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        Senator seeks stiffer penalties against financing-only motorcycle sales schemes

        Senator Richard Gordon also denounces the seizure of unpaid motorbikes
        by Aris Ilagan Feb 15, 2021
        PHOTO: Aris Ilagan

        Senator Richard Gordon has apparently not run out of ammunition to use against erring motorcycle dealers. After exposing some of their alleged business malpractices, particularly around the delayed release of registration papers and license plates, Gordon has raised another alarming issue. The legislator accused dealerships of selling units solely through financing packages with a 5% monthly interest rate.

        Bakit ayaw ninyong tumanggap ng cash kahit gusto ng buyer?” Gordon asked the dealers.

        Gordon also presented videos of motorcycle owners whose units were arbitrarily retrieved from their possession due to failure to pay monthy installments. “Hindi natin dapat gawin ’yan sa kapwa tao na pwedeng hilahin ang motorsiklo habang sila ay naliligo,” Gordon stressed.

        The senator likewise berated the dealers for forcing buyers to sign a promissory note granting them the authority to repossess units without due process. Based on reports reaching his office, Gordon claimed that the dealers offer these repossessed units as demo bikes to prospective buyers to maintain a good price point.

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        In addition, Gordon questioned the alleged practice of dealers holding on to the original copy of the motorcycle’s receipt and certificate of registration until the payments are completed.

        Of the 3,060 complaints filed before the Department of Trade and Industry (DTI) related to motorcycle sales, DTI secretary Ramon Lopez said that 287 of them have been resolved by the agency. The penalty for unfair motorcycles sales practice ranges from P500 to P10,000. Gordon is now seeking stiffer fines to curb the problem.

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        At the end of the hearing, Gordon instructed the Bureau of Internal Revenue to present sales data from the motorcycle dealerships at the next committee hearing set for Friday, February 19, 2021. 

        Owners and representatives from six motorcycle dealerships—Du Ek Sam, DES Marketing, DES Strong Motors, Desmark Corporation, Premio Corporation, and Motortrade Nationwide Corporation—attended the hearing initiated by the Senate Blue Ribbon Committee. The meeting’s objective was to look into discrepancies in the implementation of Republic Act No. 11235, otherwise known as the Motorcycle Crime Prevention Act. None of the dealer representives were allowed to air their side during the Senate probe, which lasted for almost three hours.

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        PHOTO: Aris Ilagan

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