CASE clarifies that errant car dealer company is still operational

PHOTO: Getty Images
PHOTO: Getty Images

SINGAPORE — The Consumer Association of Singapore (CASE) has clarified on its recent statement on the sudden closures of two motorcar dealers, after one of them claimed that it is still operational.

In a media statement on Monday (25 November), CASE confirmed that Karz Automobile, which is located at 31 West Coast Highway, is still operational, but from another location.

“Since Karz Automobile is still operational, CASE expects them to honour their contractual obligations towards their customers,” it stated.

Complaints from consumers

CASE explained that it issued the first statement last Friday upon receiving complaints from consumers alleging that Karz Automobile had not honoured cheques issued and did not transfer ownership of vehicles sold.

It then wrote to the car dealer company at their original address registered with the Accounting and Corporate Regulatory Authority, which was also stated in its invoices, on its website and advertisements.

CASE had also written to the company at their official email address and called their office line, but received neither replies nor notification from Karz Automobile about having relocated. CASE then sent personnel to the registered address and found that the unit had been vacated.

Company clarified through lawyers

It was only after CASE issued the first statement that Karz Automobile reached out through its lawyers and clarified that it is still operational.

“CASE understands from consumers that their complaints remain unresolved. This is of concern to CASE as the amount of potential losses to consumers is substantial,” it said.

“CASE will continue to engage Karz Automobile to resolve all outstanding consumer complaints.”

In the original statement, CASE reported that customers of two motorcar dealers, Universe Motoring and Karz Automobile, have lost more than S$330,000 after the sudden closures of the two companies.

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Sudden closures of two car dealers cost customers S$330K