Main Article Content
Legal effects of car financing contract, also known as “Car for Cash”, bring false impact to consumers because financial entrepreneurs are the parties who draft the form contracts. The form of contracts unfairly exploits consumers in many ways. The general concept of the contract is to conduct a sale contract; and later for the borrower to conduct a hire-purchase contract. Moreover, there are alternative forms of contract conducted to consumers which results to ambiguous legal application. In addition, controlling mechanisms of these financing entrepreneurs who are not financial institutions lack inefficiency. Therefore, relating laws are recommended to be amended.
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