Malaysia Financial Law - Buying On Hire Purchase

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FINANCIAL LAW - Buying On Hire Purchase

Related Topics : Banking Law . Offshore Banking Law . Broker Disputes . Commodities Law . Investment Terms . Raising Capital . Securities Law . Buying On Hire Purchase . Exchange Control Rules . Danaharta Act

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HOW MUCH IS THE INTEREST PAYABLE ?

The interest, often refereed to as 'Terms Charges', shall not exceed 10% per annum.

HOW MUCH DEPOSIT SHOULD I PAY WHEN I BUY GOODS ON HIRE PURCHASE ?

The deposit should not be less than 10% of the cash price of the goods bought. This means that the parties can agree to a deposit of more than 10% and deposit may be paid in cash or in goods, partly in cash and partly in goods.

WHAT WILL HAPPEN IF I DEFAULT IN MY PAYMENTS ?

The owner have the right to take possession of the goods if there have been two successive defaults of payments or a default of the last payment. The owner must serve on the hirer a notice in writing intending to re-possess the goods after a period, not less than 21 days after the service of the notice of intention to repossess Thus it is essential that you are prompt in your installment payment.

WHAT PROCEDURES MUST THE OWNER FOLLOW WHEN HE COMES TO REPOSSES THE GOODS ?

If the owner comes personally to repossess the goods then he must produce his identity card and provide the hirer with the name and address of the company to which he belongs. If the owner sends his servant agent or employee then the person concerned must produce and show his identity card and his authority card. The authority card must bear the photograph of the servant agent or employee, his name and address, the name and address of the owner, the nature of appointment of the servant agent or employee and the signature of the owner.

WHAT WILL HAPPEN IF THE GOODS ARE REPOSSESSED ?

When the owner re-possesses the goods he must, within 21 days serve on you and the guarantor(s), if any, a notice in writing informing you that if within 21 days after service of the notice, you pay the owner the amount due or remedy any breach and pay the reasonable costs incurred, the owner shall forthwith return the goods. If you do not make any attempt to recover the goods, within the time provided for, from the owner after the goods have been re-possessed, the owner will sell the goods usually by public auction or by tender. If the amount recovered from such sale by the owner is less than the amount due to the owner, then the owner shall sue you and the guarantor for the deficit sum.

CAN I COMPLETE PAYMENT OF THE INSTALLMENTS EARLIER THAN THE DATE AGREED UPON ?

The hirer can complete the hire purchase agreement earlier than the date originally agreed upon by paying the balance due at any time during the existence of the agreement or where the owner has repossessed the goods the hirer can complete the agreement by paying the owner within 21 days, the net balance due as well as reasonable costs incurred by the owner for storage, repair and maintenance of the goods repossessed.

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