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• Library > Legal Subjects > Banking and Financial Law > Buying on Hire-Purchase

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WHAT CAN BE DONE IF A HIRER HAS REMOVED THE GOODS AND HAS REFUSED TO DELIVER THE POSSESSION OF THE GOODS TO THE FINANCE COMPANY ?

Where the hirer or any person in possession of the goods has refused or failed to deliver up possession of the goods to the finance company, the finance company may

• serve on the hirer a notice of demand made by the finance company or by an agent of the finance company authorized in that behalf.

Thereafter, the finance company may make a complaint to a court of Magistrate by originating application in Form 137 supported by an affidavit setting out the facts and the grounds on which the application is made.

The Magistrate may

• summon the person complained of to appear before the court and

if it appear to the court hearing the case that the goods are being detained without just caused, the court may

• order the goods to be delivered up to the finance company at or before a time, and at a place, to be specified in the order.

Any person who neglects or refuses to comply with any order made shall be guilty of an offence and shall on conviction, be liable to a fine not exceeding RM$3,000.00 or to imprisonment for a term not exceeding 6 months or to both.

IS IT AN OFFENCE FOR A HIRER TO SALE THE GOODS IN A HIRE PURCHASE AGREEMENT ?

Yes.

Any person who, by the disposal or sale of any goods comprised in a hire purchase agreement, or by any other means, defrauds or attempts to defraud the finance company shall be guilty of an offence under the Hire Purchase Act 1967 and shall, on conviction, be liable to

• a fine not exceeding RM$10,000.00 or
• to imprisonment for a term not exceeding 3 years or
• to both.