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

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IS IT COMPULSORY FOR HIRER TO INFORM THE FINANCE COMPANY WHEN THE GOODS HAVE BEEN REMOVED FROM THE ADDRESS SPECIFIED IN THE HIRE PURCHASE AGREEMENT ?

Yes.

Where the hirer removes the goods comprised in a hire purchase agreement from the address specified, the hirer must inform the finance company in writing or state in the presence of the finance company

• the new address where the goods are kept and
• the date and circumstances in which the goods were removed or taken out of his or her possession.

A hirer who does not within 14 days of the removal comply with the above 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.

Additionally, a finance company may also at any time by notice in writing served on the hirer, require him or her to state in writing where the goods are, or if the goods are not in his possession, to whom he delivered the goods and

• any hirer who does not within 14 days after the receipt of such a notice, give to the finance company such a statement or who gives a statement containing any information that is to the knowledge of the hirer false

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.

WHAT HAPPENS IF A HIRER DEFAULTS IN THE INSTALLMENTS PAYMENTS ?

Where a hirer defaults in installment payments under a hire purchase agreement the finance company may enforce

• the agreement against the hirer
• any right to recover the goods from the hirer
• any contract of guarantee relating to the agreement