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

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• Library > Legal Subjects > Litigation > Civil Matters

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• Banking and Financial Legalese (Terms)
• Exchange Control Rules
• Securities
• Offshore Banking
• Commodities
• Danaharta Act

I HAVE RECEIVED A NOTICE OF INTENTION TO REPOSSESS FROM THE FINANCE COMPANY. I AM HAVING FINANCIAL PROBLEM AND CANNOT AFFORD TO PAY THE INSTALLMENT PAYMENTS. WHAT SHOULD I DO ?

Rather than waiting for the finance company or its agent to repossess your goods, It is recommended that you return the goods to the finance company within 21 days after the Notice Of Intention To Repossess is served on you.

By doing so, you shall not be liable to pay

• the cost of repossession
• the cost incidental to taking possession and
• the cost of storage

However, you will be liable for the finance company's loss unless the value of the goods when being disposed is sufficient to cover your liability.

You may also introduce the finance company a person who is prepare to buy the goods for cash at a price not less than the estimate value of goods in the notice.

CAN A FINANCE COMPANY REPOSSESS THE GOODS WHERE THERE IS NO DEFAULTS IN PAYMENT UNDER THE HIRE PURCHASE AGREEMENT ?

The finance company may without notice to a hirer to take possession of goods comprised in a hire purchase agreement if

• there are reasonable grounds for believing that the goods under the agreement will be removed or concealed by hirer contrary to the provisions of the agreement.

However, the burden of proof of the existence of those grounds lies upon the finance company.

CAN A FINANCE COMPANY REPOSSESS THE GOODS WHERE THE HIRER PASSES AWAY ?

Yes.

Where the hirer is deceased, the finance company shall exercise any power of taking possession of goods comprised in a hire purchase agreement arising out of any breach of the agreement relating to the payment of installments where

• there has been 4 successive defaults of payments.