Hire-Purchase Act 1967 (Act 212) & Regulations [As At 1st April 2022]

Hire-Purchase Act 1967 (Act 212)

An Act to regulate the form and contents of hire-purchase agreements, the rights and duties of parties to such agreements and to make provisions for other matters connected therewith and incidental thereto.

Detailed Contents Of Hire-Purchase Act 1967 (Act 212) :

The Hire-Purchase Act 1967 (Act 212) is a Malaysian law that governs the hire-purchase agreements between the owner of a product and the person who hires or purchases it. The law aims to protect the interests of consumers and ensure that they are not exploited by unscrupulous businesses. Here are the key details of the Act and its regulations:

Definition: The Act defines a hire-purchase agreement as a contract under which the owner lets the hirer have the use and possession of goods for a certain period of time, in return for regular payments. At the end of the agreement, the hirer has the option to purchase the goods.

Disclosure requirements: The Act requires the owner to provide a disclosure statement to the hirer, which includes details such as the cash price of the goods, the amount of deposit required, the number and amount of payments, the interest rate, and any additional charges.

Cooling-off period: The Act provides a cooling-off period of 14 days during which the hirer can cancel the agreement without penalty. The hirer must inform the owner in writing within this period.

Termination: The Act specifies the conditions under which the owner can terminate the agreement, such as if the hirer defaults on payments or breaches any other terms of the agreement.

Repossession: The Act regulates the repossession of goods by the owner, stating that the owner must give notice to the hirer before repossessing the goods. The hirer has the right to reinstate the agreement by paying the arrears and costs within a certain period.

Regulations: The Hire-Purchase Regulations 1969 provide further details on the Act, such as the format of the disclosure statement, the calculation of interest, and the procedures for repossession and reinstatement.

In conclusion, the Hire-Purchase Act 1967 (Act 212) and its regulations provide important protections for consumers in hire-purchase agreements. It is important for both owners and hirers to understand and comply with the provisions of the law to avoid disputes and legal consequences.

Hire-Purchase Act 1967 Contains:

Hire-Purchase Act 1967 (Act 212)
Hire-Purchase (Compounding of Offences) Regulations 1993
Hire-Purchase (Terms Charges) Regulations 2005
Hire-Purchase (Application of Permit and Procedure of Repossession) Regulations 2011
Hire-Purchase (Fee for Second-Hand Motor Vehicle Inspection Report) Regulations 2019

Find more statutes like Hire-Purchase Act 1967 : Statutes