What should a hire purchase agreement include?
You should receive the HP agreement within 14 days after you have signed it.
The HP agreement must have the following information:
- Description of motor vehicle;
- Computation of the total sum payable;
- Minimum deposit;
- Term charges and annual percentage rate for term charges;
- Late payment charges;
- Date on which hiring commences;
- Number of instalment repayments;
- Amount of each instalment repayment;
- Person to whom repayments are to be made, time and place of repayments; and
- Address where the motor vehicle is to be kept.
You do not need to engage a lawyer when entering into a hire purchase (HP) agreement. However, do ensure that the particulars in the agreement are similar to the Second Schedule statement received earlier.
Reprinted with permission from BankingInfo (A Consumer Education Programme by Bank Negara Malaysia)
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