What is the maximum late payment charge on car loan or hire purchase in Malaysia?
The Hire Purchase Act sets the maximum late payment charges allowed.
Maximum late payment charges:
Fixed rate financing
Not more than 8% per annum calculated on a daily basis on overdue instalments.
Variable rate financing
A rate of 2% above the prevailing rate of term charges (interest rate) imposed.
Reprinted with permission from BankingInfo (A Consumer Education Programme by Bank Negara Malaysia)
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