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.

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Reprinted with permission from BankingInfo (A Consumer Education Programme by Bank Negara Malaysia)

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Knowledge Base ID :   1302
Last Reviewed :   May 22, 2014
Source :   BankingInfo
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