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What are my rights and responsibilities as a hirer under a hire purchase agreement?

Your rights:

  • To receive a copy of the hire purchase (HP) agreement.

  • To obtain any information regarding the account.

  • To request a statement of outstanding balance (once every 3 months).

  • To settle early the full outstanding amount.

  • To terminate the agreement at any time.

Your responsibilities:

  • Read all the fine print in the written agreement.

  • Check that the purchase price and HP terms in the agreement are as agreed. Do not sign blank or incomplete agreement/ forms.

  • Ensure that you can afford the instalment payments for the duration of the HP financing and pay your instalments on time.

  • Know your rights and obligations under the HP contract so that you do not commit any actions leading to a breach.

  • Keep all documents pertaining to the HP financing such as agreement, receipts, etc. in a safe place.

  • Not to remove, sell or dispose off the motor vehicle without the consent of your banking institution.

  • Inform your banking institution of any change of address.

  • Insure the motor vehicle after the first year and to update your banking institution within 14 days before the current policy expires.


Back to Hire Purchase (HP)'s Contents


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


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Notes
Knowledge Base ID :   1312
Last Reviewed :   May 22, 2014
Source :   BankingInfo
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