What are the rights of a guarantor under a hire purchase agreement?
A guarantor has the following rights under a hire purchase (HP) agreement:
- To receive a copy of the hire purchase (HP) agreement.
- T receive all notices on payment issued by the banking institution to the hirer.
- To be discharged from liability once the amount due is fully paid.
- To take legal action against the hirer for breach of obligation.
- To be indemnified by the hirer against claims by the banking institution after he has paid the amount due.
Reprinted with permission from BankingInfo (A Consumer Education Programme by Bank Negara Malaysia)
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