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.

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

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Knowledge Base ID :   1314
Last Reviewed :   May 22, 2014
Source :   BankingInfo
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