hire purchase

Hire-Purchase Act 1967

Hire-Purchase Act 1967

(inclusive of

Contents

Contents

Imortance of Hire-Purchase Act 1967 (HPA)Imortance of Hire-Purchase Act 1967 (HPA)



!e"nition of h a#reement!e"nition of h a#reement



$coe of %#oo&s'$coe of %#oo&s'



ormation of h a#reementormation of h a#reement



$tatutor ri#hts of hirer$tatutor ri#hts of hirer



Imortance of Hire-Purchase Act

Imortance of Hire-Purchase Act

1967

1967

• _{Prior to 11 Aril 1968+Prior to 11 Aril 1968+}

•

•  _{$u,ect to the la. of contract / $ale of $u,ect to the la. of contract / $ale of}

0oo&s

0oo&s r&inance r&inance 1927 1927 as as %a#reement %a#reement toto sell'

sell'

•

• _{acuna+ refer acuna+ refer to HP to HP concet at concet at common la.common la.++}

follo. terms of the a#reement follo. terms of the a#reement

•

• _{PrPro,lems+ o,lems+ lac5 lac5 in in consumer consumer s' s' rotectionrotection}

•

• _{HPHPA 1967+ A 1967+ rotect consumers' rotect consumers' interestsinterests}

,etter than common la. version ,etter than common la. version

!e"nition of HP A#reement

$ (1) of HPA+

i- ettin# of #oo&s .ith an otion to urchase

ii- An a#reement for the urchase of #oo&s , instalments

But not+

- Cre&it sale or

-ransaction amon#

&ealers of same #oo&s

•

_{C+ An}

_{C+ An}

a#reement

a#reement

.herein the

.herein the

o.ner a#rees

o.ner a#rees

to hire #oo&s

to hire #oo&s

to the hirer

to the hirer

.ith an

.ith an

otion for the

otion for the

hirer to

hirer to

urchase the

urchase the

#oo&s

#oo&s

Cases

Cre&it Cor () :h& v he 'sian In&ustrial

inance Cor / Anor ;1976<

Property in the goods only passes to the

hirer upon payment of total amount

agreed.

 ractors 'sia :h& v =um Pem,inaan 'sia

$&n :h& ;1979<

Court looks upon the intention of the

 parties

$coe of %0oo&s'

iste& in irst $che&ule of the HPA

All consumer #oo&s (urchase& for ersonal>

famil / househol& uroses)

otor vehicles

What happen if goods not covered under the First Sch?:

: inance :erha& v o. Pin# in# A o. Pen# ?nt ;@@2< 3  @8+

B%?ven thou#h the a#reement &oes not fall .ithin the am,it of the Act (not .ithin the 1st $ch) / is also not a ,ill of sale> it is a vali& h a#reement un&er the common la. he reossession of the vehicle (,ull&oer) .as &one , the A in accor&ance .ith the terms of the a#reement / is la.ful'

FIRST SCHEDULE: [Section 1] -List of goods

LIST OF GOODS

1 All consumer #oo&sE

! otor vehicles> namelF (a) Invali& carria#esE

() otor CclesE

(c) otor Cars inclu&in# taGi ca,s an& hire carsE

(d) 0oo&s *ehicles (.here the maGimum ermissi,le la&en .ei#ht &oes not eGcee& 24@ 5ilo#rams)E

ot HP A#reement+

ease+ Has similarit ,ut &iers as h is for

consumer #oo&s an& motor vehicle ease is for other than that urose

!agartanam a"l #alara$u v %reka Construction #hd &'* + ,- /: the lease a'm / h a'm .as null / voi&

oan+  _{0ra1,alaysian Finance #hd v #orneo Wood}

(Saah) Sdn #hd 2 3rs &'* 4 ,- 5+: loan

transaction &is#uise& as a HP transaction iste& 3 #oo&s cumulativel instea& of item , item /

&eliver an& installation of machineries .as

ormation of HP

A#reement

  hree sta#es+

1 Pre-contractual $ta#e

 ?nterin# into HP a#reement $ta#e

3 Post-contractual $ta#e

otes+

-ailure to coml the roce&ures un&er (1) / ()+ *oi& a#reement

-ailure to coml roce&ure (3)+ an erson shall ,e #uilt of an oence un&er this Act

1- "#e-cont#$ctu$% St$ge

e#otiation sta#e+ e#al o,li#ations on o.ner> &ealer or

&ealer's a#ent

$ 4(1) (a) Jritten statement &ul comlete& / si#ne&

, .oul& ,e o.ner  a#ent as in Part I of the $econ& $che&ule serve& to rosective hirers

&s. +(6) (): if y dealer 7 Part % 8 9ritten duly completed 2 signed y dealer 2 also as Part %% 8 9ritten duly completed 2 signed y dealer 2

 prospective o9ner)

Propective"intending hirer"agent shall ackno9ledge

receipt of the 9ritten statement.

&O o'%ig$tion to ente# into () $g#ee*ent + &O

)$,*ent o# conside#$tion imose& for rearation  service of the statements

PAK I of SECO&D SCHEDULE -Su**$#, of

,ou# n$nci$% o'%ig$tions unde# t(e )#o)osed (i#e )u#c($se $g#ee*ent

;Para#rah 4(1)(a) an& $u,ara#rah 4(1)() (i)<

 his &ocument contains a short &escrition of

the #oo&s comrise& in the hire-urchase a#reement an& a summar of our "nancial o,li#ations un&er the roose& hire-urchase a#reement

PART II

[!"#ara$ra#h 4%1&(b)%ii&'

()*+*T ), PR)P+(TI-+ )*+R To////////////////

/////////////////.

TA+ *)TI(+ ha ///////////.. *RI( *o//////////////.o ////////////////// Innds o nr ino a hir #!rhas a$rn in rs# o /////////. and a o# o a s!ar o his inania o"i$aions !ndr h #ro#osd hir#!rhas a$rn has "n srd on hi on h /////////////// da o //////////.20//..: a o# o ;hih is aahd hr;ih: #!rs!an o s!"#ara$ra#h 4%1&(b)%i& o h <irP!rhas A 1967.

2. I o! a$r o " a #ar as o;nr in h #ro#osd hir#!rhas a$rn: =ind onir " si$nin$ a h a##ro#ria o!n o his do!n. %i$na!r o Dar&

*a>///////////////..  Addrss>//////////////.. Da>////////////////. To>/////////////////. //////////////////...

?I@/////////////////////////////////////. hr" a$r o " a #ar as o;nr in h #ro#osd hir#!rhas a$rn.

%i$na!r o h #ros#i o;nr&

*a>///////////////////  Addrss>//////////////////

! Ente#ing into H"

.g#ee*ent St$ge

$ 4A+ $hall ,e in .ritin#

$ 4:+ $hall ,e si#ne& ,  on ,ehalf of all arties on the

&ul comlete& a#reement

$ 4C+ Contents of the a#reement+ &ate of commencement>

no of instalments> amounts of each instalments / erson to .hom / lace to a> time for ament> suLcient

&escrition of #oo&s / a&&ress of #oo&s

$ 4!+ searate h a#reement for ever item urchase&

$ 4?+ motor vehicle+ hirer ma ma5e a reMuest in .ritin# to

an o.ner to 5ee the re#istration certi"cate (inclu&es

re#istration ,oo5) of the motor vehicle> uon .hich o.ner must furnish(If not> o.ner shall ,e #uilt of an oence

! Ente#ing into H"

.g#ee*ent St$ge

$ 4 (1) A hire-urchase a#reement shall not ,e entere& into .here

the motor vehicle has ,een altere& or mo&i"e& in its construction an& structure

$4() A hire-urchase a#reement that contravenes su,section (1) shall ,e voi&

_{$ 40 (1) or a secon&-han& motor vehicle> the erson .ho inten&s}

to enter into the h a#reement shall &eclare in .ritin# an &efects in accor&ance .ith the insection reort , the relevant authorit &etermine& , the Controller

 N&efectO inclu&es &efect to the mechanical or oerational sstem>

construction> structure an& ,uil&-u an& "ttin# of the motor vehicle s40(3) An erson .ho contravenes this section shall ,e #uilt of an oence un&er

/ "ost-cont#$ctu$% St$ge

$ 2(1)+ o.ner must serve the hirer / #uarantors (if an) a

co of h a#reement .ithin 1 &as after it is ma&e

() At an time ,efore the "nal ament has ,een ma&e un&er

a h a#reement the o.ner shall> .ithin 1 &as after he has receive& a reMuest in .ritin# from the hirer> sul to the hirer a co of an memoran&um or note of the a#reement+

(a) on ament , the hirer of the rescri,e& feeE or

() .here no fee is rescri,e&> one free co> an& thereafter a fee as ma ,e rescri,e& shall ,e char#e& for the sul of a secon& or su,seMuent co thereof

$2(3)+ o.ner must serve the hirer a co of the olic or

statement in .ritin# settin# out the terms> con&itions an& eGclusions of the olic that aect the ri#hts of the hirer> .ithin 7 &as of receit of the olic> if .ith insurance covera#e

$tatutor Ki#hts of Hirer

1 s 9+ Co of statement on his "nancial

osition

 $1@+ Aroriation

3 $11+ Alin# or&er for removin# #oo&s

4 $1+ Assi#nment

2 $13+ eration of la. uon &eath

,an5rutc

6 $14+ ?arl comletion

7 $12+ ermination

$9+ At an time ,efore the "nal ament has ,een ma&e

un&er a HP a#reement the o.ner shall> .ithin fourteen &as after he has receive& a reMuest in .ritin# from the hirer>

sul to the hirer a statement si#ne& , the sai& erson or his a#ent sho.in#F

(a) the amount ai& to the o.ner , or on ,ehalf of the hirerE () the amount .hich has ,ecome &ue un&er the a#reement

,ut remains unai&E

(c) the amount .hich is to ,ecome aa,le un&er the a#reementE an&

(d) the amount &erive& from interest on over&ue instalments+ .ner need not co*)%, .ith such a reMuest if he has sent the

hirer a statement .ithin a erio& of 3 months imme&iatel rece&in# the receit of the reMuest

$9() In the event of a failure .ithout reasona,le cause to coml .ith su,section (1) then> .hile the &efault continuesF

(a) the o.ner shall not ,e entitle& to enforceF (i) the a#reement a#ainst the hirerE

(ii) an ri#ht to recover the #oo&s from the hirerE

(iii) an contract of #uarantee relatin# to the a#reementE

() an securit #iven , the hirer in resect of mone aa,le un&er the a#reement or #iven , a #uarantor in resect of

mone aa,le un&er such a contract of #uarantee as aforesai& shall not ,e enforcea,le a#ainst the hirer or the #uarantor , an hol&er thereof

(3) If the &efault aforesai& continues for a erio& of one month> the o.ner shall ,e #uilt of an oence an& shall> on conviction> ,e lia,le to a "ne not eGcee&in# one thousan& rin##it

s1@+ A hirer .ho is lia,le to ma5e aments in resect of t.o or more hire-urchase a#reements to the same

o.ner shall> not.ithstan&in# an a#reement to the contrar> ,e entitle&> on ma5in# an ament in

resect of the a#reements .hich is not suLcient to &ischar#e the total amount then &ue un&er all the a#reements> to reMuire the o.ner to aroriate the

sum so ai& , him in or to.ar&s the satisfaction of the sum &ue un&er an one of the a#reements> or in or

to.ar&s the satisfaction of the sums &ue un&er an t.o or more of the a#reements in such roortions as he thin5s "t> an&> if he fails to ma5e an such

aroriation as aforesai&> the ament shall , virtue of this section ,e aroriate& to.ar&s the satisfaction of the sums &ue un&er the resective hireurchase

a#reements in the or&er in .hich the a#reements .ere entere& into

s11+

a#reement> it is the &ut of a hirer to 5ee the #oo&s comrise& in the a#reement in his

ossession or control at a articular lace or not to remove the #oo&s from a articular lace> a court of a a#istrate ma> on the alication of the hirer> ma5e an or&er

arovin# the removal of the #oo&s to some other lace> .hich lace shall> for the

uroses of the a#reement> ,e su,stitute& for the lace mentione& in the a#reement

s1(1) he ri#ht> title an& interest of a hirer un&er a hire-urchase a#reement ma ,e assi#ne& .ith the

consent of the o.ner> or if his consent is unreasona,l .ithhel&> .ithout his consent

()no ament or other consi&eration shall ,e reMuire& , an o.ner for his consent to such an assi#nment (3) the hirer ma al to the Hi#h Court for an or&er

&eclarin# that the consent of the o.ner to that assi#nment has unreasona,l ,een .ithhel&

(4) As a con&ition of #rantin# consent> the o.ner ma stiulate that all &efaults un&er the a#reement shall ,e ma&e #oo& / reMuire hirer an& assi#nee to eGecute / &eliver a form / a reasona,le costs incurre& ,

s 13+ he ri#ht> title an& interest of a hirer un&er a hire-urchase a#reement shall ,e

caa,le of assin# , oeration of la. to the ersonal reresentative of the hirer an& if the hirer is a coman the liMui&ator ma

eGercise the same ri#ht un&er the a#reement as the coman ,ut nothin# in this section

shall relieve an ersonal reresentative or

liMui&ator from comliance .ith the rovisions of the a#reement

s 14 (1) he hirer un&er a hire-urchase a#reement ma> if he has #iven notice in

.ritin# to the o.ner of his intention to &o so> on or ,efore the &a seci"e& for that urose in the notice> comlete the urchase of the

#oo&s , ain# or ten&erin# to the o.ner the net ,alance &ue un&er the a#reement

(3) he ri#hts conferre& on the hirer , this section ma ,e eGercise& , himF

(a) at an time &urin# the continuance of the a#reementE or

() .here the o.ner has ta5en ossession of the #oo&s> uon ament to the o.ner (.ithin t.ent-one &as after the o.ner has serve& a notice in the form set out in the ifth $che&ule) in a&&ition to the net

,alance &ue to#ether .ith the reasona,le costs inclu&in# costs (if an) of stora#e> reair or

maintenance of the #oo&s incurre& , the o.ner inci&ental to his ta5in# ossession of the #oo&sE or

(c) .here the hirer has returne& the #oo&s to the o.ner .ithin t.ent-one &as after the service on him of the notice in the form set out in the ourth $che&ule>

uon ament to the o.ner (.ithin t.ent-one &as after the o.ner has serve& a notice in the form set out in the ifth $che&ule) the net ,alance &ue un&er the Act

$12(1) he hirer ma terminate the a#reement , returnin# the #oo&s to the o.ner &urin# or&inar ,usiness hours at the lace at .hich the o.ner or&inaril carries on ,usiness or to the lace

seci"e& for that urose in the a#reement

() If it .oul& ,e imractica,le to return the #oo&s to such a lace> the hirer ma terminate the

a#reement , returnin# the #oo&s to an lace a#ree& to , the arties to the a#reement

(3) If fails to a#ree> hirer ma al to a#istrate Court to "G the lace

Keossession+ s16 (1)

Keossession coul& onl eGercise& , o.ner if+

i) the ament of instalments amounts to not more than sevent-"ve ercent of the total cash rice of the #oo&s comrise& in the hire-urchase a#reementE an&

ii)there ha& ,een t.o successive &efaults of ament , the hirer (&ecease&+ 4 successive &efaults (1C))E an&

iii).ner has serve& on the hirer a notice> in .ritin#> in the form set out in the ourth $che&ule an& the erio& "Ge& , the notice has eGire&> .hich shall not ,e less than t.ent-one &as after the service of the notice (1A) if more+ o.ner can still o,tain or&er from court

() An o.ner nee& not coml .ith su,section (1)

if there are reasona,le #roun&s for ,elievin# that the #oo&s comrise& in the hire-urchase

a#reement .ill ,e remove& or conceale& , the hirer contrar to the rovisions of the a#reement> ,ut the onus of rovin# the eGistence of those

#roun&s lies uon the o.ner

(3) Jithin t.ent-one &as after the o.ner has

ta5en ossession of #oo&s that .ere comrise& in a hire-urchase a#reement he shall serve on the hirer an& ever #uarantor of the hirer a notice> in .ritin#> in the form set out in the ifth $che&ule

4) Jhere the o.ner ta5es ossession of #oo&s that

.ere comrise& in a hire-urchase a#reement he shall &eliver or cause to ,e &elivere& to the hirer

ersonall a &ocument ac5no.le&#in# receit of the #oo&s or> if the hirer is not resent at that time> sen& to the hirer imme&iatel after ta5in# ossession of the #oo&s a &ocument ac5no.le&#in# receit of the #oo&s

(2) he &ocument ac5no.le&#in# receit of the

#oo&s> reMuire& un&er su,section (4) shall set out a short &escrition of the #oo&s an& the &ate on .hich> the time at .hich an& the lace .here the o.ner

(6) If the notice reMuire& , su,section (3) is not

serve&> the ri#hts of the o.ner un&er the hire-urchase a#reement thereuon cease an&

&etermineE ,ut if the hirer eGercises his ri#hts un&er this Act to recover the #oo&s so ta5en

ossession of> the a#reement has the same force an& eect in relation to the ri#hts an& lia,ilities of the o.ner an& the hirer as it .oul& have ha& if the notice ha& ,een &ul #iven

(7) :efore an& .hen eGercisin# the o.er of ta5in#

ossession the o.ner or his servant or a#ent shall> in a&&ition to the rovisions of this Act> coml

.ith an re#ulations relatin# to the manner of ta5in# ossession as ma ,e rescri,e&

A hirer .ho returns #oo&s comrise& in a hire-urchase a#reement .ithin t.ent-one &as after the service on him of the notice in the form set out in the ourth $che&ule shall not ,e lia,le to aF

(a) the cost of reossessionE

() the cost inci&ental to ta5in# ossessionE an& (c) the cost of stora#e

Section 10 One# to #et$in )ossession of

goods #e)ossessed fo# tent,-one d$,s

(1) Jhere an o.ner has ta5en ossession of an #oo&s un&er section 16 he shall not> .ithout the .ritten consent of the hirer> sell or &isose of the #oo&s or art .ith ossession thereof until after the eGiration of t.ent-one &as after the &ate of the service on the hirer of the notice referre& to in

su,section 16(3) or> if notice un&er ara#rah 18(1) (a) has ,een #iven> until the time for ament or

ten&er ursuant to that notice has eGire& (.hichever is the later)

() An o.ner .ho sells or &isoses of an #oo&s or

arts .ith ossession of an #oo&s in contravention of su,section (1) shall ,e #uilt of an oence un&er this Act

Section 10. "e#*its fo# #e)ossession

(1) o erson shall un&erta5e reossession of #oo&s comrise& in a hire-urchase

a#reement .ithout a .ritten ermit issue& , the Controller

() An erson .ho contravenes su,section (1) shall ,e #uilt of an oence un&er this Act

Section 12 Hi#e#3s #ig(ts $nd i**unities (en

goods #e)ossessed

(1) Jhere the o.ner ta5es ossession of an #oo&s un&er section 16F

(a) the hirer ma .ithin t.ent-one &as after the

service on him of the notice referre& to in su,section 16(3) , #ivin# to the o.ner a notice in .ritin# si#ne& , the hirer or his a#entF

(i) reMuire the o.ner to re-&eliver to or to the or&er of

the hirer (su,ect to the comliance , the hirer .ith the rovisions of section 19) the #oo&s that have ,een reossesse&E or

(ii) reMuire the o.ner to sell the #oo&s to an erson

intro&uce& , the hirer .ho is reare& to ,u the #oo&s for cash at a rice not less than the estimate& value of the #oo&s set out in the "rst mentione&