CREDIT SALE (CS) HIRE PURCHASE (HP)

Consumer Protection
Governing Law (Credit Sale) Regulations Hire Purchase Act 1967
2012

Seller, Purchaser and

Dealer (Seller), Hirer
Credit Facility Provider
Parties (Purchaser) and Finance
(which can also be the
Company (Owner)
Seller)

Goods Goods which are    i.      All consumer goods.

primarily purchased,  
used or consumed for
personal, domestic or ii.      Motor vehicles
household purposes, and including invalid carriages,
includes- motor cycles, motor cars
including taxi cabs and
  hire cars, goods vehicles
(the maximum permissible
(a)  goods attached to, or laden weight does not
incorporated in, any real exceed 2540 kilograms),
or personal property; buses including stage
buses.
(b)  animals, including
fish;

(c)   vessels and vehicles;

(d)  utilities; and

(e)  trees, plants and

crops whether on, under
or attached to land or
 not,
but does not include
choses in action,
including negotiable
instruments, shares,
debentures and money.
The ownership of the
goods passed to the
purchaser as soon as the
Ownership of Goods credit sale agreement is
made, even if the
purchaser has not made
any payment yet.
Printed in Arial font in
the size of not less than 8
in the national language
Requirements as to form and the English language
of Agreement and fulfil any other
requirement as may be
determined by the
Controller.
Agreement for more A seller or credit facility
than one goods provider is allowed to
provide more than one
credit sale agreement for
purchases of more than
one goods in the same
transaction. However, a
seller or credit facility
provider may only
impose one fee for
processing of document
The ownership of the
goods is not passed at the
time of the hire purchase
agreement or upon
delivery of the goods but
remains in the finance
company until the hirer
has fully paid the price as
agreed upon in the hire
purchase agreement
Printed in black in type of
a size not smaller than the
type known as ten-point
Times in the national
language or English
language.
There must be a separate
hire purchase agreement
in respect of every item of
goods purchased. Any
goods which are
essentially similar or
complementary to each
other and sold as a set
shall be regarded as an
item.
 for all credit sale
agreements for
purchases that are
carried out in a
transaction.

Finance company may

require a hirer to furnish a
guarantor or such number
of guarantors acceptable
Requirement of
No to the finance company to
Guarantor
guarantee the
performance of the hirer’s
obligations under the hire
purchase agreement.

Within twenty-one days

A copy of the credit sale
after the making of a hire
agreement shall be
purchase agreement, the
Delivery of copy of served to the purchaser
finance company shall
Agreement to the within twenty-one days
serve or cause to be
Purchaser/Hirer from the date of signing
served on the hirer and
the credit sale
the guarantors a copy of
agreement.
the agreement each.

A hirer must pay a deposit

No deposit required to
Deposit of at least 10% of the cash
be paid by the purchaser.
price of the goods.

Early Settlement Allowed. If a purchaser Allowed. The hirer must

  makes a payment for an give notice in writing to
early settlement before the finance company of
the expiration period of his intention to do so, on
the credit sale or before the day specified
agreement, the seller or for that purpose in the
credit facility provider notice, complete the
shall grant a rebate to purchase of the goods by
the purchaser. Grant of paying or tendering to the
rebate may be exempted finance company the net
for promotional goods or balance due under the
where other goods are agreement.
 offered as a prize for the  
goods sold.

Default in Instalment In the event of default in Where a hirer defaults in

Payments payment by the instalment payments
purchaser within the under a hire purchase
period agreed in the agreement the finance
credit sale agreement, company may enforce:
the seller or the credit >  the agreement against
facility provider may- the hirer
 
>   any right to recover the
(a)  demand that the goods from the hirer
buyer voluntarily
surrender the goods >   any contract of
provided that a notice guarantee relating to the
relating to the voluntary agreement
surrender of goods shall
be served to the
 
purchaser within the
period of fifteen days
before the date the
goods are to be
surrendered;

(b)  allow the purchaser

to enter into consultation
with the seller or the
credit facility provider for
alternative dispute
resolution; or

(c)   both.

The parties are also

bound by the
implications of default as
 provided in the credit
sale agreement.

Right to Repossess No A.      If payment of

instalments amounts to
not more than seventy-
five percent of the total
cash price of the goods
comprised in the hire-
purchase agreement, the
finance company may
exercise its right to
repossess the goods
provided that:
 

i.         there had been two

successive defaults of
payment by the hirer;

ii.         a notice, in writing,

has been served on the
hirer in the form set out in
the Fourth Schedule of the
Act; and

iii.         the period fixed by

the notice has expired,
which shall not be less
than twenty-one days
after the service of the
notice.

B.      If the payment of

instalments made
amounts to more than
seventy-five percent of
the total cash price of the
goods comprised in a hire-
purchase agreement, the
finance company may
exercise its right to
repossess the goods
provided that:

i.         there had been two

successive defaults of
payment by the hirer;

ii.       an order of court is

obtained;

iii.      a notice, in writing,

has been served on the
hirer in the form set out in
the Fourth Schedule of the
Act; and

iv.     the period fixed by

the notice has expired,
which shall not be less
than twenty-one days
after the service of the
notice.

C.      Where a hirer is

deceased, the finance
company shall not
exercise any power of
taking possession of goods
 comprised in a hire-
purchase agreement
arising out of any breach
of the agreement relating
to the payment of
instalments unless there
has been four successive
defaults of payments.

The hirer of any goods

comprised in a hire
purchase agreement may
terminate the agreement
by returning the goods to
the finance company
As provided in the credit
Right to Terminate during ordinary business
sale agreement.
hours at the place at
which the finance
company ordinarily carries
on business or to the place
specified for that purpose
in the agreement.