Rights of Hirer Under Hire Purchase in Malaysia - Part 3

Rights of Hirer After the Signing of the Hire-Purchase Agreement

Congratulation for having a brand new car. The car is not belong to you alone. It is a joint ownership between you as the hirer and the finance company as the owner. Until you have settled the whole amount due and payable under the agreement, you cannot claim the car as yours.

If you defaulted the installments by 2 consecutive payments, the owner may issue to you a notice in the form of the Fourth Schedule of the Hire-Purchase Act, 1967^{[Act 212]}(the Act). If you have received this notice from the owner, do not delay. Make your payments immediately on the defaulted installments. If not, your car will be repossessed by the owner and/or its agent upon the expiry of the 21 days stated in the Fourth Schedule. You don't want you new car be repossessed from you, aren't you? It will be embarrassing too. What more if the repossession was done when you are together with the love one or with your family. And it was far away from home?

In Malaysia, the repo men usually will follow the car that they intend to repossess. When they are satisfied that the car is the correct one, they will overtake and block the car. They will force you to stop the car. Then, without hesitation, they will grab the key of your car, ask you and everyone inside the car to get out.


They will leave certain documents with you or asking you to pay the amount owed plus repo cost. Then, they will drive away your car. Some repo men will send you home...some don't even bother about you. It is only then you will feel sorry about yourselves for not paying the car installments timely. You must feel angry and dissatisfied because the repo men just took the car away and left you beside the road.

Some repo will tow away your car from the parking bay.

 
What will you do now?

Check the Act and get a legal advice.

...to be continued in Part 4.