Hire - Purchase Act 1967 Part II — FORMATION AND CONTENTS OF HIRE-PURCHASE AGREEMENTS

Requirements relating to hire-purchase agreements

s 4

(1) Before any hire-purchase agreement is entered into in respect of any goods— (a) in a case where negotiations leading to the making of the hire-purchase agreement is carried out by any person who would be the owner under the hire-purchase agreement to be entered into, or by any person, other than the dealer, acting on his behalf, such person shall serve on the intending hirer a written statement duly completed and signed by him in accordance with the form set out in Part I of the Second Schedule; (b) in a case where negotiations leading to the making of the hire-purchase agreement is carried out by a dealer, such dealer shall— (i) serve on the intending hirer a written statement duly completed and signed by him in accordance with the form set out in Part I of the Second Schedule; and (ii) at any time after the service of the written statement referred to in subparagraph (i) but before the hirepurchase agreement is entered into, serve on the intending hirer a written statement duly completed and signed both by him and the prospective owner in accordance with the form set out in Part II of the Second Schedule. (2) The written statements referred to in subsection (1) shall be served by delivering it in person to the intending hirer or his agent who shall acknowledge receipt of the same by signing under his hand at the appropriate column contained therein. (3) Any person who has been served with the written statement or statements referred to in subsection (1) shall not be under any obligation to enter into any hire-purchase agreement and no payment mentor or other consideration shall be required from him in respect of the preparation or service of such statement or statements, as the case may be. (4) A hire-purchase agreement entered into in contravention of subsection (1) shall be void. (5) An owner who enters into a hire-purchase agreement and a dealer who carries out negotiations leading to the making of a hire-purchase agreement that does not comply with subsection (1), irrespective of whether such hire-purchase agreement is void or otherwise, shall be guilty of an offence under this Act. (6) Where a person upon whom a written statement or statements referred to in subsection (1) have been served is subject to any obligation to enter into any hire-purchase agreement to which such written statement or statements relate or is required to make any payment or other consideration in respect of the preparation or service of such statement or statements, as the case may be, any person who imposed such obligation or requirement shall be guilty of an offence under this Act. (7) The Minister may, by order, amend, vary, delete from, or add to, Part I and Part II of the Second Schedule.

Hire-purchase agreement to be in writing

s 4A

(1) A hire-purchase agreement in respect of any goods specified in the First Schedule shall be in writing. (1a) A hire-purchase agreement shall be in the national language or English language. (2) A hire-purchase agreement that does not comply with subsections (1) and (1a) and shall be void. (3) An owner who enters into a hire-purchase agreement that does not comply with subsections (1) and (1a) shall, notwithstanding that the hire-purchase agreement is void, be guilty of an offence under this Act.

Hire-purchase agreement to be signed, etc.

s 4B

(1) Every hire-purchase agreement shall be signed by or on behalf of all parties to the agreement. (2) No owner, dealer, agent or person acting on behalf of the owner shall require or cause any intending hirer or his agent to sign a hire-purchase agreement or any other form or document relating to a hire-purchase agreement unless such hire-purchase agreement, form or document has been duly completed. (2a) No owner shall deliver or cause to be delivered to any dealer, agent or person acting on behalf of the owner a hirepurchase agreement or any other form or document relating to a hire-purchase agreement which has not been duly completed. (3) A hire-purchase agreement that contravenes subsections (1), (2) and (2a) shall be void. (4) An owner, dealer, agent or person acting on behalf of the owner who— (a) enters into a hire-purchase agreement in contravention of subsection (1); (b) requires or causes an intending hirer or his agent to sign a hire-purchase agreement in contravention of subsection (2); or (c) delivers or causes to be delivered a hire-purchase agreement in contravention of subsection (2a), shall, notwithstanding that the hire-purchase agreement is void, be guilty of an offence under this Act.

Contents of hire-purchase agreement

s 4C

(1) Every hire-purchase agreement— (a) shall— (i) specify a date on which the hiring shall be deemed to have commenced; (ii) specify the number of instalments to be paid under the agreement by the hirer; (iii) specify the amounts of each of these instalments and the person to whom and the place at which the payments of these instalments are to be made; (iv) specify the time for the payment of each of those instalments; (v) contain a description of the goods sufficient to identify them; (vi) specify the address where the goods under the hirepurchase agreement are; (b) where any part of the consideration is or is to be provided otherwise than in cash, shall contain a description of that part of the consideration; (c) shall set out in a tabular form— (i) the price at which at the time of signing the agreement the hirer might have purchased the goods for cash (in this Act referred to and in the agreement to be described as “cash price”); (ii) the amount paid or provided by way of deposit (in this Act referred to and in the agreement to be described as “deposit”) showing separately the amount paid in cash and the amount provided by any consideration other than cash; (iii) any amount included in the total amount payable to cover the expenses of delivering the goods or any of them or to the order of the hirer (in this Act referred to and in the agreement to be described as “freight”); (iv) any amount included in the total amount payable to cover vehicle registration fees in respect of the goods (in the agreement to be described as “vehicle registration fees”); (v) any amount included in the total amount, payable for insurance in respect of the goods or any of them; (vi) the total of the amounts referred to in subparagraphs (i), (iii), (iv) and (v) less the deposit; (vii) the amount of any other charges included in the total amount payable (in this Act referred to and in the agreement to be described as “terms charges”); (viii) the annual percentage rate for terms charges which shall be calculated in accordance with the formula set out in the Seventh Schedule; (ix) the total of the amounts referred to in subparagraphs (vi) and (vii) of this paragraph (in this Act referred to as “the balance originally payable under the agreement”); and (x) the total amount payable; (d) shall not contain any particulars which differ in any material way from the particulars contained in the written statement or statements served on the hirer pursuant to paragraph 4(1)(a) or 4(1)(b), as the case may be. (1a) Paragraph (1)(d) shall not apply where in the hire-purchase agreement the terms charges are at a variable rate. (1b) Where in a hire-purchase agreement the terms charges are at a variable rate, the following items shall be specified in the hire-purchase agreement based on the terms charges calculated in accordance with the base lending rate applicable at the time the hire-purchase agreement is entered into: (a) the number of instalments to be paid under the agreement by the hirer; (b) the amount of each of these instalments; (c) the annual percentage rate of terms charges which shall be calculated in accordance with the formula set out in the Seventh Schedule; and (d) the balance originally payable under the agreement. (2) A hire-purchase agreement that contravenes subsection (1) shall be void. (3) An owner who enters into a hire-purchase agreement in contravention of subsection (1) shall, notwithstanding that the hire-purchase agreement is void, be guilty of an offence under this Act.

Separate agreement for every item of goods

s 4D

(1) There shall be a separate hire-purchase agreement in respect of every item of goods purchased under this Act. (2) A hire-purchase agreement that does not comply with subsection (1) shall be void. (3) An owner who enters into a hire-purchase agreement that does not comply with subsection (1) shall, notwithstanding that the hire-purchase agreement is void, be guilty of an offence under this Act. (4) For the purposes of this section, any goods which are essentially similar or complementary to each other and sold as a set shall be regarded as an item.

Motor vehicle registration certificate

s 4E

(1) Where the goods comprised in a hire-purchase agreement is a motor vehicle, a hirer may make a request in writing to an owner to keep the registration certificate of the motor vehicle. (2) The owner shall, upon the request of the hirer under subsection (1), furnish the registration certificate of the motor vehicle to the hirer. (3) For the purpose of subsection (1), registration certificate includes registration book. (4) An owner who contravenes subsection (1) shall be guilty of an offence under this Act.

Altered or modified motor vehicle

s 4F

(1) A hire-purchase agreement shall not be entered into where the goods comprised in the hire-purchase agreement is a motor vehicle which has been altered or modified in its construction and structure. (2) A hire-purchase agreement that contravenes subsection (1) shall be void.

Declaration on second-hand motor vehicle

s 4G

(1) Where goods to be comprised in a hire-purchase agreement is a second-hand motor vehicle, the person who intends to enter into the hire-purchase agreement in respect of such second-hand motor vehicle shall declare in writing any defects of the secondhand motor vehicle in accordance with the inspection report by the relevant authority determined by the Controller. (2) For the purpose of subsection (1), “defect” includes defect to the mechanical or operational system, construction, structure and build-up and fitting of the motor vehicle. (3) Any person who contravenes this section shall be guilty of an offence under this Act.

Copy of documents to be served on hirer

s 5

(1) Within twenty-one days after the making of a hire-purchase agreement, the owner shall serve or cause to be served on the hirer and the guarantors a copy of the agreement each. (1a) (Deleted by Act A1384). (2) At any time before the final payment has been made under a hire-purchase agreement the owner shall, within twenty-one days after he has received a request in writing from the hirer, supply to the hirer a copy of any memorandum or note of the agreement— (a) on payment by the hirer of the prescribed fee; or (b) where no fee is prescribed, one free copy, and there after a fee as may be prescribed shall be charged for the supply of a second or subsequent copy thereof. (3) Where any part of the total amount payable consists of an amount paid or to be paid under a policy of insurance in respect of the goods, the owner shall serve or cause to be served on the hirer forthwith a copy of the insurance payment receipt and, within seven days of receipt of the policy, a copy of the policy or statement in writing setting out the terms, conditions and exclusions of the policy that affect the rights of the hirer. (4) Any person who contravenes this section shall be guilty of an offence under this Act.

s 6

(Deleted by Act A813).