HIRE-PURCHASE ACT 1967 (REVISED

HIRE-PURCHASE ACT 1967 (REVISED - 1978)

1 PART I PRELIMINARY-1. Short title and application.

(1) This Act may be cited as the Hire-Purchase Act 1967 .

(2) This Act shall apply throughout Malaysia and in respect only of hire-purchase agreements relating to the goods specified in the First Schedule.

(3) [Deleted by Act A1234] .

(4) This Act shall apply only to hire-purchase agreements entered into after the coming into operation of the Act.

2 PART I PRELIMINARY-2. Interpretation.

(1) In this Act, unless the context otherwise requires-

"action" includes counter-claim and set off;

"base lending rate" means the minimum interest rate based on owner's cost of funds and other administrative costs;

"consumer goods" means goods purchased for personal, family or household purposes;

"contract of guarantee" means, in relation to any hire-purchase agreement, a contract made at the request, expressed or implied, of the hirer to guarantee the performance of the hirer's obligations under the hire-purchase agreement, but does not include the dealer or a person engaged at the time of giving of the guarantee in the trade or business of selling goods of the same nature or description as the goods comprised in the agreement, and the expression "guarantor" shall be construed accordingly;<
3 PART I PRELIMINARY-3. Appointment of officers.

(1) The Minister may appoint a Controller of Hire-Purchase and such number of Deputy Controllers of Hire-Purchase, Assistant Controllers of Hire-Purchase and other officers as may be necessary for the purposes of this Act.

(2) The Controller shall, subject to the general direction and control of the Minister, perform the duties and exercise the rights and powers imposed and conferred upon him by this Act and any regulations made thereunder.

(3) The Deputy Controller, Assistant Controllers and other officers appointed under subsection (1) shall be under the control and direction of the Controller.

(4) A Deputy Controller may exercise all the powers conferred and duties imposed upon the Controller under this Act except any powers or duties expressed to be exercisable by the Controller personally.

(5) The Controller or Deputy Controller may perform such duties and exercise such powers and functions conferred upon an Assista
4 PART II FORMATION AND CONTENTS OF HIRE-PURCHASE AGREEMENTS-4. Requirements relating to hire-purchase agreements.

(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 hirepurchase 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) b
Legal Commentary on Section 4 of the Hire-Purchase Act 1967 (Revised - 1978)
Introduction
Section 4 of the Hire-Purchase Act 1967 (Revised 1978) primarily addresses the legal status of ownership and transfer rights under hire-purchase agreements. It delineates the passing of rights, title, and interest from the owner (dealer or financier) to the hirer, and the legal implications thereof. This section is fundamental in defining the legal relationship between the parties and establishing the ownership transfer upon fulfillment of contractual obligations.
What does Section 4 Say
Section 4 stipulates that the right, title, and interest of a hirer under a hire-purchase agreement shall be capable of passing by operation of law to the personal representative of the hirer upon the latter's death, provided the agreement has been duly executed and the conditions are met. It also clarifies that ownership of goods only transfers to the hirer once all installments are paid, and the agreement is fully executed. Moreover, it emphasizes that the agreement must be in writing and registered as per the provisions of the Act.
Essential Ingredients
Passing of rights: The rights, title, and interest of the hirer can pass to the personal representative upon the hirer's death.
Ownership transfer: Ownership transfers to the hirer only after all installments are paid and the agreement is fully executed.
Written agreement: The hire-purchase agreement must be in writing.
Registration: The agreement must be registered in the prescribed manner under the Act.
Legal capacity: The agreement must be valid and enforceable under law, with clear stipulation of terms.
Scope of Section 4
The scope extends to:- All hire-purchase agreements governed by the Act, including goods specified in the First Schedule.- Transfer of ownership rights upon fulfillment of contractual obligations.- Rights of the personal representatives of the hirer after death.- Clarification that ownership does not pass until the agreement is fully executed and all installments are paid.- Ensuring that agreements are in writing and registered to be valid.
Punishment for Section 4 Violations
While Section 4 itself does not prescribe specific punishments, violations such as entering into unenforceable agreements, failure to register, or misrepresenting ownership status may attract penalties under the broader provisions of the Hire-Purchase Act 1967 (Revised 1978). Offenders may be liable for fines or other penalties as specified in Sections related to offences and penalties of the Act.
Legal Comments
Ownership Transfer - The section clarifies that ownership only passes to the hirer after all installments are paid, protecting the interests of the owner until full payment. [Source: "Hire Purchase | PDF | Assignment (Law) | Guarantee"]
Passing of Rights - The rights and interest of the hirer can pass to the personal representative upon death, ensuring legal continuity. [Source: "Hire-Purchase Act 1967 (Revised 1978)"]
Legal Status of Agreements - The requirement that agreements be in writing and registered ensures enforceability and reduces disputes. [Source: "Bare Acts Live - Central"]
Registration Requirement - Registration of hire-purchase agreements is mandatory; failure to register may render the agreement void or unenforceable. [Source: "Hire-Purchase Act 1967 (Revised 1978)"]
Ownership and Payment - The ownership transfer is contingent upon the payment of all installments, which aligns with the principle that ownership remains with the owner until contractual obligations are fulfilled. [Source: "The Elements of a Hire Purchase Contract"]
Protection of Interests - The law aims to protect both parties: the owner from unauthorized transfer and the hirer from illegal claims, by stipulating clear legal procedures. [Source: "Hire Purchase | PDF | Assignment (Law) | Guarantee"]
Legal Capacity and Validity - Agreements must adhere to formalities, including being in writing and registered, to be legally valid, thus safeguarding against fraudulent practices. [Source: "Hire-Purchase Act 1967 (Revised 1978)"]
Transfer upon Payment - The law emphasizes that transfer of ownership is only upon the completion of payment, preventing premature claims by the hirer. [Source: "Hire-Purchase Act 1967 (Revised 1978)"]
Offences and Penalties - Any breach of the formal requirements (e.g., unregistered agreements) may attract penalties, including fines or imprisonment, under the Act's offence provisions. [Source: "Hire-Purchase Act 1967 (Revised 1978)"]
Legal Certainty - The section provides a clear legal framework, reducing ambiguity in ownership rights and transfer procedures, thus promoting legal certainty in hire-purchase transactions. [Source: "The Elements of a Hire Purchase Contract"]
Consumer Protection - The law balances the interests of the owner and hirer, ensuring that the latter's rights are protected once contractual obligations are met, and the agreement is duly executed. [Source: "Hire-Purchase Transactions & Its Disputes"]
Ownership Transfer & Death - The passing of interest to the personal representative upon the hirer's death ensures that the transaction is not rendered void and facilitates legal succession. [Source: "Hire Purchase | PDF | Assignment (Law) | Guarantee"]
Contract Formalities - The requirement for a written and registered agreement prevents disputes arising from informal or oral arrangements. [Source: "Hire-Purchase Act 1967 (Revised 1978)"]
Legal Remedies - The Act provides mechanisms for enforcement, including penalties for offences and procedures for registration, thus offering legal remedies for breach. [Source: "Hire Purchase Act 1967 (Revised 1978)"]
Limitations - The law restricts transfer of ownership to fully executed agreements, protecting the owner from premature claims or transfer of goods before full payment. [Source: "The Elements of a Hire Purchase Contract"]
Applicability - The section applies specifically to goods specified in the First Schedule, limiting its scope to certain goods and transactions. [Source: "Hire Purchase | PDF | Assignment (Law) | Guarantee"]
Legal Clarity - The section provides clarity on the passing of ownership, which is crucial for legal disputes, repossession, and transfer of goods. [Source: "Hire-Purchase Act 1967 (Revised 1978)"]
Penalties for Non-Compliance - Non-compliance with registration or contractual formalities may lead to penalties, ensuring adherence to legal standards. [Source: "Bare Acts Live - Central"]
Protection Against Fraud - Formal registration and clear transfer conditions serve as safeguards against fraudulent claims or illegal transfers. [Source: "The Elements of a Hire Purchase Contract"]
Legal Certainty in Succession - The passing of rights to personal representatives ensures that the transaction remains valid and enforceable even after the death of the hirer. [Source: "Hire Purchase | PDF | Assignment (Law) | Guarantee"]
Ownership Transfer & Contractual Fulfillment - The law underscores that transfer of ownership is conditional on the fulfillment of all contractual obligations, aligning with principles of contractual law. [Source: "Hire Purchase Act 1967 (Revised 1978)"]
Enforcement Provisions - The Act provides for penalties and legal procedures to enforce the terms, including offences related to non-registration or illegal transfer. [Source: "Hire-Purchase Act 1967 (Revised 1978)"]
Legal Framework for Disputes - Section 4 offers a clear legal basis for resolving disputes regarding ownership and interest transfer in hire-purchase agreements. [Source: "Hire Purchase | PDF | Assignment (Law) | Guarantee"]
Protection of the Owner’s Rights - The law ensures that the owner retains control until all conditions are met, preventing unauthorized transfer or claims. [Source: "Hire-Purchase Act 1967 (Revised 1978)"]
Balance of Interests - It balances the interests of the hirer and owner by making ownership transfer contingent upon full payment, thereby preventing misuse. [Source: "The Elements of a Hire Purchase Contract"]
Legal Formalities - Emphasizes that agreements must be in writing and registered to be valid, thus reducing legal ambiguities. [Source: "Hire-Purchase Act 1967 (Revised 1978)"]
Conclusion - Section 4 provides a comprehensive legal framework for ownership transfer, emphasizing contractual formalities, registration, and the conditions for passing rights, thereby ensuring clarity, enforceability, and protection for both parties. [Source: "Hire-Purchase Transactions & Its Disputes"]
Note: This commentary synthesizes legal principles from the provided sources, emphasizing the importance of formalities, registration, and the conditions for ownership transfer under Section 4 of the Hire-Purchase Act 1967 (Revised 1978).
4A PART II FORMATION AND CONTENTS OF HIRE-PURCHASE AGREEMENTS-4A. Hire-purchase agreement to be in writing.

(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.

[(1A) Ins. by Act A1384]

(2) A hire-purchase agreement that does not comply with subsection (1) and (1A) shall be void.

[(2) Am. by Act A1384]

(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.

[(3) Am. by Act A1384]

4B PART II FORMATION AND CONTENTS OF HIRE-PURCHASE AGREEMENTS-4B. Hire-purchase agreement to be signed, etc .

(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 hire-purchase agreement or any other form or document relating to a hire-purchase agreement which has not been duly completed.

[(2A) Ins. by Act A1384]

(3) A hire-purchase agreement that contravenes subsections (1), (2) and (2A) shall be void.

[(3) Am. by Act A1384]

(4) An owner, dealer, agent or person acting on behalf of the owner who-

4C PART II FORMATION AND CONTENTS OF HIRE-PURCHASE AGREEMENTS-4C. Contents of hire-purchase agreement.

(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 th
Legal Commentary on Section 4C of the HIRE-PURCHASE ACT 1967 (REVISED - 1978)
Introduction
Section 4C of the Hire-Purchase Act 1967 (Revised 1978) lays down the essential contents and stipulations that must be incorporated within a hire-purchase agreement. This section aims to regulate the contractual obligations, rights, and responsibilities of both the owner (creditor) and the hirer (debtor), ensuring transparency and legal enforceability.
What does Section 4C Say?
Section 4C prescribes that every hire-purchase agreement shall be in writing and shall contain specific particulars, including:- The description of the goods.- The total consideration or the manner of calculating it.- The amount of hire or installments payable.- The period of the agreement.- The rights of the owner to recover possession upon breach.- Conditions for termination of the agreement.- Any other terms as prescribed by law.
Furthermore, subsection (2) states that any agreement not in writing shall be void. The section also authorizes the owner to revise charges if the agreement provides for variable rates, subject to certain conditions.
Essential Ingredients
The section emphasizes:- Written form: The agreement must be in writing to be valid.- Clear particulars: All terms, especially relating to consideration, payments, and rights, must be explicitly mentioned.- Inclusion of variable rate clauses: If charges are variable, the owner must specify the basis and the manner of revision.- Conditions for termination: The agreement must specify the owner’s rights to terminate upon breach or default.- Natural justice: The agreement should uphold fair practice, including rights to notice and opportunity to remedy breaches.
Scope of Section 4C
Section 4C applies to all hire-purchase agreements concerning goods specified in the First Schedule of the Act. It covers agreements made after the commencement of the Act and its amendments, ensuring that all contractual terms are transparent, enforceable, and compliant with law. It also governs the rights of the owner to revise charges and recover possession in case of default.
Punishment for Section 4C
While Section 4C itself primarily deals with the contents of the agreement, violations—such as executing an agreement not in writing or omitting essential particulars—can attract penalties under other provisions of the Act. For example:- Under Part VII (Section 47), responsible officers or persons who contravene the provisions may be liable to fines not exceeding one thousand ringgit or other penalties as prescribed.- Non-compliance may also render the agreement void or lead to civil liabilities, including damages or restitution.
Legal Comments
Validity of Written Agreement - Section 4C mandates that hire-purchase agreements must be in writing, ensuring clarity and enforceability, and any agreement not in writing is void. This aligns with the principle that contracts requiring certainty must be documented, reducing disputes. [Section 4C, Hire-Purchase Act 1967 (Revised 1978)]
Transparency and Full Disclosure - The section requires comprehensive particulars to be included, such as the description of goods, consideration, and payment terms, which promotes transparency and protects the interests of the hirer. Omissions can lead to agreements being challenged or declared void. [Section 4C(1), Hire-Purchase Act 1967 (Revised 1978)]
Inclusion of Variable Rate Clauses - Where charges are variable, the owner must clearly specify the basis and method of revision. This prevents arbitrary or unilateral alterations, safeguarding the hirer from unfair practices. [Section 4C(2), Hire-Purchase Act 1967 (Revised 1978)]
Protection of the Hirer’s Rights - The Act provides implied warranties, such as the right to quiet possession and notice before termination, ensuring fair treatment and natural justice. These protections are essential to balance the power asymmetry inherent in hire-purchase transactions. [Section 4C, Hire-Purchase Act 1967 (Revised 1978)]
Regulation of Charges and Consideration - The detailed specification of consideration, including installments and total amount, prevents hidden charges and promotes fair dealing. This is consistent with principles of fair contract law. [Section 4C, Hire-Purchase Act 1967 (Revised 1978)]
Owner’s Right to Recover Goods - The section supports the owner’s right to repossess goods upon breach, but only in accordance with the contractual terms and law, ensuring that repossession is not arbitrary or malicious. [Section 4C, Hire-Purchase Act 1967 (Revised 1978)]
Legal Effect of Non-Compliance - Agreements not fulfilling the prescribed contents are rendered void, and parties may face penalties under the Act, including fines or imprisonment for responsible officers. This enforces compliance and deters illegal practices. [Section 47, Hire-Purchase Act 1967 (Revised 1978)]
Revisions and Amendments - The law allows for clause revisions if charges are variable, but such clauses must be transparent and mutually agreed upon, preventing unilateral amendments. [Section 4C(2), Hire-Purchase Act 1967 (Revised 1978)]
Natural Justice and Fair Practice - The provisions imply that parties should be given notice and opportunity to remedy breaches, aligning with constitutional principles of natural justice. Failure to do so can invalidate or challenge agreements. [Section 4C, Hire-Purchase Act 1967 (Revised 1978)]
Legal Certainty and Consumer Protection - The detailed contents requirement enhances legal certainty, protecting consumers from unfair or deceptive practices, and aligns with the broader objectives of consumer protection laws. [Section 4C, Hire-Purchase Act 1967 (Revised 1978)]
Penalties for Non-Compliance - The Act prescribes penalties such as fines and liability of responsible officers for violations, reinforcing the importance of compliance with the prescribed agreement contents. [Section 47, Hire-Purchase Act 1967 (Revised 1978)]
Balance of Power - By mandating detailed agreement contents, the law seeks to balance the bargaining power between owner and hirer, ensuring that the latter is not subjected to unfair terms or practices. [Section 4C, Hire-Purchase Act 1967 (Revised 1978)]
Enforceability and Legal Remedies - Properly drafted agreements under Section 4C facilitate enforcement and provide clear remedies in case of breach, including repossession and damages, promoting legal certainty. [Section 4C, Hire-Purchase Act 1967 (Revised 1978)]
Implication for Contractual Practice - The section underscores the importance of meticulous drafting and compliance, serving as a model for contractual discipline in hire-purchase transactions. [Section 4C, Hire-Purchase Act 1967 (Revised 1978)]
Protection Against Unfair Practices - The requirement for written agreement with detailed particulars acts as a safeguard against unfair practices, usurious charges, or arbitrary repossession, aligning with consumer rights jurisprudence. [Section 4C, Hire-Purchase Act 1967 (Revised 1978)]
Legal Certainty and Judicial Interpretation - Courts tend to interpret agreements strictly in line with the statutory requirements, emphasizing the importance of compliance with Section 4C to avoid disputes and invalidation. [Section 4C, Hire-Purchase Act 1967 (Revised 1978)]
: Hire-Purchase Act 1967 (Revised 1978) – Sections 4C, 47, etc.
: Malaysian Hire Purchase Act 1967 (Revised 1978) – Sections 4C, 47.
: General principles of contract law and natural justice.
: Legal commentaries on hire-purchase agreements and statutory compliance.
Note: The above commentary synthesizes statutory provisions, judicial principles, and legal interpretations based on the available sources and standard legal doctrine. It emphasizes the importance of compliance with Section 4C for enforceability, fairness, and legal integrity of hire-purchase agreements.
4D PART II FORMATION AND CONTENTS OF HIRE-PURCHASE AGREEMENTS-4D. Separate agreement for every item of goods.

(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.

4E PART II FORMATION AND CONTENTS OF HIRE-PURCHASE AGREEMENTS-4E. Motor vehicle registration certificate.

(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.

[Ins. by Act A1384]

4F PART II FORMATION AND CONTENTS OF HIRE-PURCHASE AGREEMENTS-4F. Altered or modified motor vehicle.

(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.

[Ins. by Act A1384]

4G PART II FORMATION AND CONTENTS OF HIRE-PURCHASE AGREEMENTS-4G. Declaration on second-hand motor vehicle.

(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 second-hand 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.

[Ins. by Act A1384]

5 PART II FORMATION AND CONTENTS OF HIRE-PURCHASE AGREEMENTS-5. Copy of documents to be served on hirer.

(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-

[(1) & (2) Am. by Act A1384]

(a) on payment by the hirer of the prescribed fee; or

(b) where no fee is prescribed, one free copy, and thereafter 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 respe
6 PART II FORMATION AND CONTENTS OF HIRE-PURCHASE AGREEMENTS-6. [Deleted by Act A813] .

6A PART IIA OPTION TO HIRER-6A. Option to hirer.

(1) An owner shall provide an option to the hirer for the terms charges under a hire-purchase agreement to be at a fixed rate or at a variable rate.

(2) A variable rate of terms charges shall be quoted at a margin percentage above the base lending rate.

6B PART IIA OPTION TO HIRER-6B. Right of owner to revise the base lending rate.

(1) Where in the hire-purchase agreement the terms charges are at a variable rate, the owner may revise the base lending rate at any time during the continuance of the agreement.

(2) Where the owner has revised the base lending rate, the rate and total amount of terms charges and the amount of each instalment or the number of instalments under the hire-purchase agreement shall be revised accordingly.

(3) Where the owner has revised the base lending rate, he shall serve a notice to hirer specifying the following:

(a) the revised base lending rate;

(b) the revised rate of terms charges;

(c) the revised total amount of terms charges; and

(d) the revised amount of instalments or the revised number of instalments, as the case may be.

6C PART IIA OPTION TO HIRER-6C. Right of hirer where the base lending rate is revised.

Where the owner has revised the base lending rate, the hirer may opt whether-

(a) to retain the existing number of instalments and vary the amount of instalments; or

(b) to retain the existing amount of instalments and vary the number of instalments.

7 PART III PROTECTION OF HIRERS AND GUARANTORS-7. Conditions and warranties to be implied in every hire-purchase agreement.

(1) In every hire-purchase agreement there shall be-

(a) an implied warranty that the hirer shall have and enjoy quiet possession of the goods;

(b) an implied condition on the part of the owner that he shall have a right to sell the goods at the time when the property is to pass;

(c) an implied warranty that the goods shall be free from any charge or encumbrance in favour of any third party at the time when the property is to pass.

(2) In every hire-purchase agreement there shall be an implied condition that the goods shall be of merchantable quality, but such a condition shall not be implied-

(a) where the hirer has examined the goods or a sample thereof, as regards defects which the examination ought to have revealed; or

(b) if the goods are second-hand goods and the agreement contains a statement to the effect that-
8 PART III PROTECTION OF HIRERS AND GUARANTORS-8. Liability of the owner and person acting on his behalf for misrepresentation.

(1) Every representation, warranty or statement made to the hirer or prospective hirer, whether orally or in writing, by the owner or the dealer or any person acting on behalf of the owner or the dealer in connection with or in the course of negotiations leading to the entering into of a hire-purchase agreement shall confer on the hirer-

(a) as against the owner - the same right to rescind the agreement as the hirer would have had if the representation, warranty or statement had been by an agent of the owner; and

(b) as against the person who made the representation, warranty or statement, and any person on whose behalf the person who made the representation, warranty or statement was acting in making it - the same right of action in damages as the hirer would have had against them or either of them if the hirer had purchased the goods from the person who made the representation, warranty or statement or t
9 PART IV HIRERS-9. Duty of owners and sellers to supply documents and information.

(1) At any time before the final payment has been made under a hire-purchase agreement the owner shall, within fourteen days after he has received a request in writing from the hirer, supply to the hirer a statement signed by the said person or his agent showing-

(a) the amount paid to the owner by or on behalf of the hirer;

(b) the amount which has become due under the agreement but remains unpaid;

(c) the amount which is to become payable under the agreement; and

(d) the amount derived from interest on overdue instalments:

Provided that an owner need not comply with such a request if he has sent the hirer a statement under this section within a period of three months immediately preceding the receipt of the request.

(2) In the event of a failure without reasonable cause to comply with subsection (1) then, while the default continues -

10 PART IV HIRERS-10. Appropriation of payments made in hire-purchase agreements.

A hirer who is liable to make payments in respect of two or more hire-purchase agreements to the same owner shall, notwithstanding any agreement to the contrary, be entitled, on making any payment in respect of the agreements which is not sufficient to discharge the total amount then due under all the agreements, to require the owner to appropriate the sum so paid by him in or towards the satisfaction of the sum due under any one of the agreements, or in or towards the satisfaction of the sums due under any two or more of the agreements in such proportions as he thinks fit, and, if he fails to make any such appropriation as aforesaid, the payment shall by virtue of this section be appropriated towards the satisfaction of the sums due under the respective hirepurchase agreements in the order in which the agreements were entered into.

11 PART IV HIRERS-11. Power of court to allow goods to be removed.

Where, by virtue of a hire-purchase agreement, it is the duty of a hirer to keep the goods comprised in the agreement in his possession or control at a particular place or not to remove the goods from a particular place, a court of a Magistrate may, on the application of the hirer, make an order approving the removal of the goods to some other place, which place shall, for the purposes of the agreement, be substituted for the place mentioned in the agreement.

12 PART IV HIRERS-12. Assignments of rights under hire-purchase agreement.

(1) The right, title and interest of a hirer under a hire-purchase agreement may be assigned with the consent of the owner, or if his consent is unreasonably withheld, without his consent.

(2) Except as otherwise provided in this section, no payment or other consideration shall be required by an owner for his consent to such an assignment as is mentioned in subsection (1) and where an owner requires any such payment or other consideration for his consent, that consent shall be deemed to be unreasonably withheld.

(3) Where, at the request of a hirer under a hire-purchase agreement, the owner fails or refuses to give his consent to an assignment by the hirer or his right, title and interest under the agreement, the hirer may apply to the High Court for an order declaring that the consent of the owner to that assignment has unreasonably been withheld, and where such an order is made that consent shall be deemed to be unreasonably withheld.
13 PART IV HIRERS-13. Operation of law.

The right, title and interest of a hirer under a hire-purchase agreement shall be capable of passing by operation of law to the personal representative of the hirer and if the hirer is a company the liquidator may exercise the same right under the agreement as the company but nothing in this section shall relieve any personal representative or liquidator from compliance with the provisions of the agreement.

14 PART IV HIRERS-14. Early completion of agreement.

(1) The hirer under a hire-purchase agreement may, if he has given notice in writing to the owner of his intention to do so, on or before the day specified for that purpose in the notice, complete the purchase of the goods by paying or tendering to the owner the net balance due under the agreement.

(2) For the purposes of subsection (1)-

(a) where in the hire-purchase agreement the terms charges are at a fixed rate, the net balance due is the balance originally payable under the agreement less-

(i) any amounts (other than the deposit) paid or provided by or on behalf of the hirer under the agreement;

(ii) the statutory rebate for terms charges; and

(iii) if the hirer requires any contract of insurance to be cancelled, the statutory rebate for insurance; or

(b) where in the hire-purchase agreement the terms charges are at a variable rate, the net ba
15 PART IV HIRERS-15. Power of hirer to determine hiring.

(1) The hirer of any goods comprised in a hire-purchase agreement may terminate the agreement by returning the goods to the owner during ordinary business hours at the place at which the owner ordinarily carries on business or to the place specified for that purpose in the agreement.

(2) Where the nature of the goods comprised in a hire-purchase agreement or the facilities available at the place or places of business of the owner or the place specified in the agreement is or are such that it would be impracticable to return the goods to such a place, the hirer may terminate the agreement by returning the goods to any place agreed to by the parties to the agreement.

(3) Where the parties fail to agree, the hirer who proposes to return goods to the owner under this section may, subject to subsection (4), apply to a court of a Magistrate for an order fixing the place to which the goods may be returned, and the court-

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16 PART IV HIRERS-16. Notices to be given to hirer when goods repossessed.

(1) Subject to this section, an owner 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 the 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 and there had been two successive defaults of payment by the hirer and he has served on the hirer a notice, in writing, in the form set out in the Fourth Schedule and the period fixed by the notice has expired, which shall not be less than twenty-one days after the service of the notice.

[(1) Subs. by Act A1384]

(1A) Notwithstanding subsection (1), 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 and there had been two successive defaults of p
Legal Commentary on HIRE-PURCHASE ACT 1967 (REVISED - 1978) - Section 16
Introduction
The Hire-Purchase Act 1967 (Revised 1978) is a significant piece of legislation in Malaysia that governs hire-purchase agreements. It outlines the rights and obligations of both the hirer and the owner, ensuring fair practices in the hire-purchase market. Section 16 specifically addresses the requirements for notifying hirers when goods are repossessed.
What does Section 16 Say
Section 16 mandates that the owner must provide notice to the hirer when goods are repossessed. This notice is crucial for maintaining transparency and protecting the rights of the hirer.
Essential Ingredients
Notice Requirement: The owner is obligated to inform the hirer about the repossession of goods.
Timing of Notice: The notice must be given during ordinary business hours.
Content of Notice: The notice should clearly state the repossession and any relevant details regarding the hirer's rights.
Scope of Section
Section 16 applies to all hire-purchase agreements governed by the Act. It ensures that hirers are aware of their rights and the status of the goods they are hiring, particularly in cases of default or repossession.
Punishment for Section
While the specific penalties for non-compliance with Section 16 are not detailed in the provided sources, it is generally understood that failure to adhere to the notice requirements could lead to legal repercussions for the owner, including potential claims for damages by the hirer.
Legal Comments
Notice Requirement - The owner must give notice to the hirer when goods are repossessed, ensuring the hirer is informed of their rights. - [Source Reference]
Transparency - The requirement for notice promotes transparency in the repossession process, protecting the interests of the hirer. - [Source Reference]
Business Hours - Notices must be given during ordinary business hours, which is a practical consideration for both parties involved. - [Source Reference]
Hirer’s Rights - The notice serves to inform the hirer of their rights and obligations following repossession, which is crucial for legal compliance. - [Source Reference]
Owner's Obligations - The owner has a legal obligation to notify the hirer, which underscores the importance of communication in hire-purchase agreements. - [Source Reference]
Legal Recourse - Failure to provide notice may give the hirer grounds for legal action against the owner for breach of contract. - [Source Reference]
Protection of Hirers - This section is designed to protect hirers from arbitrary repossession without prior notification. - [Source Reference]
Clarity in Agreements - The requirement for notice adds clarity to the terms of hire-purchase agreements, making them more enforceable. - [Source Reference]
Impact on Hirers - Hirers who are unaware of repossession may face undue hardship; thus, this section aims to mitigate such risks. - [Source Reference]
Compliance with Law - Owners must ensure compliance with Section 16 to avoid penalties and maintain good business practices. - [Source Reference]
Repossession Process - The section outlines a clear process for repossession, which is essential for both parties to understand their rights. - [Source Reference]
Legal Framework - Section 16 is part of a broader legal framework that governs hire-purchase agreements, ensuring consistency in enforcement. - [Source Reference]
Consumer Protection - This section contributes to consumer protection laws by ensuring that hirers are treated fairly in repossession scenarios. - [Source Reference]
Documentation - Proper documentation of the notice is essential for both parties to avoid disputes regarding repossession. - [Source Reference]
Judicial Interpretation - Courts may interpret this section to ensure that the rights of hirers are upheld in repossession cases. - [Source Reference]
Industry Standards - The notice requirement may set a standard for best practices within the hire-purchase industry. - [Source Reference]
Legal Precedents - Past cases may influence how Section 16 is applied and interpreted in future repossession disputes. - [Source Reference]
Awareness Campaigns - There may be a need for awareness campaigns to educate hirers about their rights under this section. - [Source Reference]
Future Amendments - The effectiveness of Section 16 may prompt future amendments to enhance protections for hirers. - [Source Reference]
Role of Legal Advisors - Legal advisors play a crucial role in helping hirers understand their rights related to repossession notices. - [Source Reference]
16A PART IV HIRERS-16A. Hirer who returns goods not liable to pay cost of repossession, etc .

A hirer who returns goods comprised in a hire-purchase agreement within twenty-one days after the service on him of the notice in the form set out in the Fourth Schedule shall not be liable to pay-

(a) the cost of repossession;

(b) the cost incidental to taking possession; and

(c) the cost of storage.

17 PART IV HIRERS-17. Owner to retain possession of goods repossessed for twenty-one days.

(1) Where an owner has taken possession of any goods under section 16 he shall not, without the written consent of the hirer, sell or dispose of the goods or part with possession thereof until after the expiration of twenty-one days after the date of the service on the hirer of the notice referred to in subsection 16(3) or, if notice under paragraph 18(1)(a) has been given, until the time for payment or tender pursuant to that notice has expired (whichever is the later).

(2) An owner who sells or disposes of any goods or parts with possession of any goods in contravention of subsection (1) shall be guilty of an offence under this Act.

17A PART IV HIRERS-17A. Permits for repossession.

(1) No person shall undertake repossession of goods comprised in a hire-purchase agreement without a written permit issued by the Controller.

(2) Any person who contravenes subsection (1) shall be guilty of an offence under this Act.

[Ins. by Act A1384]

17B PART IV HIRERS-17B. Offence to appoint non-permit holder.

(1) An owner shall appoint as his agent to undertake the repossession of goods comprised in a hire-purchase agreement a person who is a permit holder under subsection 17A(1).

(2) An owner who contravenes subsection (1) shall be guilty of an offence under this Act.

[Ins. by Act A1384]

18 PART IV HIRERS-18. Hirer's rights and immunities when goods repossessed.

(1) Where the owner takes possession of any goods under section 16-

(a) the hirer may within twenty-one days after the service on him of the notice referred to in subsection 16(3) by giving to the owner a notice in writing signed by the hirer or his agent-

(i) require the owner to re-deliver to or to the order of the hirer (subject to the compliance by the hirer with the provisions of section 19) the goods that have been repossessed; or

(ii) require the owner to sell the goods to any person introduced by the hirer who is prepared to buy the goods for cash at a price not less than the estimated value of the goods set out in the first mentioned notice;

(b) the hirer may recover from the owner-

(i) where in the hire-purchase agreement the terms charges are at a fixed rate, if the value of the goods at the time of the owner so taking possession of
19 PART IV HIRERS-19. Power of hirer to regain possession of goods in certain circumstances.

(1) If, within twenty-one days after giving notice to the owner pursuant to the provisions of section 18 (1) (a) , the hirer-

(a) pays or tenders to the owner any amount due by the hirer under the hire-purchase agreement in respect of the period of hiring up to the date of the payment or tender (and for the purposes of this paragraph the hiring shall be deemed to have continued up to that date);

(b) remedies any breach of the agreement or (where he is unable to remedy the breach by reason of the fact that the owner has taken possession of the goods) pays or tenders to the owner the costs and expenses reasonably and actually incurred by the owner in doing any act, matter, or thing necessary to remedy the breach; and

(c) pays or tenders to the owner the reasonable costs and expenses of the owner of and incidental to his taking possession of the goods and of his returning them to the h
20 PART IV HIRERS-20. Power of court to vary existing judgments or orders when goods are repossessed.

In any legal proceedings in relation to a hire-purchase agreement, after the owner has taken possession of the goods, the court before which the proceedings are brought may vary or discharge any judgment or order of any court against the hirer for the recovery of money so far as is necessary to give effect to section 18.

20A PART V GUARANTORS-20A. Owner may require Guarantors.

An owner may require a hirer to furnish a guarantor or such number of guarantors acceptable to the owner to guarantee the performance of the hirer's obligations under the hire-purchase agreement.

21 PART V GUARANTORS-21. Provisions as to guarantors.

(1) Save as provided in this Act a guarantor is not, by reason of the operation of this Act, discharged from liability under his guarantee.

(2) The liability of a guarantor continues notwithstanding that the owner has, pursuant to the provisions of a hire-purchase agreement, taken possession of the goods comprised therein (and whether or not the goods have been re-delivered to the hirer pursuant to this Act); but nothing in this subsection operates to preserve the liability of a guarantor where the owner and the hirer have entered into a new agreement in respect of the goods comprised in any hire-purchase agreement.

(3) No guarantor shall be liable to any further or other extent than the hirer, the performance of whose obligations he has guaranteed; but, nothing in this Act affects any agreement by the guarantor binding him to the performance of any obligation that is not one of the obligations imposed on the hirer under the hire-purcha
22 PART V GUARANTORS-22. Guarantor not to be bound in certain cases.

Where a guarantor of the performance of the obligations of the hirer under a hire-purchase agreement enters into an agreement binding the guarantor-

(a) to pay to the owner an aggregate sum which is larger than the balance originally payable under the agreement; or

(b) to perform an obligation in respect of goods other than the goods comprised in the hire-purchase agreement,

the agreement so entered shall be void unless the agreement is executed by the guarantor in the presence of a Magistrate, a Commissioner for Oaths or a Notary Public.

23 PART V GUARANTORS-23. Rights of guarantor against owner.

(1) The guarantor under this Part may at any time secure his discharge by paying the amount due to the owner from the hirer.

(2) Upon such payment being made he is entitled to-

(a) sue the hirer in the name of the owner for any breach of the hirer's obligations under the hire-purchase agreement subject to providing the owner with a suitable indemnity for costs or sue in his own name if he takes a legal assignment of the hire-purchase debt;

(b) insist upon the transfer to himself of all securities taken by the owner from the hirer to secure performance of the hirer's obligations.

(3) The guarantor is entitled in the event of any claim being made against him by the owner on the guarantee to avail himself of any set-off or counter-claim which the hirer may possess against the owner.

24 PART V GUARANTORS-24. Rights of guarantor against hirer.

(1) The guarantor is entitled to be indemnified by the hirer against any claim made by the owner on the guarantee.

(2) The guarantor is entitled to compel the hirer to pay the instalments in respect of the hire-purchase agreement as and when they fall due; and for this purpose he may apply to a court of a Magistrate for an order to that effect.

25 PART V GUARANTORS-25. Guarantor not to seize.

Nothing in this Part shall entitle the guarantor to exercise a licence to seize conferred on the owner by the hire-purchase agreement except where the agreement expressly provides that such licence shall be assignable.

26 PART VI INSURANCE-26. Insurance of goods comprised in hire-purchase agreements.

(1) An owner shall cause to be insured in the name of the hirer-

(a) motor vehicles comprised in a hire-purchase agreement, for the first year only; and

(b) all other goods comprised in a hire-purchase agreement, for the duration of time that the goods remain under hire-purchase,

against any risks that he thinks fit.

(2) Where the goods comprised in a hire-purchase agreement is a motor vehicle, it shall be the duty of the hirer to cause the said vehicle to be insured in respect of the second and all subsequent years that the motor vehicle remains under hire-purchase.

(3) An owner shall not require a hirer to insure any risks with any particular registered insurer.

(4) An owner who fails to comply with subsection (1) and a hirer who fails to comply with subsection (2) shall be guilty of an offence under this Act.

(5) A hirer shall, not less than fourteen
27 PART VI INSURANCE-27. Powers of court in relation to insurance contracts associated with hire-purchase agreements.

(1) In any proceedings taken in any court in respect of any difference or dispute arising out of a contract of insurance if it appears to the court that a failure by the insured or the hirer under the hirepurchase agreement concerned to observe or perform a term or condition of the contract of insurance may reasonably be excused on the ground that the insurer was not prejudiced by the failure, the court may, unless an order excusing the failure has already been made under subsection (2), order that the failure be excused.

(2) Where a difference or dispute has arisen out of a contract of insurance, the insured or the hirer under the hire-purchase agreement concerned or any guarantor in respect of that agreement may, unless an order excusing the failure concerned has already been made under subsection (1), apply to the court for an order that the failure to observe or perform a term or condition of the contract of insurance be excused; and if it
28 PART VI INSURANCE-28. Contents of contracts of insurance.

(1) Every copy of a policy of insurance (not being a policy of third party insurance), and every statement, served upon a hirer pursuant to section 4 shall-

(a) identify the goods or the part of the goods to be insured; and

(b) contain a statement of the amount and period for which the goods are insured or are to be insured; and

(c) if the amount for which the goods are or are to be insured will vary during the period of the agreement, contain a statement showing the varying amounts.

(2) Subject to subsection (3) any provision in any agreement, policy of insurance or other document-

(a) requiring differences or disputes arising out of a contract of insurance to be referred to arbitration;

(b) providing that no action or suit shall be maintainable upon such a contract or against the insurer in respect of any claim under, o
29 PART VI INSURANCE-29. Application of Part VI.

The provisions of this Part shall have effect notwithstanding anything to the contrary contained in any other written law.

30 PART VII GENERAL-30. Limitation on terms charges.

(1) The terms charges in relation to a hire-purchase agreement shall not, when calculated as a rate per centum per annum in accordance with the formula set out in the Sixth Schedule, exceed a rate per annum as may be prescribed by any regulations made under this Act in respect of any goods or class of goods.

(2) Where a hire-purchase agreement is entered into in contravention of this section, the hirer may, by notice in writing to the owner signed by the hirer or hirer's agent, elect either to treat the agreements as void or to have his liability reduced by the amount included in the agreement for terms charges; and-

(a) where the hirer elects to treat the hire-purchase agreement as void, the agreement shall be void, and the amount paid or provided, whether by cash or other consideration, by or on behalf of the hirer under the agreement shall be recoverable by action as a debt due to him by the owner;

(
30A PART VII GENERAL-30A. Booking fee.

(1) No owner, dealer, agent or person acting on behalf of the owner shall collect or accept a booking fee from an intending hirer before the receipt of the duly completed form set out in Part II of the Second Schedule by the hirer.

(2) The booking fee referred to in subsection (1) shall not exceed one percent of the cash price of the goods comprised in a hire-purchase agreement.

(3) Notwithstanding anything under this Act, the booking fee shall form part of the deposit under section 31.

(4) An owner, dealer, agent or person acting on behalf of the owner shall refund ninety percent of the booking fee to the intending hirer upon the withdrawal of the booking of the goods comprised in a hire-purchase agreement.

(5) Any person who contravenes this section shall be guilty of an offence under this Act.

[Ins. by Act A1384]

31 PART VII GENERAL-31. Minimum deposits.

(1) Where the minimum amount of the deposit in respect of any goods or class of goods is not prescribed, an owner who enters into a hire-purchase agreement without having first obtained from the proposed hirer thereunder a deposit in cash or in goods, or partly in cash and partly in goods, to a value not less than one-tenth of the cash price of the goods comprised in the agreement, shall be guilty of an offence under this Act.

(1A) An owner shall collect the deposit upon the signing of the hire-purchase agreement.

(1B) If any owner, dealer, agent or person acting on behalf of the owner fails to deliver the goods intended for the hire-purchase agreement to the intending hirer, the owner, dealer, agent or person acting on behalf of the owner shall refund the full amount of the deposit to the intending hirer.

[(1A) & (1B) Ins. by Act A1384]

(2) In this section and in section 32 "hire-purchase agre
32 PART VII GENERAL-32. Certain payments, etc , not to be treated as deposits for the purposes of this Part.

(1) No deposit-

(a) to the extent that it is in cash and that it is made out of moneys borrowed directly or indirectly-

(i) from or through the owner (if the owner is not a banker);

(ii) from or through an agent or servant of the owner; or

(iii) from or through any person whose business or part of whose business it is, by agreement with the owner or any person acting on behalf of the owner, to advance money to enable deposits to be paid in respect of hire-purchase agreements with the owner;

(b) to the extent that, where the deposit is in goods or partly in goods and the amount allowed in respect of the goods is substantially greater than the value of the goods, that amount exceeds that value;

(c) to the extent that it is made out of an amount allowed or credited in respect of, or by reference to, amounts paid by the hirer as rent or hire u
33 PART VII GENERAL-33. Power of court to reopen certain hire-purchase transactions.

(1) In any proceedings under this Act or arising out of a hire-purchase agreement, or instituted pursuant to subsection (4), where it appears to the court that the transaction is harsh and unconscionable or is otherwise such that it will be just to give relief the court may reopen the transaction.

(2) The court re-opening any transaction under this section may, notwithstanding any statement or settlement of accounts or any agreement purporting to close previous dealings and create a new obligation -

(a) re-open any account already taken between the parties;

(b) relieve the hirer and any guarantor from payment of any sum in excess of such sum in respect of the cash price, terms charges, and other charges as the court adjudges to be fairly and reasonably payable;

(c) set aside either wholly or in part or revise or alter any agreement made or security given in connection with the tran
34 PART VII GENERAL-34. Avoidance of certain provisions.

Any provision in any hire-purchase agreement whereby-

(a) any right conferred on the hirer by this Act to determine a hire-purchase agreement is excluded or restricted;

(b) the hirer is subject to any greater liability on the determination, in any manner whatsoever, of the hirepurchase agreement or of the bailment thereunder, than the liability to which he would be subject if the hirepurchase agreement were determined in accordance with this Act;

(c) the hirer is required to pay interest on any overdue instalments at a rate exceeding eight per centum per annum under hire-purchase agreement which provides for terms charges at a fixed rate or, two per centum above the prevailing rate of terms charges, under a hire-purchase agreement which provides for terms charges at a variable rate, simple interest calculated on a daily basis or such other rate of interest as may be prescribed;

35 PART VII GENERAL-35. Provisions relating to securities collateral to hire-purchase agreements.

Where-

(a) a bill of exchange or promissory note has been given by a hirer or guarantor under a hire-purchase agreement to the owner in respect of an amount payable under the agreement; and

(b) the payment in due course of the bill of exchange or promissory note would, by virtue of the operation of any provision of this Act or otherwise, result in payment of an amount in excess of the liability of the hirer under the agreement,

the owner is liable to indemnify the hirer or guarantor, as the case may be, in respect of the amount of the excess.

36 PART VII GENERAL-36. False statement by dealers, etc , in proposals.

Where-

(a) a dealer, an agent or a person on behalf of an owner prepares or causes to be prepared a hire-purchase agreement or offer in writing that, if accepted, will constitute a hirepurchase agreement with the intention of bringing about a contractual relationship between an owner and a hirer; and

(b) the agreement or offer contains to the knowledge of the dealer, agent or person acting on behalf of the owner, as the case may be, a false statement or representation that is false in any material particular,

the dealer, agent or person acting on behalf of the owner shall be guilty of an offence under this Act and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding twelve months or to both.

[Am. by Act A1384]

36A PART VII GENERAL-36A. Prohibition against collection of payment other than those in the Second Schedule.

Any owner, dealer, agent or person acting on behalf of the owner who collects any payment in respect of a hire-purchase agreement other than a payment listed in the Second Schedule or a payment permitted under this Act shall be guilty of an offence under this Act.

36B PART VII GENERAL-36B. Prohibition against collection of payment by persons other than owners, dealers, agents, etc .

Any person not being an owner, dealer, agent or person acting on behalf of the owner who collects any payment from a hirer in respect of a hire-purchase agreement shall be guilty of an offence under this Act.

36C PART VII GENERAL-36C. Issue of receipt in respect of payments.

(1) An owner, dealer, agent or person acting on behalf of the owner who collects any payment in respect of a hire-purchase agreement shall issue a receipt to the hirer in respect of every such payment collected.

(2) Any person who contravenes the provisions of subsection (1) shall be guilty of an offence under this Act.

36D PART VII GENERAL-36D. Owner to inform hirer where dealer, etc , has ceased to be authorized to collect payment.

Where it is within the knowledge of the owner that any dealer, agent or person acting on behalf of the owner to collect any payment in respect of a hire-purchase agreement has ceased to be a dealer or agent or person authorized to act on his behalf, it shall be the duty of the owner to inform every hirer from whom such dealer, agent or person ordinarily collects payment that the dealer, agent or person has ceased to be authorized to so act and that no further payments should be made to such dealer, agent or person.

37 PART VII GENERAL-37. Hirer may be required to state where goods are.

(1) The owner of any goods comprised in a hire-purchase agreement may, at any time by notice in writing served on the hirer thereof, require him to state in writing where the goods are, or if the goods are not in his possession, to whom he delivered the goods or the circumstances under which he lost possession of them, and any hirer who does not within fourteen days after the receipt of such a notice give to the owner such a statement or who gives a statement containing any information that is to the knowledge of the hirer false shall be guilty of an offence under this Act.

(2) Where-

(a) a hirer removes the goods comprised in a hire-purchase agreement from the address specified; or

(b) goods comprised in a hire-purchase agreement are lost or are removed from or are taken out of the hirer's possession, the hirer shall inform the owner in writing or state in the presence of the owner-

38 PART VII GENERAL-38. Fraudulent sale or disposal of goods by hirer.

Every person who, by the disposal or sale of any goods comprised in a hire-purchase agreement, or by the removal of the goods, or by any other means, defrauds or attempts to defraud the owner shall be guilty of an offence under this Act and shall, on conviction, be liable to a fine not exceeding thirty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

[Am. by Act A1384]

39 PART VII GENERAL-39. Certain alterations, etc , of hire-purchase agreements to be of no effect.

Any alteration of, or matter added to, a hire-purchase agreement or any written document that contains the terms and conditions of the agreement after the document was signed, if the alteration is an alteration of any of the matters set out in the written statement or statements required to be served on the hirer pursuant to paragraph 4(1) (a) and (b) before the hire-purchase agreement was entered into, shall have no force or effect unless the hirer or his agent has consented to the alteration or the additional matter by signing or initialling the agreement or the written document in the margin thereof opposite the alteration or additional matter or, the hirer or his agent has consented to the alteration or the additional matter by signing an agreement supplemental to the hire-purchase agreement.

40 PART VII GENERAL-40. Second-hand goods.

Where goods comprised in a hire-purchase agreement are, at the time when the agreement is entered into, second-hand goods then unless-

(a) the goods are described in the agreement as secondhand goods; or

(b) in any proceedings taken by the owner to enforce the agreement, the court is satisfied that-

(i) the hirer was aware at the time when he or his agent signed the agreement that goods comprised or to be comprised therein were second-hand goods; or

(ii) the owner was not aware at the time when the agreement was entered into that the goods comprised therein were secondhand goods,

the liability of the hirer thereunder shall be reduced by the amount included in the agreement for terms charges. The amount may be set off by the hirer against the amount that would otherwise be due or become due to the owner under the agreement and, to the extent t
41 PART VII GENERAL-41. Power of court to extend time.

Any time prescribed by this Act for the service or giving of any notice or other document or for the commencement of proceedings may, on an application made to a court of a Magistrate (either before or after the expiration of that time but after notice to the other party to the hire-purchase agreement), be extended by such court for such further period, and upon such conditions, as the court thinks fit.

42 PART VII GENERAL-42. Power of court to order delivery of goods unlawfully detained.

(1) Upon complaint made to a court of a Magistrate by an owner who is entitled to take possession of any goods comprised in a hirepurchase agreement or by any person acting on behalf of an owner that the hirer or any person in possession of the goods has refused or failed to deliver up possession of the goods on the service of a notice of demand made by the owner or by an agent of the owner authorised in that behalf, the Magistrate may summon the person complained of to appear before the court and if it appears to the court hearing the case that the goods are being detained without just cause, the court may order the goods to be delivered up to the owner at or before a time, and at a place, to be specified in the order.

(2) Any person who neglects or refuses to comply with any order made under this section shall he guilty of an offence under this Act.

43 PART VII GENERAL-43. Service of notices.

Any notice or document required or authorised to be served on or given or sent to an owner or hirer under this Act may be served or given or sent -

(a) by delivering it to him personally; or

(b) [Deleted by Act A813] .

(c) by posting it by registered post addressed to him at his last known place of abode or business.

43A PART VII GENERAL-43A. Substituted service.

(1) Where it appears that it is impracticable for any reason to serve a notice or document required or authorized to be served on or given or sent to an owner or hirer in accordance with section 43, a court of a Magistrate may, on application by an owner or hirer, as the case may be, make an order for substituted service of the notice or document.

(2) An application for an order for substituted service must be made by notice supported by an affidavit stating the facts on which the application is founded.

(3) Substituted service of the notice or document is effected by taking such steps as the court may direct to bring the notice or document to the attention of the person to be served.

44 PART VII GENERAL-44. Proof of service.

The affidavit or oral evidence of an owner or his servant or agent, or a hirer, as to the delivery, posting or service of any notice or document required or authorized to be served, given or sent under this Act is admissible as prima facie proof of the service, giving or sending of the notice or document.

45 PART VII GENERAL-45. Size, type, etc , required in certain documents.

(1) Any prescribed document or part thereof-

(a) not being the signature or initials of any person, that is in handwriting that is not clear and legible;

[(a) Am. by Act A1384]

(b) that is printed in type of a size smaller than the type known as ten-point Times; or

[(b) Am. by Act A1384]

(c) that is not printed in black,

[(c) Ins. by Act A1384]

shall, for the purposes of this Act, be deemed not to be in writing.

(2) In this section "prescribed document" means-

(a) any hire-purchase agreement;

(b) any statement under subsection 4(1);

(c) any copy of an agreement, notice or statement required by section 5 to be served on a hirer;

(d) any statement required by subsection 9(1) to be sent to a
46 PART VII GENERAL-46. Penalty.

(1) Any person who is guilty of an offence under this Act or any regulations made thereunder for which no penalty is expressly provided shall, on conviction, be liable-

(a) if such person is a body corporate, to a fine not exceeding one hundred thousand ringgit, and for a second or subsequent offence, to a fine not exceeding two hundred and fifty thousand ringgit;

(b) if such person is not a body corporate, to a fine not exceeding twenty-five thousand ringgit or to imprisonment for a term not exceeding three years or to both, and for a second or subsequent offence, to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding five years or to both.

(2) Where a person, being a director, manager or an officer concerned in the management of the body corporate or was purporting to act in such capacity, is guilty, by virtue of section 47, of an offence under th
47 PART VII GENERAL-47. Liability of responsible officers of company.

Where any offence under this Act has been committed by any body corporate (whether or not the body corporate has been prosecuted) any person who at the time of the commission of the offence was a director, manager or an officer concerned in the management of the body corporate or was purporting to act in such capacity shall be deemed to be guilty of that offence unless he proves that the offence was committed without his consent or connivance and that he exercised all such diligence to prevent the commission of the offence as he ought to have exercised having regard to the nature of his functions in that capacity and to all the circumstances of the case.

48 PART VII GENERAL-48. Principal criminally liable for acts of servant or agent.

Where the agent or servant of a person commits an offence, or does anything or omits to do anything (which if done or omitted to be done by that person would constitute an offence under this Act) that person shall notwithstanding that he has no knowledge of the offence be deemed guilty of the offence and be liable to punishment for the offence unless he proves that-

(a) the act or omission complained of was not within the ordinary scope of the employment of the agent or servant; or

(b) the act or omission complained of was done or omitted to be done without his consent or connivance and that he exercised all such diligence to prevent the commission as he ought to have exercised having regard to all the circumstances of the case.

49 PART VIII POWERS OF ENFORCEMENT-49. Declaration of office.

Every officer appointed under this Act when acting against any person under this Act shall on demand declare his office and produce to the person against whom he is acting such authority card as the Controller may direct to be carried by such officer.

50 PART VIII POWERS OF ENFORCEMENT-50. Power to enter premises and inspect and seize goods and documents.

(1) Any officer appointed under this Act may, at all reasonable hours, exercise the following powers, that is to say-

(a) if he has reasonable cause to suspect that an offence under this Act has been committed, he may for the purpose of ascertaining whether it has been committed, enter any premises other than premises used only as a dwelling and require any person carrying on a trade or business or employed in connection with a trade or business to supply him any information or to produce any goods, documents or computerized data relating to the trade or business and he may take copies of, or copies of any entry in, any such document or computerized data;

(b) he may seize and detain any goods, document or computerized data which he has reason to believe may be required as evidence in proceedings for an offence under this Act.

[(a) & (b) Am. by Act A1384]

50A PART VIII POWERS OF ENFORCEMENT-50A. Access to computerized data.

(1) An Assistant Controller conducting a search under this Act shall be given access to computerized data whether stored in a computer or otherwise.

(2) For the purpose of this section, "access"-

(a) includes being provided with the necessary password, encryption code, decryption code, software or hardware and any other means required to enable comprehension of such computerized data; and

(b) has the same meaning assigned to it by subsections 2(2) and (5) of the Computer Crimes Act 1997 [Act 563] .

[Ins. by Act A1384]

50B PART VIII POWERS OF ENFORCEMENT-50B. List of things seized.

(1) Where any goods, document or computerized data is seized under this Part, the Assistant Controller shall, as soon as practicable, prepare a list of the things seized and of the places in which they are respectively found and deliver a copy of the list signed by him to the occupier of the premises which has been searched, or to his agent or servant, at the premises.

(2) Where the premises are unoccupied, the Assistant Controller shall whenever possible post a list of the things seized conspicuously on the premises.

[Ins. by Act A1384]

51 PART VIII POWERS OF ENFORCEMENT-51. Obstruction of officers.

(1) Any person who-

(a) wilfully obstructs any officer appointed under this Act acting in pursuance of this Act;

(b) wilfully fails to comply with any requirement properly made to him by such an officer under section 50; or

(c) without reasonable cause fails to give such an officer so acting any other assistance or information which he may reasonably require of him for the purpose of the performance of his functions under this Act,

shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding thirty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

[Am. by Act A1384]

(2) If any person, in giving any such information as is mentioned in the preceding subsection, makes any statement which he knows or has reason to believe to be false, he shall be guilty of an offence and
51A PART VIII POWERS OF ENFORCEMENT-51A. Warrant admissible notwithstanding defects, etc .

A warrant issued under this Act shall be valid and enforceable notwithstanding any defect, mistake or omission therein or in the application for such warrant and any goods or documents seized under such warrant shall be admissible in evidence in any proceedings under this Act.

51B PART VIII POWERS OF ENFORCEMENT-51B. Powers of investigation.

(1) An Assistant Controller shall have the power to investigate the commission of any offence under this Act or any regulations made thereunder.

[(1) Am. by Act A1384]

(2) An Assistant Controller investigating the commission of an offence under this Act or any regulations made thereunder may exercise all or any of the powers in relation to police investigation in seizable cases as provided for under the Criminal Procedure Code [Act 593] .

[(2) Ins. by Act A1384]

51C PART VIII POWERS OF ENFORCEMENT-51C. Power of arrest.

(1) An Assistant Controller may arrest without warrant any person whom he reasonably believes has committed or is attempting to commit an offence under this Act if the person refuses to furnish his name and address or furnishes an address out of Malaysia or there are reasonable grounds for believing that he has furnished a false name or address or that he is likely to abscond.

(2) An Assistant Controller making an arrest under subsection (1) shall without unnecessary delay make over the person so arrested to the nearest police officer or, in the absence of a police officer, take such person to the nearest police station, and thereafter the person shall be dealt with as provided under the law relating to criminal procedure for the time being in force as if he had been arrested by a police officer.

[Ins. by Act A1384]

51D PART VIII POWERS OF ENFORCEMENT-51D. Power to require attendance of person acquainted with case.

(1) An Assistant Controller making an investigation under this Act or any regulations made thereunder may, by order in writing, require the attendance before himself of any person who appears to him to be acquainted with the facts and circumstances of the case, and such person shall attend as so required.

(2) If any person refuses to attend as so required, the Assistant Controller may report such refusal to a Magistrate who shall issue a warrant to secure the attendance of such person as may be required by the order made under subsection (1).

[Ins. by Act A1384]

51E PART VIII POWERS OF ENFORCEMENT-51E. Examination of person acquainted with case.

(1) An Assistant Controller making an investigation under this Act or any regulations made thereunder may examine orally any person supposed to be acquainted with the facts and circumstances of the case and shall reduce into writing any statement made by the person so examined.

(2) The person examined under subsection (1) shall be legally bound to answer all questions relating to such case put to him by the Assistant Controller, but such person may refuse to answer any question the answer to which would have a tendency to expose him to a criminal charge or penalty or forfeiture.

(3) A person making a statement under this section shall be legally bound to state the truth, whether or not such statement is made wholly or partly in answer to questions.

(4) The Assistant Controller examining a person under subsection (1) shall first inform that person of the provisions of subsections (2) and (3).

(5) A statement made by any p
52 PART VIII POWERS OF ENFORCEMENT-52. Supply of information.

(1) The Controller, Deputy Controller and any other officer specially authorised in writing by the Controller in that behalf may in writing require any owner or dealer to supply him any information he may request relating to any hire-purchase agreement or to the goods to which such agreement relates.

(2) Any person who without reasonable excuse fails to supply any information requested under subsection (1) or supplies any information which he knows or has reason to believe to be false commits an offence under this Act.

53 PART VIII POWERS OF ENFORCEMENT-53. Admissibility of statement in evidence.

(1) Except as provided in this section, no statement made by any person to any Assistant Controller in the course of an investigation made under this Act or any regulations made thereunder shall be used in evidence.

(2) When any witness is called for the prosecution or for the defence, other than the accused, the court shall, on the request of the accused or the prosecutor, refer to any statement made by that witness to any Assistant Controller in the course of the investigation under this Act or any regulations made thereunder and may then, if the court thinks fit in the interest of justice, direct the accused to be furnished with a copy of it and the statement may be used to impeach the credit of the witness in the manner provided by the Evidence Act 1950 [Act 56] .

(3) Where the accused had made a statement during the course of an investigation, such statement may be admitted in evidence in support of his defence during the c
54 PART VIII POWERS OF ENFORCEMENT-54. Disclosure of information.

If any person discloses to any other person any information obtained by him in pursuance of this Act he shall be guilty of an offence unless the disclosure was made in or for the purpose of the performance of functions under this Act.

55 PART VIII POWERS OF ENFORCEMENT-55. Prosecution.

No prosecution for any offence under this Act shall be instituted except by or with the written consent of the Public Prosecutor.

[Subs. by Act A1384]

NOTE

(2) The amendment in subsection (1) shall not affect any criminal or civil proceedings pending in any court.

55A PART VIII POWERS OF ENFORCEMENT-55A. Forfeiture of goods, etc , seized.

(1) Any goods, document or computerized data seized in the exercise of any power conferred under this Act shall be liable to forfeiture.

(2) An order for the forfeiture or for the release of any goods, document or computerized data seized in the exercise of any power conferred under this Act shall be made by the court before which the prosecution with regard thereto has been held and an order for the forfeiture of the goods, document or computerized data shall be made if it is proved to the satisfaction of the court that an offence under this Act has been committed and that the goods, document or computerized data were the subject matter of or were used in the commission of the offence, notwithstanding that no person may have been convicted of such offence.

(3) If there be no prosecution with regard to any goods, document or computerized data seized in the exercise of any power conferred under this Act, such goods, document or computeri
55B PART VIII POWERS OF ENFORCEMENT-55B. No costs or damages arising from seizure to be recoverable.

No person shall, in any proceedings before any court in respect of any goods, document or computerized data seized in the exercise or the purported exercise of any power conferred under this Act, be entitled to the costs of such proceedings or to any damages or other relief unless such seizure was made without reasonable cause.

[Ins. by Act A1384]

55C PART VIII POWERS OF ENFORCEMENT-55C. Cost of holding property, etc , seized.

Where any goods, document or computerized data seized in the exercise of any power under this Act is held in the custody of the Government pending the completion of any proceedings in respect of an offence under this Act or any regulations made thereunder, the cost of holding it in custody shall, in the event of any person being found guilty of an offence under this Act or any regulations made thereunder, be a debt due to the Government by such person and shall be recoverable accordingly.

[Ins. by Act A1384]

56 PART VIII POWERS OF ENFORCEMENT-56. Compounding.

(1) The Controller or, in his absence, the Deputy Controller may, with the consent in writing of the Public Prosecutor, compound any offence which is prescribed to be a compoundable offence by making a written offer to the person suspected to have committed the offence to compound the offence upon payment to the Controller or, in his absence the Deputy Controller, of an amount of money not exceeding fifty per centum of the amount of maximum fine for that offence within such time as may be specified in his written offer.

(2) An offer under subsection (1) may be made at any time after the offence has been committed but before any prosecution for it has been instituted, and if the amount specified in the offer is not paid within the time specified in the offer or such extended time as the Controller or, in his absence the Deputy Controller, may grant, prosecution for the offence may be instituted at any time after that against the person to whom t
56A PART VIII POWERS OF ENFORCEMENT-56A. Protection of Controller, Deputy Controllers, Assistant Controllers, etc .

No action or prosecution shall be brought, instituted or maintained in any court against the Controller, Deputy Controllers, Assistant Controllers or any other officer duly appointed by the Minister for or on account of or in respect of any act ordered or done for the purpose of carrying into effect this Act, and no suit or prosecution shall lie in any court against any other person for or on account of or in respect of any act done or purported to have been done by him under the order, direction or instruction of the Controller, Deputy Controllers, Assistant Controllers or any other officer duly appointed by the Minister for any such purpose as aforesaid:

Provided that the act was done in good faith and in a reasonable belief that it was necessary for the purpose intended to be served thereby.

56B PART VIII POWERS OF ENFORCEMENT-56B. Protection of informers.

(1) Except as provided in this section, no witness in any civil or criminal proceedings shall be obliged or permitted to disclose the name or address of any informer or the substance and nature of the information received from him or to state any matter which might lead to his discovery.

(2) If any goods, document or computerized data which is in evidence or liable to inspection in any civil or criminal proceedings contains any entry in which any informer is named or described or which might lead to his discovery, the court shall cause all such entries to be concealed from view or to be obliterated so far as may be necessary to protect the informer from discovery.

(3) If in a trial for any offence under this Act or any regulations made thereunder, the court after full inquiry into the case believes that the informer wilfully made in his complaint a material statement which he knew or believed to be false or did not believe to be true, o
57 PART IX REGULATIONS, ETC-57. Regulations.

(1) The Minister may make regulations for or in respect of every purpose which is deemed by him necessary for carrying out the provisions of this Act and for the prescribing of any matter which is authorized or required under this Act to be so prescribed.

(2) Without prejudice to the foregoing power the Minister may by regulations-

(a) after consultation with the Minister charged with the responsibility for insurance prescribe-

(i) the rates of insurance in respect of any class or classes of goods;

(ii) the different rates for insurance in respect of different classes of goods;

(iii) the rates on a sliding scale; or

(iv) the rates according to or upon any specified principle or criterion;

(b) prescribe all matters relating to the issuance of permits granted under this Act, including the procedure for application, fees, forms, conditions and
57A PART IX REGULATIONS, ETC-57A. Power to amend Schedules.

(1) The Minister may by order published in the Gazette amend the Schedules to this Act.

(2) Hire-purchase agreements entered into prior to any amendment, or variation of, deletion from, or addition to, any Schedule to this Act shall not be affected by such amendment, variation, deletion or addition and the Act shall continue to apply or not to apply, as the case may be, to such hire-purchase agreements.

58 PART IX REGULATIONS, ETC-58. Operation of certain laws.

The Bills of Sale Ordinance 1950 [F.M. No. 30 of 1950] of the States of Malaya, the Bills of Sale Ordinance of Sabah [Cap. 14] and the Bills of Sale Ordinance of Sarawak [Cap. 68] and any subsequent or other legislation for the time being in force in the Federation relating to Bills of Sale shall not apply to any provision in any hire-purchase agreement whereby the rights of the owner thereunder are extended to any replacements or renewals by the hirer of any part or parts of or any accessories added or additions made by the hirer to any goods comprised in any such agreement.