The hirer should have a right to, at any time during the course of the hire-purchase, purchase the goods without having to wait for the expiration of the hire-purchase agreement. Repossession Overview of restrictions on repossession. This can happen once your creditor secures legal action against you. If your HP deal in default, your creditor can recover the debt by repossessing the goods. Repossession of goods the subject-matter of hire-purchase agreement is an important remedy available to the owner in hire-purchase transactions under the Hire-Purchase Act, Cap. Selling hire purchase goods. Repossession of Hire Purchase Goods. There are two possibilities in repossession of goods. 17B. ## Only those appointed by the Government via the Controller, are allowed to repossessed the car. ... or if the goods are kept on your premises and you do not consent to their repossession, the creditor will ask the court to send you a claim form asking for the goods to be returned. Hire purchase also mentions conditions and warranties, merchantability and fitness articles for the hire purchase agreement. When the vendor […] If you cannot afford to proceed with the installment payment, you may terminate the hire purchase agreement by returning the goods to the owner. Default and Repossession in Hire Purchase: Where the buyer makes default in the payment of any installment the vendor has a right to repossess the goods sold on hire purchase and forfeit whatever amount he has already received considering it as a hire charge. Right on repossession by owner. This is called an application for a ‘return order’. When this occurs, he should get some rebate because the interest element of the hire-purchase price would have been reduced. Notices must be given to the hirer when goods are to be repossessed in Section 16. This was seen in Kesang Leasing Sdn Bhd v Mohd Yusof Bin Ismail , where the hire purchase of goods which does not fall under the list can sill be governed under the act. REPOSSESSION BY OWNERS The Hire-Purchase Act lays down various restrictions on the power of the owner when recovering possession: 1. 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.-S.26(2) The list of goods includes all consumer goods and motor vehicles. (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). There are a number of significant restrictions on lenders taking possession (called “repossession”) of hire-purchase goods or goods listed as security under a loan contract: Goods can only be repossessed if the contract explicitly allows this (see below, “When lenders can repossess”). This will depends on how much you’ve paid for the HP goods and where it’s being kept. Notice of a hearing date with a District Judge is included. However, if the goods hired does not falls under the list, paries can sill choose to be bound by the Act. It also lists the statutory rights of tenants, secured rights and procedures for repossession of goods under a hire purchase agreement. A hire purchase arrangement is beneficial because it reduces the risk of the provider for the consumer goods involved. Because the ownership of the item does not officially transfer until all payments are made, this plan offers protection to the vendor for an unsecured item because it can be repossessed.