Hire Purchase Act To Be Amended - Ismail Sabri

Repossessor will lose job.

The Ministry of Domestic Trade, Cooperative and Consumerism will soon amend the Hire Purchase Act to protect consumers against action taken against vehicle owners who default monthly installments.

Its minister Datuk Seri Ismail Sabri Yaakob said the Hire Purchase Act need to be amended as the current one gives too much advantage for banks to impose all kinds of charges on consumers when they fail to pay up their installments.

"For example, when a bank repossesses a car from the owner for not paying up installments, the owner will face all sorts of charges when reclaiming the car.

"Among the charges imposed are for towing, outstanding installment amount and payment for storage," he told reporters after meeting 40 representatives from Non-Governmental consumer associations here Wednesday.

The amendments will give the consumers better rights when faced with such situations and prevent the banks from imposing unreasonable charges, he said.

-- BERNAMA