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Showing posts with label HP ACT 1967. Show all posts
Showing posts with label HP ACT 1967. Show all posts


The Hire Purchase Act amendments third bill was tabled, approved and gazetted in Parliament on 23 June 2010 click HERE and search for parliament bill no D.R. 18/2010.

Almost all stakeholders share a common view that there are anomalies in the car buying process which resulted from lack of communication between those from the industry and policy makers.
However, there are even confusions among the stakeholders in the automotive industry.  Whilst PROTON EDAR Dealers Association Malaysia (PEDA) and most of other stake holders such as Perodua Dealers Association (PDA) which together (with PEDA) has more than 60% market share (in  passenger car sales Total Industry Volume), share a common view that the stakeholders were not consulted and discussed prior to the new law being gazetted (note the 'before the law being gazetted' and not implemented).

Dato Aishah Ahmad, President Malaysian Automotive Association (MAA) refuted a WRONG CLAIM in the Star newspaper on 23 June 2011.  PEDA and stakeholders did not refute that there existed consultations between Ministry and other stakeholders before the implementation. For the past 6 months, we have been in and out of various meetings after meetings to interpret what the new law says and in the preparation of a new Standard Operating Procedures (SOP) for our members.

What we are adamant is the consultation BEFORE the law was tabled, passed and gazetted in parliament. Policy Maker should consult, discuss and gather feedback from the industry PRIOR to the bill being tabled and approved. Once the law has been approved & gazetted, it became the law awaiting the relevant Ministry to implement and enforce. Talking at this stage will not change any part of the approved & gazetted law.


The past few months, PROTON EDAR DEALERS ASSOCIATION MALAYSIA (PEDA) which I am the President had been occupied attending meetings and dialogues with the Ministry of Domestic Trade, Co-operatives and Consumerism, attended various forums with lawyers that represented banks, discussed with various stake holders and have been in and out of various bank's head office for discussion in constructing a work flow process for all dealers nationwide to comply. PEDA too had the pleasure of meeting with the Association of Islamic Banking Institutions Malaysia (AIBIM) and bounced various ideas to be prepared for the first day of implementation.

I first blog on the Hire Purchase Act (1967) ("HP Act") amendments on 6 July 2010 at HERE when the bill was passed by parliament. HP Act is under the purview of the Ministry of Domestic Trade, Co-operative and Consumerism.

1.  The first action taken by PROTON EDAR dealers nationwide was to burn and throw all blank hire-purchase documents/agreements from any banks. When the new law take effect on 15 June 2011 onward, it will be an offense for any party to be in possession of a blank & incomplete hire-purchase agreement. [Paragraph 4B (2A)].

It is now an offense under the new HP Act to ask Car Buyer to sign a blank or incomplete Hire-Purchase agreement or any form(s) or document(s) related to the Hire Purchase agreement.


Friday October 22, 2010

Peda: Car repossession up due to changes in Act


But the rate will be slower once amendments gazetted

PETALING JAYA: The move to approve the amendments to the Hire Purchase Act may have contributed to the recent surge in repossession of cars, according to Proton Edar Dealers Association Malaysia (Peda) President Armin Baniaz Pahamin.

He said although Peda was not privy to the statistics of repossessed vehicles, it believed the rate of car repossession had increased after the amendments to the Act was passed in the second quarter of this year.

“Once the amendments have been gazetted, the percentage of repossessed vehicles should deteriorate again as it will be more tedious for banks to repossess the affected cars. Our concern is in the bank’s approval rate. “Conventionally, the approval for new car loan will also become more difficult when the banks’ exposure and risk is higher. When a bank cannot secure their asset via repossession, they too will revised their credit risk scoring,” he told StarBiz.


Most Recent write up:
(A) 1st day of Implementation Hire Purchase Act 1967 (amendments 2010)

(B) Implementation of HP Act amendments

There are 26 amendments to the 43 years old Hire Purchase Act 1967 tabled in Parliament for second and third reading but the biggest concern to both the public as well as car dealers are clause 7,8,9 and 10 of the bill tabled.

Let us first see and understand those amendments. The followings are excerpts and extractions from the bill tabled in Parliament.

Clause 7 of the Bill seeks to amend Section 16 of the Hire-Purchase Act 1967 to impose new conditions on the owner in relation to repossession under this Act. Section 16 of the principal Act is amended by: 

(a) by substituting for subsection (1) the following subsection:

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