Hire Purchase and Credit Sale Act

Hire Purchase and Credit Sale (Charges) Regulations 2000

[GN 112 of 2000 – 21 August 2000] [Sections 3 and 23]

1. These regulations may be cited as the Hire Purchase and Credit Sale (Charges) Regulations 2000.

2. In these regulations –

"Act" means the Hire Purchase and Credit Sale Act;

"late payment'' means payment of an installent or part thereof after the due date;

"monthly charges'' means the charges payable for any given month within a repayment period;

"total charges'' means the total charges payable over the whole of a repayment period.

3. In every credit sale or hire purchase agreement, the payment of the chargeable price together with the total charges shall be made by monthly equal instalments.

4. (1) For the purpose of section 3 of the Act, the annual percentage rate shall be not more than 19 per cent of the chargeable price.

(2) No dealer shall claim charges at a rate which exceeds the annual percentage rate specified in paragraph (1).

[Reg. 4 amended by reg. 3 of GN 187 of 2012 w.e.f. 1 November 2012.]

5. (1) Subject to paragraphs (2) and (3), for the purpose of determining the monthly charges or total charges for a repayment period, a dealer shall apply the annual percentage rate on the chargeable price on a diminishing balance method.

(2) The total charges shall be computed in accordance with the formula set out in Part I of the First Schedule.

(3) The monthly charges shall be computed in accordance with the formula set out in Part II of the First Schedule.

(4) No dealer shall claim total charges or monthly charges, as the case may be, which

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