Hire Purchase Rescheduling:Does it Really Benefit the Consumer?

• Main Authors: Hussain, Abdul Razak, Ahmad Zaluki, Nurwati Ashikkin
• Format: Article
• Language: English
• Published: The Journal of the Institute of Bankers Malaysia 2010
• Subjects: HC Economic History and Conditions
• Online Access: https://repo.uum.edu.my/id/eprint/31068/1/BJM%20135%202010%2003-05.pdf; https://repo.uum.edu.my/id/eprint/31068/
• Institution: Universiti Utara Malaysia

After 54 years of independence, the Malaysian banking industry has developed quickly not only in marketing concepts, book-keeping, technology, new product development and innovation, but also in the approach to risk and assets quality management. These developments have not only benefited consumers as a whole, but also brought up new issues to be addressed and resolved. One of the main focuses in consumer credit is in hire purchase financing. On average, hire purchase receivables have contributed more than 15% towards the overall total consumer banking loans in Malaysia. Despite being highly regulated and closely monitored by Bank Negara Malaysia, there are still issues, such as signing blank agreements, forced repossession, unauthorized refinancing and rescheduling of hire purchase accounts, to be addressed. In this article, the writers discuss the issue of rescheduling hire purchase accounts in protecting consumer needs