This answer is written by AI. The information provided in this response is intended for general informational purposes only and should not be considered as legal advice. Do not rely solely on the information provided in this response for any legal decisions. Consult with a qualified legal professional before making any decisions.

What Is the Repossession Process Under the Hire Purchase Act in Malaysia?

Question from beyla, What Is the Repossession Process Under the Hire Purchase Act in Malaysia?

Answer from AI:

When dealing with a hire purchase agreement, it’s important to understand the rights and obligations of both the buyer and the seller. In Malaysia, the Hire Purchase Act 1967 governs the hire purchase agreements and outlines the process for repossession of goods.

Understanding Hire Purchase Agreements

A hire purchase agreement is a contract where the buyer agrees to pay for goods in parts or a percentage at a time. Until the final payment is made, the ownership of the goods remains with the seller. If the buyer defaults on payments, the seller may have the right to repossess the goods.

Repossession Under the Hire Purchase Act 1967

Before Repossession:

  • The seller must serve a notice in writing to the buyer after the buyer has defaulted on the payment. This is known as the Fourth Schedule notice.
  • The notice must give the buyer 21 days to pay the overdue instalment.
  • If the buyer fails to pay within the 21 days, the seller may proceed with repossession.

During Repossession:

  • The seller must adhere to the legal process of repossession as outlined in the Act.
  • Repossession should be done in a peaceful manner and without breaching the peace.
  • If the seller cannot repossess the goods peacefully, they may need to apply for a court order.

After Repossession:

  • The seller must send a notice to the buyer within 21 days of repossession, informing them of the repossession and the amount due.
  • The buyer has the right to reinstate the hire purchase agreement within 21 days of the notice of repossession by paying the overdue instalment and any repossession costs.
  • If the buyer does not reinstate the agreement, the seller may proceed to sell the goods.
  • The seller must notify the buyer of the intention to sell, and the buyer has the right to purchase the goods at any time before the sale.

Legal Advice and Assistance

It is crucial for Wah Siah Electronics to follow the proper legal procedures for repossession to avoid any potential legal issues. Non-compliance with the Hire Purchase Act can result in penalties and may invalidate the repossession process.

For personalized advice and to ensure that all legal steps are correctly followed, Wah Siah Electronics should consult with a legal professional who is experienced in Malaysian hire purchase law. A lawyer can provide guidance on the repossession process and represent the company in court if necessary.

Additional Resources

For more information on the Hire Purchase Act 1967, Wah Siah Electronics can refer to the official legislation or visit the Malaysian government’s legal portals for self-help resources.

Remember, this information is a general guideline, and legal situations can vary greatly. It is always best to seek legal advice for specific cases.


In summary, Wah Siah Electronics must follow the steps outlined in the Hire Purchase Act 1967 for the repossession of the television set from Amin. This includes serving the proper notices and respecting the buyer’s rights throughout the process. Legal consultation is recommended to navigate the complexities of the law and to ensure that the company’s actions are legally sound.

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