New consumer protection regulations for the hire purchase of cars and motorcycles to replace the previous regulations issued in 2018 have been issued. The new regulations will take effect on 10 January 2023 and will apply to contracts made from 10 January 2023 onwards. The new regulations apply to the hire purchase of a car or motorcycle for an individual and for personal use only, and not for transportation for commercial or business purposes.
Our newsletter summarises the notable amendments, such as the interest rate and fines for default. In particular, the interest rate has been changed from a flat rate to an effective rate, depending on the type of vehicle (in case of new car: up to 10% p.a; used car: up to 15% p.a.; motorcycle: up to 23% p.a.) Business operators should take note of the new regulations to prepare themselves for the amendments.