Section 3 — AKTA PERLINDUNGAN PENGGUNA (PINDAAN) 2017

(2)

This Part shall not apply to a credit sale transaction entered into between a purchaser and a co-operative society that is registered under the Co-operative Societies Act 1993

[Act 502] or any sale transaction involving a credit card.

Interpretation for purposes of Part IIIb 24l. For the purpose of this Part—

“credit facility” means a facility provided by a credit facility provider to a purchaser under a credit sale transaction which allows the payment of goods sold to be made in instalments;

“credit facility provider” means any person, including a seller, who provides credit facilities to a purchaser in a credit sale transaction;

“credit sale agreement” means an agreement entered into between a purchaser, who is a consumer, and a credit facility provider for the sale of goods by which—

(a)

a credit facility is provided by the credit facility provider to the purchaser in a credit sale transaction of such goods; and

(b)

the credit payment for the purchased goods is made by the purchaser to the credit sale provider by instalments;

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“credit sale transaction” means a credit transaction between a credit facility provider and a purchaser for the payment of purchased goods by way of instalments;

“dealer” means a person, other than the employee of a credit facility provider, who negotiates on behalf of the credit facility provider for the purposes of making a credit sale agreement;

“goods” means any goods or class of goods prescribed by the Minister under section 24m;

“seller” means any person who sells goods to any purchaser through a credit sale transaction;

“statutory rebate” means—

(a)

a rebate on the outstanding terms charges calculated according to the prescribed formula; or

(b)

a rebate on the amount of premium paid in respect of the insurance of goods, granted upon early settlement of the payment of the total outstanding amount payable under a credit sale agreement;

“terms charges” means an interest calculated at a rate per annum on the initial amount financed by a credit facility provider in a credit sale agreement;

“total outstanding amount payable” means the total amount payable by a purchaser under a credit sale agreement and the amount derived from the terms charges on overdue instalments which has yet to be paid less—

(a)

the total amount of the instalments paid by or on behalf of the purchaser, excluding deposit; and

(b)

statutory rebate, if any.

Power of Minister to prescribe goods 24m. For the purpose of this Part, a credit sale agreement may only be made in respect of any goods or class of goods as prescribed by the Minister.

Preconditions of credit sale agreement 24n. (1) Before any credit sale agreement is entered into in respect of any goods or class of goods, a seller or credit facility provider, or any person acting on behalf of the seller or credit facility provider, or a dealer, who carries out negotiations leading to the making of the credit sale agreement shall serve on the prospective purchaser a prescribed written statement relating to the summary of financial obligation of the prospective purchaser duly completed and signed by the seller, the credit facility provider, the person acting on behalf of the seller or the credit facility provider, or the dealer, as the case may be.

(2)

After the service of the written statement referred to in subsection (1) and upon an application being made—

(a)

by the prospective purchaser to the seller or the person acting on behalf of the seller or the credit sale provider, or the dealer, referred to in subsection (1), the seller, person or dealer shall take such steps to obtain the consent of the credit facility provider to provide the credit facility to the prospective purchaser and the credit facility provider may give its consent; or

(b)

by the prospective purchaser to the credit facility provider referred to in subsection (1), the credit facility provider may give its consent to provide the credit facility to the prospective purchaser.

(3)

A credit facility provider may impose a processing fee which shall not exceed the prescribed fee on the prospective purchaser who makes the application under subsection (2).

(4)

The credit facility provider may impose only one processing fee in respect of one credit sale agreement irrespective of the number of goods purchased under the agreement.

(5)

After the consent of the credit facility provider to provide the credit facility to the prospective purchaser has been given under subsection (2), the seller or the credit facility provider, or the person acting on behalf of the seller or the

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credit facility provider, or the dealer, as the case may be, shall serve on the prospective purchaser a prescribed written statement relating to the consent of the credit facility provider to provide the credit facility to the prospective purchaser duly completed and signed by the credit facility provider.

(6)

The written statements referred to in subsections (1)

and (5) shall be served by delivering the written statements personally to the prospective purchaser or any person acting on his behalf who shall acknowledge receipt of the written statements.

(7)

Any prospective purchaser who has been served with the written statement referred to in subsection (1) or (5)

shall not be under any obligation to enter into any credit sale agreement, and no payment or other consideration shall be required from him in respect of the preparation or service of such written statement.

(8)

No credit sale agreement shall be entered into within the period of ten working days after the service of the written statement under subsection (5).

(9)

Notwithstanding subsection (8), the prospective purchaser may elect to enter into a credit sale agreement after three working days from the date of service of the written statement under subsection (5).

(10)

A credit facility provider shall refund the processing fee imposed under subsection (3) to the prospective purchaser if—

(a)

the consent of the credit facility provider to provide the credit facility is not given under subsection (2);

or

(b)

the prospective purchaser elects not to enter into the credit sale agreement.

(11)

A credit sale agreement entered into in contravention of subsection (1), (5), (6), (7), (8) or (9) shall be void.

(12)

If a dealer or a person acting on behalf of the seller or credit facility provider carries out negotiations leading to the making of a credit sale agreement in contravention of subsection (1) or (5), and thereafter the seller or credit facility provider enters into a credit sale agreement, notwithstanding that the credit sale agreement is void, the dealer or such person commits an offence.

(13)

Any person who—

(a)

imposes an obligation on a prospective purchaser to enter into any credit sale agreement after the written statement referred to in subsection (1) or (5) has been served on the prospective purchaser; or

(b)

requires a prospective purchaser to make any payment or to provide other consideration in respect of the preparation or service of the written statement referred to in subsection (1) or (5), notwithstanding that the credit sale agreement is void, commits an offence.

(14)

A credit facility provider who enters into a credit sale agreement in contravention of subsection (1), (5), (6),

(8)

or (9), notwithstanding that the credit sale agreement is void, commits an offence.

(15)

A credit facility provider who fails to comply with subsection (3), (4) or (10) commits an offence.

Credit sale agreement to be made in writing 24o. (1) A credit sale agreement in respect of any goods or class of goods shall be made in writing and in the national language or the English language.

(2)

A credit sale agreement which contravenes subsection (1)

shall be void.

(3)

A credit facility provider who enters into a credit sale agreement which does not comply with subsection (1), notwithstanding that the credit sale agreement is void, commits an offence.

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Contents of credit sale agreement 24p. (1) Every credit sale agreement—

(a)

shall contain the following information:

(i)

the date on which the credit sale agreement comes into force;

(ii)

the number of monthly instalments to be paid by the purchaser under the credit sale agreement;

(iii)

the amount of each of the instalments, and the person to whom and the place at which the payments of the instalments are to be made;

(iv)

the date for the payment of each of the instalments;

(v)

the description of any part of consideration which is provided or is to be provided otherwise than in cash;

(vi)

the description of the goods which is sufficient to identify them;

(vii)

the address where the goods under the credit sale agreement are kept or used;

(viii)

the terms charges, and ancillary charges including late payment charges, processing fee, storage fee, collection fee or delivery charges, if any; and

(ix)

the rights and obligations of the purchaser and credit facility provider;

(b)

shall contain the following information in a tabular form:

(i)

the cash price, that is the price at which the purchaser might have paid for the goods, if he purchased the goods in cash, at the time of signing of the credit sale agreement;

(ii)

the amount paid or provided by way of deposit, including any booking fee, by the purchaser showing separately the amount paid in cash and the amount provided by any consideration other than cash, if any;

(iii)

the freight charges, that is any amount incurred for the expenses of delivering the goods to the purchaser, and including any amount incurred based on the delivery order of the purchaser, if any;

(iv)

the vehicle registration fee, that is any amount payable for the vehicle registration fee in respect of a motor vehicle, if any;

(v)

any amount payable for insurance in respect of the goods or any of the goods, if any;

(vi)

the total of the amount referred to in subparagraphs (i), (iii), (iv) and (v) less the deposit referred to in subparagraph (ii), if any;

(vii)

the terms charges;

(viii)

the annual percentage rate for terms charges which shall be calculated in accordance with the prescribed formula;

(ix)

the balance originally payable, that is the total of the amount referred to in subparagraphs

(vi)

and (vii); and

(x)

the total amount payable which shall consist of—

(A)

the amount referred to in subparagraphs

(ii)

, (vi) and (vii); or

(B)

the amount referred to in subparagraphs

(i)

, (iii), (iv), (v) and (vii); and

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(c)

shall not contain any information which differs in any material way from the information specified in paragraphs (1)(a) and (b).

(2)

A credit sale agreement which contravenes subsection (1)

shall be void.

(3)

A credit facility provider who enters into a credit sale agreement in contravention of subsection (1), notwithstanding that the credit sale agreement is void, commits an offence.

Ownership in purchased goods under credit sale agreement 24q. Upon the signing of a credit sale agreement, the ownership in the purchased goods shall pass to the purchaser.

Rights and obligations of purchaser 24r. (1) In relation to a credit sale agreement, a purchaser—

(a)

is entitled to choose whether the agreement is to be made in the national language or the English language before the agreement is signed;

(b)

is entitled to an implied guarantee that he shall have and enjoy quiet possession of the goods; and

(c)

is entitled to an implied guarantee that the goods shall be free from any charge or encumbrance.

(2)

In relation to a credit sale agreement, a purchaser shall—

(a)

furnish the monthly amount of instalment payable to the credit facility provider on the agreed date of payment of each instalment;

(b)

cause the purchased goods to be insured in his name during the period of the agreement, where applicable;

and

(c)

upon a request by a credit facility provider under paragraph 24s(1)(a), inform the credit facility provider in writing where the goods are kept or used, or if the goods are not in his possession, to whom he has delivered the goods or the circumstances under which he has lost possession of the goods.

Rights and obligations of credit facility provider 24s. (1) In relation to a credit sale agreement, a credit facility provider is entitled to—

(a)

request, by notice in writing, the purchaser to state in writing where the goods are kept or used, or if the goods are not in the purchaser’s possession, to whom the purchaser has delivered the goods or the circumstances under which the purchaser has lost possession of the goods;

(b)

cause the goods to be insured in the name of the purchaser against any risks that the credit facility provider thinks fit, if any, for the period of the credit sale agreement; and

(c)

collect any booking fee or deposit from the purchaser in respect of any purchased goods, where applicable.

(2)

In relation to a credit sale agreement, a credit facility provider shall—

(a)

serve a copy of the credit sale agreement to the purchaser within twenty-one days after the making of the credit sale agreement;

(b)

give a receipt to the purchaser in respect of each payment of instalment made;

(c)

subject to subsection (3), at any time before the final payment of instalment is made under the credit sale agreement, and within twenty-one days after the

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credit facility provider has received a request in writing from the purchaser, supply to the purchaser a statement signed by the credit facility provider showing—

(i)

the total amount paid to the credit facility provider by or on behalf of the purchaser;

(ii)

the amount which has become due under the agreement but remains unpaid;

(iii)

the amount which is to become payable under the agreement; and

(iv)

the amount derived from the terms charges on overdue instalments;

(d)

issue an authority card to any person acting on behalf of the credit facility provider for the purposes of collecting or receiving the payment of instalments or any outstanding amount under the credit sale agreement, or collecting or receiving goods surrendered by the purchaser under section 24w; and

(e)

where the dealer or person acting on behalf of the credit facility provider for the purposes of collecting or receiving the payment of instalments or any outstanding amount under the credit sale agreement, or collecting or receiving goods surrendered by the purchaser, has ceased to be such dealer or person, inform the purchaser in writing of such cessation and that no payment of instalments or surrender of goods shall be made to such dealer or person.

(3)

The credit facility provider may not comply with the request referred to in paragraph (2)(c) if he has supplied to the purchaser the statement referred to in that paragraph within a period of three months immediately preceding the receipt of the request.

(4)

A credit facility provider who fails to comply with subsection (2) commits an offence.

Limitation on terms charges 24t. (1) The rate of the terms charges in respect of any goods or class of goods under a credit sale agreement as calculated in accordance with the prescribed formula shall not exceed the prescribed rate in respect of the goods or class of goods.

(2)

Where a credit sale agreement is entered into in contravention of subsection (1), the purchaser may, by notice in writing to the credit facility provider, elect—

(a)

to treat the agreement as void; or

(b)

to have the excess amount reduced from the total amount of the terms charges payable by him under the agreement.

(3)

Where the purchaser elects to treat the credit sale agreement as void under paragraph (2)(a)—

(a)

the agreement shall be void;

(b)

the credit facility provider shall refund to the purchaser any amount paid out of the total amount payable or other consideration provided by or on behalf of the purchaser under the agreement; and

(c)

the purchaser shall surrender the purchased goods to the credit facility provider.

(4)

Where the purchaser elects to have the excess amount reduced from the total amount of the terms charges payable by him under paragraph (2)(b), the credit facility provider shall reduce the excess amount from the total amount of the terms charges payable under the credit sale agreement.

(5)

If after the reduction made under subsection (4), it is found that the total amount of the terms charges payable has been overpaid by the purchaser under the credit sale agreement, the purchaser may set off the amount of the overpayment against the total amount payable under the agreement.

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(6)

A credit facility provider who fails to comply with subsection (1), paragraph (3)(b) or subsection (4) commits an offence.

(7)

A purchaser who fails to comply with paragraph (3)(c)

commits an offence.

(8)

In this section, “excess amount” means the difference between the amount of the terms charges in respect of any goods or class of goods under a credit sale agreement and the amount of the terms charges as calculated according to the prescribed rate.

Limitation on period of payment of instalments and charges 24u. (1) The period of payment of instalments under a credit sale agreement shall not exceed the prescribed period.

(2)

The rate of late payment charges on overdue instalments imposed under a credit sale agreement shall not exceed the prescribed rate.

(3)

A credit facility provider who fails to comply with subsection (1) or (2) commits an offence.

Default in payment of instalments by purchaser 24v. (1) In the event of default in payment of two consecutive instalments by a purchaser under a credit sale agreement, the credit facility provider shall issue a notice to the purchaser on the settlement of the overdue instalments under the agreement.

(2)

Upon receipt of the notice under subsection (1), the purchaser may within twenty-one days elect to—

(a)

pay the overdue instalments and the late payment charges to the credit facility provider;

(b)

make an early settlement of the credit sale agreement by paying the total amount payable under the agreement to the credit facility provider; or

(c)

terminate the credit sale agreement and surrender the purchased goods to the credit facility provider in accordance with section 24w.

(3)

If the purchaser elects to make an early settlement under paragraph (2)(b), the credit facility provider shall grant the statutory rebate to the purchaser.

(4)

If the purchaser fails to make the election under subsection (2), the credit facility provider may recover, through legal proceedings, the total outstanding amount payable by the purchaser under the credit sale agreement as a debt due to the credit facility provider.

(5)

A credit facility provider who fails to comply with subsection (1) or (3) commits an offence.

Surrender of goods 24w. (1) A purchaser may, at any time or upon making the election under paragraph 24v(2)(c), surrender the purchased goods to the credit facility provider.

(2)

The purchaser shall surrender the purchased goods on a date as agreed by the credit facility provider and the purchaser, and at the place of business of the credit facility provider nearest to the place where the purchased goods are kept or used or at another place as agreed by the credit facility provider and the purchaser.

(3)

Where the purchased goods are surrendered under subsection (1), the credit facility provider shall not impose any cost incurred by the credit facility provider in storing the purchased goods or any other incidental cost.

(4)

Upon receipt of the purchased goods surrendered by the purchaser under subsection (1), the credit facility provider shall sell or otherwise dispose of the purchased goods.

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(5)

If the purchased goods surrendered by the purchaser under subsection (1) are sold or disposed of, the purchaser is entitled to the best price that could reasonably be obtained by the credit facility provider upon the sale or disposal of the purchased goods.

(6)

If there is any surplus between the proceeds of sale or disposal of the purchased goods surrendered and the total outstanding amount payable under the credit sale agreement, the credit facility provider shall pay the amount of the surplus to the purchaser.

(7)

If there is any deficiency between the proceeds of sale or disposal of the purchased goods surrendered and the total outstanding amount payable under the credit sale agreement, the purchaser shall pay the amount of the deficiency to the credit facility provider.

(8)

If the purchaser fails to pay the amount of the deficiency to the credit facility provider under subsection (7), the credit facility provider may recover, through legal proceedings, the amount of the deficiency as a debt due to the credit facility provider.

(9)

A credit facility provider who fails to comply with subsection (3), (4) or (6) commits an offence.

Restriction on disclosure or circulation of personal data 24x. A credit facility provider shall not disclose or circulate the personal data of a purchaser obtained under a credit sale transaction to a third party unless the purchaser has been informed of the purpose of such disclosure or circulation and a written consent of the purchaser has been obtained.

Prohibition on repossession of goods 24y. A credit facility provider shall not at any time, whether upon default of payment of instalments or otherwise, repossess the purchased goods from the purchaser.

Contravention of section 24x or 24y to be an offence 24z. (1) A credit facility provider who contravenes section 24x or 24y commits an offence and shall, on conviction, be liable—

(a)

if such person is a body corporate, to a fine not exceeding two hundred and fifty thousand ringgit, and for a second or subsequent offence, to a fine not exceeding five hundred thousand ringgit; or

(b)

if such person is not a body corporate, to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding three years, or to both, and for a second or subsequent offence, to a fine not exceeding two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding six years, or to both.

(2)

In the case of a continuing offence, the offender shall, in addition to the penalties under subsection (1), be liable to a fine not exceeding two thousand ringgit for each day or part of a day during which the offence continues after conviction.

Regulations relating to credit sale transactions 24aa. (1) The Minister may make such regulations as may be necessary or expedient in respect of credit sale transactions and credit sale agreements.

(2)

Without prejudice to the generality of subsection (1), such regulations may prescribe—

(a)

the procedure relating to the making and execution of credit sale agreements including the conduct of the parties prior to and after the making of the agreement; and

(b)

the formula and the rate for terms charges, period of instalments, statutory rebates, late payment charges, booking fees and ancillary charges.”.

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Amendment of section 123