PETALING JAYA: The Hire Purchase (Amendment) Act 2026 could have been helpful if it applies to existing borrowers, especially with the rising cost of living. The Act, which was gazetted on Jan 30 and will come into force on June 1, is aimed at strengthening consumer credit fairness and modernising hire purchase agreements. “If you decide to settle early, you don’t save as much but new borrowers will get a fairer deal. Otherwise, you can just continue paying as usual since your monthly instalment doesn’t change.”Gunaseelan said borrowers can consider early settlement with discounts offered by the bank. “This not only reduces the overall financial burden on borrowers but also encourages better financial discipline, allowing consumers to manage their debts more responsibly.

Source: The Star March 28, 2026 01:01 UTC