Moratorium: Hire Purchase Customers Have Repayment Options

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Hire purchase customers who choose to take up the six-month moratorium from April 1 to Sept 30, 2020 will have an option in terms of repayment, says the Association of Banks in Malaysia (ABM).

In a statement today, ABM said relevant customers could choose to pay the accumulated six months’ deferred instalments together with their October 2020 instalment without being charged any additional interest.

“Or they can continue the repayment of these instalments post-October 2020 through an extension of six months in repayment period after the original maturity date.

“In this case, interest based on the contractual rate will be charged on the amount of the deferred instalments that remains outstanding until these instalments are fully repaid, which should be by the end of the extended six-month tenure,” it said.

ABM said banks will also communicate the relevant deadlines, as well as the method they will adopt to ensure minimal inconvenience to customers on the acceptance process.

As for hire purchase customers who do not formally confirm their acceptance of the moratorium upon receipt of notification from their banks, they will be considered as not taking up the moratorium, it said.

“Therefore, these hire purchase customers must continue to pay their monthly instalments as usual according to their original schedule,” it added.

Reuters

However, ABM said its member banks will not impose any additional interest charges nor late payment fees for instalments that remain outstanding for April and May 2020 by hire purchase customers who had deferred their monthly instalment payment, provided that payments for April, May and June 2020 are made no later than June 30, 2020.

“If the said payments are not made by June 30, 2020, the accounts will go in arrears and late payment charges will start accruing from July 2020 onwards,” it said.

ABM reminded all hire purchase customers who wish to take up the moratorium to confirm the same with their respective banks upon receipt of communication from their banks.

It said its member banks will communicate with their impacted customers on the exact procedures they will need to follow to take up the moratorium, as well as the instalment payment options available to them once the six-month moratorium is over.

“This communication will be done via electronic mails (e-mails), letters, information posted on the banks’ official websites/social media platforms, and/or via SMS/push notifications,” it said.

On March 25, 2020, Bank Negara Malaysia (BNM) announced measures in support of efforts by banking institutions to assist individuals, small and medium enterprises and corporations to manage the impact of the Covid-19 outbreak.

The measures include a deferment of all loan/financing repayments for a period of six months, with effect from April 1, 2020.