Press Releases

The Association of Banks In Malaysia

Financing Moratorium Changes for Hire Purchase

Kuala Lumpur, Thursday, 30 April 2020 – The Association of Banks in Malaysia (ABM) would like to inform that its member banks will be reaching out to their respective Hire Purchase customers to notify them of the procedures to complete their processing for the moratorium in line with the announcement by Bank Negara Malaysia on 30 April 2020 for Hire Purchase customers to officially confirm that they wish to take up the 6-month moratorium from 1 April – 30 September 2020.

Hire Purchase customers who have since 25 March 2020 already notified their banks on their choice to continue paying their existing monthly instalments, i.e. NOT to take up the 6-month moratorium from 1 April - 30 September 2020, do not have to take any further action to restate their decision. This announcement is not applicable to you.

On the other hand, all Hire Purchase customers who wish to take up the moratorium are now required to formally confirm the same with their respective banks upon receipt of communication from their banks.

ABM 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 6-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.

Hire Purchase customers who choose to take up the moratorium will have an option in terms of their repayment. They can either choose to:-

(i) pay the accumulated 6 months’ deferred instalments together with their October 2020 instalment without being charged any additional interest; or

(ii) continue the repayment of these instalments post October 2020 through an extension of 6 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 6-month tenure.

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.

In view of the current Movement Control Order and in the interest of the health and wellbeing of all parties, member banks would like to encourage customers to use their respective banks’ online banking platforms to digitally indicate their acceptance to the moratorium and agreement to its terms, where possible.

Hire Purchase customers who do not formally confirm their acceptance of the moratorium upon receipt of notification from their banks will be considered as not taking up the moratorium. Therefore, these hire purchase customers must continue to pay their monthly instalments as usual according to their original schedule. However, our 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 payment for April, May and June 2020 are made no later than 30 June 2020. If the said payments are not made by 30 June 2020, the accounts will go in arrears and late payment charges will start accruing from July 2020 onwards.

ABM wishes to assure all customers that the above process is to ensure that the rights of all parties continue to be preserved and protected as required under the provisions of the Hire Purchase Act 1967 which governs the financing granted. ABM is fully supportive of the aim of the moratorium which is to provide immediate cash flow relief for individuals and businesses affected by the COVID-19 outbreak for a period of 6 months from April 2020 to September 2020, through the deferment of repayment of monthly instalment and applicable interest.

ABM and its members regret any inconvenience caused as a result of this procedure and assure customers that banks will ensure minimal inconvenience in this matter. Customers are also assured that our member banks will be glad to provide further clarification or advice on their financing facilities, if required, once the notifications have been sent.

ABM would also like to alert the public to continue to be vigilant against the many attempts by fraudsters to deceive them, especially during these challenging times. Hence, the Association would like to remind all customers to only deal directly with their banks - either through their respective internet banking platforms, visiting the branches, calling the official telephone numbers or emailing the official email address - on all matters relating to the moratorium as well as for any applications for financing under the stimulus package or Special Relief Facility that have been announced by Bank Negara Malaysia.




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The Association of Banks in Malaysia (ABM) was formed in November 1973. Our membership is currently made up of the 27 commercial banks operating in Malaysia.

Since its inception, ABM has been actively involved in various initiatives to promote and strengthen the commercial banking industry to become more resilient, effective and efficient.

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