Singapore legislation
Clause 29
Clause 29
Limitation on terms charges
(1)
The terms charges in relation to a hire-purchase agreement shall not, when calculated as a rate per centum per annum in accordance with the formula set out in the Sixth Schedule to this Act, exceed a rate per annum as may be prescribed by any regulations made under this Act in respect of any goods or class of goods.
(2)
Where a hire-purchase agreement is entered into in contravention of this section, the hirer may, by notice in writing to the owner signed by the hirer or the hirer’s agent, elect either to treat the agreement as void or to have his liability reduced by the amount included in the agreement for terms charges; and —
where the hirer elects to treat the hire-purchase agreement as void, the agreement shall be void, and the amount paid or provided, whether by cash or other consideration, by or on behalf of the hirer under the agreement shall be recoverable by action as a debt due to him by the owner; or
where the hirer elects to have his liability reduced by the amount included in the agreement for terms charges, his liability shall be reduced by that amount and that amount may be set off by the hirer against the amount that would otherwise be due under the agreement and, to the extent to which it is not so set off, may be recovered by action by the hirer as a debt due to him by the owner.