Who Implement Early settlement Fee??

[MIGHTY MAX]

Can i know who started the early settlment fee?

Issit the finance company that the all the bikeshop been telling us?

 

What i know that, some shops they stated & informed the buyer but some dont..

 

I just made a full settlement of my 1000cc Sportbike that is 9yrs that i bought at Ubi Industries..Early Settlement Fee$300(they informed me when i sign the aggreement)

 

Then when i wanted to make my full settlement for my 7yrs old 200cc Honda Phantom that i bought in Lavender (but this bikeshops have few branches that is located in Changi,Ubi & Bukit Merah which different name)..

 

They told me that i have to pay $800 for a full settlement fee:sian:

 

In mind my mind(WTF)..I can remember that when i bought the bike..the salesman did not informed me about the early settlement fee..

 

 

Until now im wondering, issit everyshop have their own $$price for early settlement fee..

[mepkoh]

see hire purchase laws..http://app.mti.gov.sg/default.asp?id=566

 

3. What is the change with respect to the use of the "Rule of 78" formula to calculate the statutory rebate for hirers when they opt for early settlement?

 

The use of the "Rule of 78" formula is now no longer mandatory with the passing of the Hire-Purchase (Amendment) Act.

 

Given that the market is competitive and there are other financing alternatives, there should be no need to specify any particular approach to calculate the loan balance payable by hirers upon early settlement of their loan. Consumer interest is better safeguarded through enhancing disclosure and transparency requirements so that hirers know and understand upfront (i.e. at the time of entering into the hire-purchase agreements) the method for calculating the loan balance upon early settlement.

 

As part of the disclosure requirements introduced by the Hire-Purchase (Amendment) Act, the owner will be required to provide the method of calculating the loan balance upon early settlement to prospective hirers in the written statement of financial obligations as provided under the new Second Schedule (inserted by the Hire-Purchase (Amendment) Act). Prospective hirers will then be able to compare across financing packages and make an informed choice.

 

 

so the motor shop are flouting the law..

[mepkoh]

note date of ammendment to the law..nov 2004..

further to the above..

 

4. What information should owners now provide upfront to prospective hirers?

 

The new Second Schedule (inserted by the Hire-Purchase (Amendment) Act) lists the minimum information that owners should provide to prospective hirers, in a written form, so that prospective hirers can be clear of the financial obligations arising, in particular:

 

 

the method of calculating the loan balance upon early settlement;

 

effective interest rate charged by owners;

 

interest rate for overdue installments; and

 

administrative charges, if any.

 

Further, to enable the hirer to know upfront whether the hire-purchase agreement falls under the ambit of the Hire-Purchase Act, the price of the motor vehicle (excluding the Certificate of Entitlement) should also be clearly indicated.