Interest Rebate

[SpdDeViL]

Hi,

 

Just decided to post a thread to warn all hirers and future hirers of bikes.

 

What do i mean by hirers? People who purchase motorcycles under a Hire Purchase Agreement.

 

Please note that you are covered under the HP Act Chapter 125 Section 13.

 

You are entitled to claim the interest rebate as shown in the calculation below.

 

(A x (A+1)) x Total Interest Debited Upfront / (B x (B+1)).

 

A: Tenure/No of installments remaining

B: Original Tenure/No of installments.

 

e.g. I took a loan for 20k over 4 years. Interest 5%.

 

Interest Debited Upfront = 20000 x 4 x 5/100 = 4000.

 

If i decided to exercise my right to do a early settlement say 20 months down the road,

 

(28 x (28+1) x 4000 / (48 x (48+1)) = 28 x 29 x 4000 / (48 x 49) = 1380.95

 

This calculation is based on the HP Rule 78 as at Nov 16, 2006.

 

NOTE THAT MOTORCYCLE SHOPS HAVE BEEN TRYING TO GET BUYERS TO SIGN A SEPARATE ADDENDUM TO INDICATE A PENALTY ON EARLY SETTLEMENT OR EVEN TO INDICATE NO INTEREST REFUND UPON EARLY SETTLEMENT.

 

Please watch carefully before you sign the documents. Ask questions if needed.

 

Why did i post this thread, some may ask. My friend came to me for assistance when a shop rejected his claim for interest rebate. I went down personally to talk to the boss nicely. Despite producing the facts and calculations, the boss insisted on not paying and asked me to go ahead and complain to CASE.

 

As you can guess, his attitude was not very nice. So in the end, me and my friend left. Guess what? He called my friend later and offered to pay him a substantial amount. My friend accepted the offer reluctantly. Case closed.

 

However, if it was me, i would never have compromised. Know your rights. Good Day.