KUALA LUMPUR, May 1 – Any additional interest that some banks may charge on the deferred payment cannot be higher than the original hire-purchase contract signed, Bank Negara Malaysia (BNM) said.<\/p>\n
BNM reiterated\u00a0that, as a regulator, it has from the very beginning indicated that there will be accrued interest or profit with regard to the six-month\u00a0moratorium.<\/p>\n
“Most important is the additional interest that some banks may charge, we have clearly stated that it cannot be higher than the original hire-purchase contract (signed with the borrower),” BNM\u00a0Prudential Financial Policy director\u00a0Cindy Siah Hooi Hoon said today.<\/p>\n
So, they cannot go beyond that, she said, adding that BNM has already informed the banking institutions about\u00a0it.<\/p>\n<\/div>\n
LINK and Regional Offices director\u00a0Datin Arlina Ariff\u00a0said the announcement yesterday was to streamline the process and ensure everyone is getting a clear picture of the deferment according to the Hire-Purchase Act 1967 (HP Act) and Syariah.<\/p>\n
“As a regulator, BNM must make the announcement first followed by banks that would then ensure the procedures, and follow the requirements outlined in the HP Act, as well as the Syariah requirement,” she said.<\/p>\n<\/div>\n
Asked whether those who\u00a0have skipped their April and May payments need to pay, Arlina said: \u201cIt depends on what the borrowers want\u00a0to do. If they want to continue with the deferment they can continue to do (so).<\/p>\n<\/div>\n
“There shouldn’t be any penalty,” she asserted.<\/p>\n
Meanwhile, Deputy Governor\u00a0Jessica Chew said BNM’s objective was to ensure that people are\u00a0well informed of\u00a0the moratorium and the changes that come\u00a0with the deferment.<\/p>\n<\/div>\n
“It was an effort to ensure that banks are more systematic about the process,” she said.<\/p>\n
Acknowledging the communication could have been made much clearer, she said\u00a0under the HP Act, any deferment would require all the steps that were\u00a0being spelled out now.<\/p>\n
“Ultimately, when you add all the interest in, (it) comes to the same thing. It is more punitive if you pay early under the HP Act. So, that is the only difference.<\/p>\n
“Under the HP Act, just the act of differing the repayment schedule even in a scenario when nothing changes\u00a0would require all the additional steps that we are talking about now,” she said.<\/p>\n
– BERNAMA<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"
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