Hire-Purchase (Amendment) Act 2026: Compliance, Implications and Operational Readiness

By the end of the program, participants will be able to:

• Explain the purpose, scope and timeline of the HPAA 2026 and how it differs from the Hire Purchase Act 1967.
• Describe the key amendments, including the changes to interest calculation, early settlement and disclosure.
• Distinguish between agreements under the amended Act and existing agreements, and apply the transitional arrangements.
• Assess the impact of the amendments on pricing, product structure, loan processing, systems and reporting.
• Review and update hire purchase agreements, schedules and customer documents, including digital execution.
• Identify the compliance obligations of each function (credit, legal, compliance, operations and collections).
• Carry out a gap analysis of current policies and SOPs and prepare a practical compliance action plan.

This program is designed for banking and financial services professionals involved in hire purchase financing, credit risk, and recovery functions, including:

• Credit and loan officers
• Hire purchase and consumer financing officers
• Collections, recovery and remedial management teams
• Legal and litigation officers
• Compliance and risk management personnel
• Operations, documentation and product teams
• Branch managers, relationship managers and supervisors
• Internal audit and governance teams

Suitable for:
Banks, Islamic banks, development financial institutions, leasing companies, and non-bank financial institutions involved in hire purchase financing.

Day 1: Understanding the Amendments and Their Implications

9.00am to 10.30am: Module 1, Overview of the HPAA 2026

• Background and reasons for the reform of hire purchase law
• Timeline: when the Act was passed, gazetted and came into force
• The Hire Purchase Act 1967 and the HPAA 2026: what has changed and what has not
• Related laws and regulatory expectations: Hire Purchase (Term Charges) Regulations 2026, Consumer Credit Act 2025, Contracts Act 1950, Consumer Protection Act 1999 and Bank Negara Malaysia requirements
• Scope of application: transactions and goods covered, and exclusions
• Transitional arrangements: new agreements versus existing agreements
• Overview of the compliance implications for banks and financial institutions

10.30am to 10.45am: Tea Break

10.45am to 1.00pm: Module 2, Key Amendments and Regulatory Requirements

• Abolition of the flat interest rate structure
• Abolition of the Rule of 78 method for early settlement
• Reducing balance method: how interest is calculated on the outstanding balance
• Effective interest rate: meaning, disclosure and comparison with the previous approach
• Fixed-rate and variable-rate financing under the amended Act
• Early settlement, rebates and charges under the amended provisions
• Disclosure and transparency requirements to the hirer
• Other key amendments and statutory requirements
• Exercise: comparing the cost of a loan and early settlement before and after the amendment

1.00pm to 2.00pm: Lunch

2.00pm to 3.30pm: Module 3, Implications for Financing Processes and Pricing

• Impact on product design, pricing and profitability
• Changes to loan origination, assessment, approval and customer onboarding
• Handling customers with existing agreements, including goodwill arrangements for early settlement
• Customer communication and handling of enquiries and complaints
• Impact on systems, calculation engines, statements and reporting
• Coordination between business, credit, operations, IT and compliance teams
• Discussion: processes that are most affected in your organisation

3.30pm to 3.45pm: Tea Break

3.45pm to 5.00pm: Module 4, Implications for Documentation

• Review of hire purchase agreements, schedules and disclosure documents under the amended Act
• Terms and clauses that need to be revised or removed
• Digital execution: electronic agreements and digital signatures, and the conditions that apply
• Record-keeping, storage and retrieval standards
• Common documentation gaps and the legal and compliance risks they create
• Workshop: reviewing sample agreement clauses and marking the changes required

End of Day 1

Day 2: Compliance Requirements and Policy Adjustments

9.00am to 10.30am: Module 5, Compliance Requirements for Banks and Financial Institutions

• Compliance obligations of the owner (bank), and the rights of the hirer and the guarantor
• Consumer protection and fair-treatment requirements
• Roles and responsibilities of credit, legal, compliance, operations and collections teams
• Regulatory expectations and supervisory focus areas
• Enforcement, penalties and litigation risks of non-compliance
• Common compliance failures and how to prevent them

10.30am to 10.45am: Tea Break

10.45am to 1.00pm: Module 6, Impact on Existing Operations: Arrears, Collections and Recovery

• Effect of the amendments on arrears management and early settlement requests
• Compliant communication with hirers and guarantors
• Do's and don'ts in collections practice
• Alignment of termination, repossession and statutory notice procedures with the amended provisions (review of the key requirements)
• Post-repossession matters and deficiency claims: points to watch
• Preventing disputes, complaints and legal escalation
• Case discussion: handling an early settlement dispute

1.00pm to 2.00pm: Lunch

2.00pm to 3.30pm: Module 7, Adjusting Internal Policies and Procedures

• Gap analysis: comparing current practices with the HPAA 2026 requirements
• Updating policies, SOPs, templates, customer letters and scripts
• Updating systems, controls and monitoring
• Staff training and awareness for frontline, collections and back-office teams
• Governance, audit trail and compliance reporting
• Workshop: preparing a compliance gap analysis and action checklist

3.30pm to 3.45pm: Tea Break

3.45pm to 4.45pm: Module 8, Case Studies and Implementation Roadmap

• Practical case studies from hire purchase operations
• Group discussion: challenges in implementing the amendments and practical solutions
• Building an implementation roadmap: priorities, responsibilities and timelines
• Group presentations and feedback

4.45pm to 5.00pm: Module 9, Wrap-up and Q&A

• Key takeaways and compliance summary
• Risk mitigation summary
• Open Q&A and practical clarification

End of Training

• Interactive lectures with practical banking examples
• Side-by-side comparison of the old and amended provisions
• Calculation exercises on interest and early settlement
• Document review workshops on sample agreement clauses
• Gap analysis and action planning workshops
• Case studies and group discussions on operational challenges
• Compliance checklists that participants can use at work
• Open Q&A and practical clarification

REYNUHADEVI RAMACHANDRAN (REYNU)

Corporate Trainer | Consultant | Financial & Business Strategist

Professional Summary

Reynuhadevi Ramachandran (Reynu) is a dynamic, results-driven corporate trainer and business strategist with over 20 years of experience in financial management, business consulting, leadership development, organizational development, HR, and administration. She brings a strong corporate foundation from the banking and financial services sector, having held key leadership roles at CIMB Bank and AEON Credit Service (M) Berhad, where she led Business Development, Sales & Marketing, Product Development, P&L and Budget Management, Operations, Insurance, and Credit Recovery.

Since transitioning into full-time training and consulting in 2019, Reynu has built a distinguished reputation for delivering transformative programs for financial institutions, SMEs, MNCs, government agencies, and start-ups. Her ability to integrate real-world experience, strategic insights, and people-centered facilitation allows her to simplify complex business challenges into practical, actionable solutions.

She is also a strong advocate for women’s economic empowerment. Through collaborations with Ministries and NGOs, she has trained over 800 B40 and M40 women in financial literacy, entrepreneurship, and personal development.

As an HRD Corp–accredited trainer, Reynu is widely recognized for her engaging personality, strategic thinking, and strong rapport with C-suite leaders, managers, and operational teams across industries.

Academic & Professional Qualifications

• Bachelor’s Degree in Finance
  • Master of Business Administration (MBA), University of Ballarat, Victoria, Australia
  • HRD Corp Accredited Trainer (Malaysia)

Areas of Expertise

• Financial Management & Financial Literacy
  • Business Development & Strategic Planning
  • Leadership & People Development
  • Organizational Development & Change Management
  • Customer Service & Customer Experience
  • Sales, Marketing & Negotiation
  • Credit Recovery & Debt Management
  • Credit Consulting & Risk Management
  • Entrepreneurship & SME Advisory
  • HR, Operations & Administrative Management

Training & Consulting Experience

HRD Corp Accredited Trainer (2019 – Present)
Delivered high-impact corporate and public programs in areas including:
• Leadership & Supervisory Skills
• Financial Literacy & Financial Management
• Business Strategy & Operational Excellence
• Customer Service & Communication Skills
• Credit Recovery, Debt Management & Negotiation
• Entrepreneurship & Women Empowerment Programs
• Personal Effectiveness, Mindset & Self-Development

Women Empowerment & Community Programs
• Trained over 800 women (B40 & M40) in financial literacy, entrepreneurship, mindset transformation, and income-generating skills.
• Worked with Women’s Ministries, NGOs, and community organizations on capacity-building initiatives.

Industry Experience

Leadership Roles – CIMB Bank & AEON Credit Service (M) Berhad
• Led Business Development, Sales & Marketing, Product Development
• Managed P&L, budgeting, and operational strategies
• Overseeing Insurance, Credit Recovery, Risk Assessment, and Customer Solutions
• Led high-performing teams across core business functions

Business & Financial Consultant
• Provides advisory in financial management, risk mitigation, business expansion, and operational optimization.
• Works with SMEs, start-ups, and corporate organizations on strategic growth projects.

Industries Trained & Consulted

• Banking & Financial Services
• Insurance & Risk Management
• Education & Training
• Telecommunications
• Logistics & Transportation
• Manufacturing & Engineering
• Retail, Services & SMEs
• Government, NGOs & Community Organizations

For training and advisory services, feel free to contact us at info@itrainingexpert.com or call us at +603 8082 3707 | +603 8074 9056 | +6012 6869 628 | +6018 2175 123

Upon successful completion of this program, you will receive a Certificate of Achievement.

1. By Credit card: You can opt to register and pay online with our latest payment integration system through our website.
2. Bank Transfer- You can also opt to bank transfer payment via local / international banks. Please send payment slip as proof of payment.
3. HRD Corp Claimable Courses Skim Bantuan Latihan Khas - Applicable to Malaysian Employer Only

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