The Hire Purchase (Amendment) Act 2026 took effect on 1 June 2026. For co-operatives, this is an opportunity to move away from the manual, paper-based filing that has long delayed member-facing workflows.

HP agreements, member consent forms, and payroll deduction authorizations can now be executed digitally, replacing the archaic filing processes that slow down salary deduction workflows for active members.

What you need to know:

✅ HP agreements can now be executed using electronic or digital signatures.
✅ Member consent forms and payroll deduction authorizations can now also be executed digitally as part of the HP workflow.
✅ EIR disclosure is now mandatory under the reducing balance method.
✅ Rule of 78 and flat-rate interest calculations are abolished.
✅ Identity verification is mandatory before entering into a hire purchase agreement.

✅ Digital execution can accelerate salary deduction workflows and improve member service delivery.

Grace period ends March 2027.