The Hire Purchase (Amendment) Act 2026 took effect on 1 June 2026. For auto finance companies and non-bank credit providers, the Act changes how HP contracts are executed across your entire dealer network.

At the same time, under the Consumer Credit Act, BNPL operators, leasing companies, and non-bank credit providers are required to obtain a CCC licence, with a six-month transition period. Both mandates converge on the same operational need: compliant digital signing infrastructure.

The 4 dealer documents affected:

✅ HP agreements can now be executed with electronic or digital signatures.
✅ Balloon payment documents fall under the new EIR disclosure and reducing balance requirements.
✅ Insurance assignment forms are part of the HP documentation workflow affected by the Act.
✅ Settlement forms must now meet the new compliance framework.

Additional compliance considerations:

✅ Identity verification is mandatory before entering into a hire purchase agreement.
✅ CCC licence requires credible identity verification and signing infrastructure as a prerequisite.
✅ Manual dealer networks relying on paper signing risk customer drop-offs and compliance gaps.

✅ Digital signing at the dealer level can reduce HP contract cycle times, directly addressing customer drop-offs during the financing process.

Grace period ends March 2027.