4.—(1) A motor vehicle dealer shall not exercise any right to retain a deposit, or any part of a deposit, paid by a consumer in relation to or in contemplation of a motor vehicle sale contract unless the motor vehicle dealer has complied with regulation 3.
(2) Subject to this regulation, a motor vehicle dealer shall not exercise any right to retain a deposit, or any part of a deposit, paid by a consumer in relation to or in contemplation of a motor vehicle sale contract involving financing arranged by the motor vehicle dealer on behalf of the consumer, unless the motor vehicle dealer has —
(a)
within a reasonable time, applied for a loan from a financial institution on behalf of the consumer in respect of the motor vehicle sale contract on the terms agreed by the consumer; and
(b)
if the loan application was rejected by the financial institution, provided the consumer upon his request with a written statement from the financial institution in accordance with paragraph (3).
(3) The written statement referred to in paragraph (2)(b) shall contain the following particulars:
(a)
name of the financial institution;
(b)
name of the motor vehicle dealer, its address and the business registration number, company registration number or other equivalent registration number of the motor vehicle dealer;
(c)
name of the buyer, his address and his NRIC number, FIN number or passport number;
(d)
the make and model of the motor vehicle and its selling price;
(e)
the date when the application for the loan was made;
(f)
the amount of the loan applied for; and
(g)
a statement that the loan has been rejected.
(4) Paragraph (2) shall not apply if the motor vehicle dealer proves that his failure to comply with the requirements of paragraph (2)(a) and (b) did not cause or contribute to the circumstances resulting in the retention of the deposit.