For consumers fearing confrontations with sellers’ agents trying to force their way into their homes to seize goods bought on hire purchase, relief is on the horizon.
Whenever the National Assembly convenes for its next sitting, the government is expected to introduce several pieces of legislation, including a new Hire Purchase Bill, which seeks to make provision for the regulation of hire-purchases, credit sales, and conditional sale agreements.
The four-part Bill, which has been gazetted, is in the name of Minister of Tourism, Industry and Commerce Oneidge Walrond.
If passed and enacted, the Bill will make it illegal for sellers or their agents to forcibly enter any premises to seize goods.
It also compels the sellers to allow the buyer the right to determine the hire-purchase agreement or conditional sale agreement and prevents sellers from absolving themselves of liability in cases where any person acting on their behalf in connection with the formation or conclusion of the agreement is found in default.
These particular provisions are contained in Part II of the Bill, which sets out the requirements relating to hire-purchases, credit sales, and conditional sale agreements.
According to this section of the Bill, it would be a requirement for the owner or seller to state in writing, a price at which the goods may be purchased for cash. It also specifically provides conditions under which those purchasing goods may terminate the agreement, namely, at any time before the final payment.
Under the provisions of the bill, this terminations would have to occur in writing and include delivery of the goods at the same time to the owner or seller, if the notice of termination is to have effect. A cancellation could also be initiated within seven days of the agreement.
The Bill also proposes that a seller be required to supply any documents and information requested by a hirer or buyer within 14 days. For the period during which the seller fails to comply, the Bill says they would not be entitled to enforce the agreement, and further, if the default continues for a period of one month, the defaulter would be liable on summary conviction to a fine of $50,000.
Clause 9 further proposes that every agreement shall have an implied warranty that the hirer or buyer shall have and enjoy quiet possession of the goods, a right to sell the goods at the time the property passes and a warranty that the goods are free from any charge or encumbrance.
The warranties and conditions shall be implied notwithstanding any agreement to the contrary, the Bill proposes.
In Part III, the Bill deals with recovery of possession and other remedies.
Most notably, Clause 17 states that where the hirer or buyer has paid 50 per cent or more of the hire purchase price or total purchase price, the seller would only be able to recover possession of the goods by action in a court of law.
In cases where less that 50 per cent has been paid, Clause 23 specifies that the right to recover possession would only be exercised if notice of such intention has been provided. “The owner or seller may, on the expiration of 21 days after the notice has been given to the hirer or buyer, enforce his right to recover possession of the goods,” it states.
Should the buyer act to prevent any such recovery, they would be liable for conversion of the goods which may amount to an offence liable to a fine of $50,000.
Part IV specifies those sections that would apply to agreements signed before the bill becomes law and gives the Minister the power to make regulations.
