The Attorney General’s Chambers says it has noted with great regret, the complaints of many in respect of alleged unfair and possibly unlawful conduct in hire purchase transactions.
A statement yesterday from the AG’s Chambers said it is because of these reasons that the Government of Guyana enacted a modern Hire Purchase Act which came into force in 2022.
“The main objective of the Act is to bring greater balance and fairness in the relationship between the hirer and owner which was skewed heavily in favour of the former over the latter, prior to the enactment of the legislation.
“Unfortunately, based upon the complaints received, many of which have been circulating on social media, it appears that provisions of the Hire Purchase Act are not properly implemented or complied with, or are being completely ignored”, the statement said.
It noted that a copy of the legislation can be obtained from the Parliament Office, Public Buildings at an affordable price or can be accessed on the Official Gazette website online at https://officialgazette.gov.gy/index.php/publications/1996-extraordinary-gazettes-12th-december-2022-act-no-23-of-2022-the-hire-purchase-act-2022.
Members of the public, particularly those who intend to enter into hire purchase agreements were urged to familiarise themselves with the provisions of the Act.
The statement cited key sections of the Act with a view to bringing greater awareness to the protection which they accord to the parties in a hire purchase transaction.
Section 3(1) imposes the obligation on the owner, to disclose in writing the cash price before the hire purchase agreement is entered into.
Section 3(4) requires all hire purchase agreements to contain clauses that state the hire purchase price and the cash price of the goods; the amount of instalments required to pay the hire purchase price; and the date each instalment is payable.
Section 5 gives the right to the hirer or buyer to terminate the agreement.
Section 6 lists the clauses in agreements which, if included, will be void and therefore unenforceable. These include, among other things: giving an owner or seller the authority to forcibly enter premises to possess goods; denying the hirer or buyer of the right to terminate/determine the agreement; subjecting a hirer or buyer on termination of an agreement to a liability which is greater than the liability provided for under the Act; or clauses which relieve the owner or seller or any person acting on his behalf from liability for any acts or defaults.
Section 10 empowers the hirer or buyer to cancel the agreement within 7 days of signing.
Section 13 enables a hirer or buyer who has cancelled under section 10 to recover monies paid under the agreement, subject to a restocking fee charged by an owner or seller to a maximum of 10 per cent.
Section 23 states that where the hirer or buyer has paid seventy percent or more of the hire-purchase price or total purchase price, the owner is prohibited from nenforcing any right to recover possession otherwise than by action in a court of law.
Section 29 provides that in cases where a hirer or buyer has paid less than seventy
percent of the hire purchase price the owner or seller must give at least twenty-one days prior notice of his intention to recover possession before he can enforce his right to recover possession of the goods.
