Georgetown: Housing Minister Irfaan Ali said when the hire purchase legislation comes into effect, consumers will no longer be at the mercy of hire purchase schemes, noting that the current system that prevails is disadvantageous to consumers.
The minister explained, “we are working on having the hire purchase legislation laid in Parliament before the recess,” adding: “I know we have been having a lot of problems with the repossession in the automobile industry and now also with the gold miners… we have persons paying as much as 80 per cent and just because of the remainder not being paid they lose the items and the money they would have already paid.”
Ali added that the bill is not only being drafted with the protection of the consumer in mind, but also that of the companies that offer hire purchase plans.
Currently, consumers who would have failed to complete payments on products bought on hire purchase would have their items repossessed by the stores, even though they have paid a large part of the sum owed.
Meanwhile, Legal Affairs Minister Anil Nandlall had disclosed that the hire purchase legislation is in its final stages. He explained that the bill is one of tremendous importance, since a key percentage of the populace uses such agreements to purchase automobiles, household appliances and furniture and can only claim ownership of their goods after they have paid the total value.
The minister further stated that the bill is directed to protect a vast majority of Guyanese who remain vulnerable to hire purchase schemes. “These legislative interventions are all intended and designed to bring more balance to the relationship and to offer a network of protection to both parties, but more particularly the vulnerable hirer.”
One of the clauses in the proposed bill states that if at any point in time a hirer defaults in the payment of an installment, the owner is entitled to repossess the hired goods, forfeit all payments made and is free to sell to a third party. Hence, persons would no longer be charged after attempting to sell a vehicle or items bought on hire purchase.
Zoning in on hire purchase agreements between auto dealers and consumers, the minister pointed out that although registration and licences of insurance are all issued in the name of the buyer, the lawful ownership of the motor vehicle remains with the auto dealer.
Miners have long complained of great losses, saying that after paying more than 50 per cent of the value of the items, they are repossessed without regard for the sometimes unavoidable spontaneous hardships the industry faces.
They pleaded for urgent interventions to bring some reprieve, principally for the small and medium scale miners.
Nandlall noted that Caribbean countries have hire purchase laws protecting their citizens and it is time for Guyana to follow suit. He added that it has been in development for over a decade. However, for one reason or the other, it was never completed and brought before Parliament.
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