AG warns against unlawful conduct in hire purchase transactions

Warnings have been sounded by the Attorney General’s Chambers and Ministry of Legal Affairs over complaints of alleged unfair and possibly unlawful conduct in hire purchase transactions.
The main objective of the Hire Purchase Act was 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.
“It is principally because of these reasons that the Government of Guyana enacted a modern Hire Purchase Act which came into force in 2022…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,” a statement from the Ministry on Saturday disclosed.
Members of the public and specifically, those who intend to enter into hire purchase agreements were asked to get familiarised with provisions of the Act or to secure legal counsel to do so on their behalf in relation thereto.
Section 3(1) of the Act imposes the obligation on the owner, to disclose in writing the cash price before the hire purchase agreement is entered into while 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 while 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 or 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 entitles the hirer or buyer to cancel the agreement within seven days of signing.
“Section 13 entitles 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 2 enforcing any right to recover possession otherwise than by action in a court of law. Section 28 provides for rebate on early payment of five percent per annum or such rate as may be prescribed where the balance of the hire purchase price is paid at least one month before the date it is due, calculated on the amount of such balance for the period in respect of which it was prepaid,” the Ministry outlined.
This Section also provides that where a balance remains unpaid for more than one month it may attract an interest on such balance at a rate of five percent per annum or such rate as may be prescribed, calculated on the amount of such balance for the period in respect of which it is due.
Additionally, 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.
“Obviously, the above is not exhaustive but is intended merely to highlight a few provisions of the Act which appear to be observed in breach based upon complaints that are in the public domain,” it was concluded.

Data Protection Bill
On Saturday, the AG’s Chambers also shared that Government intends to lay in the National Assembly shortly, the Data Protection Bill 2023.
“As part of its policy to engage in public consultations on important pieces of intended legislation, the Government hereby invites submissions and recommendations in relation to the draft Bill from national stakeholder organisations and members of the public,” the statement outlined.
The draft Bill can be accessed on the Attorney General and Ministry of Legal Affairs website www.mola.gov.gy and submissions and recommendations are invited within 21 days to [email protected].
Additionally, the draft Bill will be circulated to relevant national stakeholder organisations for their submissions and recommendations within a similar timeframe. (G12)