Duties_of_Hirer

The Duties Of Hirer To pay instalments in accordance with the said agreement. Not to remove, sell or dispose off the goods without the consent of the owner. To inform the owner of any changes of address within 14 days. Keep all receipts and relevant correspondent relating to the hire purchase agreement, and the guarantee card. Make sure the contents of the hire agreement are the same as in the Notice of Second Schedule. Repossession The owner has the right to repossess any goods when:- a ) the hirer defaults in 2 successive monthly instalments or the last instalment. In the case where the hirer is deceased, defaults in 4 successive monthly instalments. (b) The owner has served upon the hirer a notice in writing of his intention to repossess the goods in the form setout in the Fourth Schedule of the Hire Purchase Act, 1967, and (c) The owner has given another notice 14 days after the above notice in (b) has been served. (d) A period of 21 days has expired after the service of the Fourth Schedule. A hirer who returns the goods within 21 days after the service of the Fourth Schedule Notice shall not be liable to pay:- (a) the cost of repossession; (b) the cost incidental to taking possession; and (c) the cost of storage The owner is required to give a notice (Fifth Schedule) to the hirer and every guarantor within 21 days after the goods have been repossessed giving the hirer the opportunity to settle his obligations. The owner must acknowledge taking possession by giving to the hirer a document acknowledging receipt of the goods, description of the goods, the date, the time and the place the owner took possession of the goods. The owner has the right to sell the repossessed goods upon the expiry of 21 days after the Fifth Schedule has been served upon the hirer The hirer has the right prior to the expiry date of the Fifth Schedule, to request the owner to return the goods to him:- (a) After paying all arrears with interest due and the cost incurred by the owner (cost of repossession, storage, maintenance, repairs) or (b) After settling in full the balance due and cost of repossession, storage, maintenance and repairs. The hirer has the right prior to the expiry date of the Fifth Schedule, to introduce to the owner a prospective buyer who is willing to pay for cash at a price not less than the estimated value of the goods set out in the Fifth Schedule. Disposal Of Goods After Repossession Where an owner takes possession of any goods comprised in a hire purchase agreement and intends to sell them:- (a) by public auction, he shall be required to serve on the hirer a copy of the notice of such public auction; or (b) otherwise than by public auction, he shall give the hirer an option to purchase the goods at the price at which he intended to sell them if that price is less than the owner's estimate of the value of the goods repossessed as stated in the Fifth Schedule. Penalty Any person found guilty of an offence under this Act shall be liable to a fine not exceeding $3,000 or imprisonment not exceeding 6 months or both. Any person who sells the goods purchased under a hire purchase agreement without the consent of the owner is committing an offence under this Act and it found guilty, shall be liable to a fine not exceeding $10,000 or imprisonment not exceeding 3 years or both. 1. IS A HIRER AT FAULT IF REMOVES GOODS WITHOUT THE KNOWLEDGE OF THE OWNER (FINANCE INSTITUTION) UNDER A HIRE PURCHASE AGREEMENT' It is an offence under Section 37 Hire Purchase Act 1967 if a hirer removes goods belong to the owner (financial institution) under hire purchase agreement. 2. IS A HIRER WOULD BE AT FAULT IF SELLS GOODS THE KNOWLEDGE OF THE OWNER (FINANCE INSTITUTION) UNDER A HIRE PURCHASE AGREEMENT' It is an offence under Section 38 Hire Purchase Act 1967 if hirer disposes or sells for any goods and in anyway under hire purchase agreement without knowledge of owner (financial institution). 3. WHAT ARE THE PRODUCTS THAT CAN BE OBTAINED THROUGH HIRE PURCHASE' The following products are governed by Hire Purchase Act 1967: All consumer goods that are purchased for personal or family usage, or for household use. All motor vehicles as listed below: Vehicles for handicapped people Motorcycles Motorcars including taxis and rental motorcars. Vehicle for goods (where maximum weight allowed is not exceeding 2540 kilograms). 4. WHAT ARE THE RIGHTS OF THE OWNER (FINANCIAL INSTITUTION) UNDER HIRE PURCHASE ACT 1967' Owners (financial institution) have the following rights: To repossess the product if the hirer defaults payments. To urge the hirer to insure the motor vehicle. To impose a fee on the hirer for the purpose of enforcing the terms of the Hire Purchase Agreement. 5. WHAT ARE THE RIGHTS OF THE GUARANTOR UNDER HIRE PURCHASE ACT 1967' Under the Hire Purchase agreement, the guarantor has the following rights: To receive a copy of the agreement. To be discharged of any liability as soon as the amount owed to the financial institution is fully paid. To take legal action against the hirer if the hirer does not discharge his responsibility. To receive compensation from the hirer for all claims from the financial institution once the guarantor paid the amount claimed by the financial institution. 6. WHAT ARE THE RIGHTS OF THE HIRER UNDER HIRE PURCHASE ACT 1967' The hirers have the right to: Receive a copy of the Hire Purchase agreement Obtain any information regarding the hirer’s account Request for Balance Statement (once every three months) Settle the HP facility earlier than scheduled Terminate the HP agreement at any time. 7. WHAT IS THE PROCEDURE BEFORE REPOSSESSION UNDER HIRE PURCHASE AGREEMENT' The owner should have sent these notices: Fourth Schedule Notice – This is a 21 days written notice to inform the hirer of the owner’s intention to repossess the product 14 days after the date of the Fourth Schedule Notice, a reminder will be issued to inform the hirer that the owner intends to regain possession of the product after the expiry of the Fourth Schedule Notice. 8. WHAT IS THE NEXT COURSE OF ACTION FOR THE HIRER' The hirer can pay the amount due as appeared on the Fourth Schedule Notice before the expiration of the 21 days as stated in the notice. By making the payment, the product will not be repossessed. The hirer can return the product to the owner (financial institution) before the 21 days of the Fourth Schedule Notice expired. The hirer is required to settle the remaining balance after the value of the product is considered. 9. WHAT IS MEANT BY HIRE PURCHASE' Hire purchase is a leasing activity where the hirer has the option to buy the product. Payment is made in instalments. You are the hirer and the financial institution that provides the loan is the owner. Ownership will only be transferred to the hirer after all instalments have been paid up. 10. WHEN CAN THE OWNER EXERCISE HIS RIGHTS TO REPOSSESS PRODUCT UNDER HIRE PURCHASE AGREEMENT' The owner can repossess the motor vehicle leased to the hirer when: The hirer fails to make payment for two instalments successively. The hirer declines to pay the last instalment In case the hirer pass away, instalment are not paid for four consecutive months. 11. WHAT IS A HIRE PURCHASE ACT 1967 FROM A LEGAL POINT OF VIEW' All hire purchase transactions are controlled by Hire Purchase act 1967. The terms and conditions contained in the Hire Purchase agreement, the lawful rights, responsibility and duty of the hirer, and owner, are explained in this act. This hire purchase act is under the control of Domestic Trade and Consumer Affairs Ministry. 12. WHAT ARE THE CONTENTS OF HIRE PURCHASE AGREEMENT' Every hire purchase agreement must include the following important information; Description of product. That calculation of amount to be paid. A minimum deposit. The terms charges and annual interest rate. Late payment charges. The starting date of the lease. The number of instalments. Amount of monthly instalments.