HIRE-PURCHASE DEALS.

Auckland Star, Volume LXII, Issue 264, 7 November 1931, Page 19

HIRE-PURCHASE DEALS.

FINANCE CORPORATIONS. AMENDING BILL PASSED QUESTION OF REGISTRATION. (By Telegraph—rrcss Association.) WELLINGTON, Friday.

Moving the second reading of the Chattels Transfer Amendment Bill in the House of Representatives to-day, the Hon. W. Downie Stewart, Minister of Finance, said the chattels referred to were all kinds commonly bought on the hire-purchase system.

For the purpose of financing hire-pur-chase transactions, a trade usage had developed by which the price of the chattel was paid to the manufacturer or dealer by a finance corporation established for that purpose, and a hire-pur-chase agreement was then made between the conditional purchaser and the finance corporation. It had recently been decided by the Court of Appeal that such corporations were not dealers within the meaning of the Chattels Transfer Act and their agreements, although of precisely the same character as ordinary hire-purchase agreements, were not entitled to the benefits conferred by the measure. The chief of such benefits was that these agreements did not require to be registered as bills of sale or other instruments. The purpose of the present bill was to establish as law what prior to the decision of the Court of Appeal had been understood to be the legal position. The Leader of the Opposition, Mr. H. E. Holland, asked whether any protection could be afforded to purchasers who might have paid up to the extent of three-quarters of the price of a motor car and who temporarily \?ere unable to continue payments owing to the present financial conditions.

Mr. J. T. Hogan (Independent, RangiLikei) drew attention to the widespread growth of the hire-purchase system. He said it was time Parliament took the matter up in the interests of weakminded people who could not see the difficulties into which the system was liable to lead them. He suggested, during the recess, the Minister should go into the question of the registration of hire-purchase agreements, if the sum involved exceeded a certain amount.

Replying to Mr. Hogan and other members, Mr. Stewart said the question of registration was worth investigation and he would bring it under the notice of the Minister of Industries and Commerce. He could not say offhand whether it would be possible under the Mortgagors Relief Act to protect purchasers who had paid off the greater part of the amount owing. He would see whether the Act could be modified to meet the view expressed by Mr. Holland. If that could be done a provision would be inserted in the_ Mortgagors Relief Amendment Bill, which was not yet quite ready. The bill was read a second time, put through the remaining stages and passed.