Protection For Hire Purchasers

Northern Advocate, 28 July 1939, Page 5

Protection For Hire Purchasers

[Per Press Association. Copyright .l

WELLINGTON, This Day

Greater protection for purchasers under the hire purchase agreements is given by the Hire Purchase Agreements Bill, which was introduced and read a first time in the House yesterday. The purpose of the Bill is to prevent unconscionable action by vendors under the hire purchase system in cases where purchasers have defaulted in making their payments, or have otherwise failed to carry out the terms of the agreement.

While proper remedies are preserved for vendors, in such cases purchasers are given reasonable opportunities for retrieving their rights to possession and the use of the goods they have purchased. The Bill requires a vendor to refrain for 21 days from selling any goods seized, except with the consent of the purchaser, and in the meantime notice must be given to a purchaser setting out his indebtedness and the value of the goods, A purchaser may then, by bringing his payments up to date and paying costs of seizure, obtain re-delivery of the goods. If the circumstances prevent the purchaser from taking advantage of these provisions, and he loses his right to retain the goods, further provision is made enabling him to recover from the vendor a fair proportion of the amount already paid. This amount will depend on the value of the goods at the time of seizure. Similarly the vendor will not be able to recover from the purchaser, on seizure of goods, any sum which, together with the value of the goods, exceeds the original purchase price. Protection of Guarantors. Suitable provision is also made for the protection of guarantors of purchasers’ obligations, but, .at the same time, the Bill preserves reasonable

and proper rights of the vendor against guarantors. The court is given power to reopen unconscionable hire purchase transactions .and adjust the rights and liabilities of parties on a fair basis. A further provision protects the position of a person iwho has a lien for work done to any goods subject of a hire purchase agreement unless the agreement prohibits the creation of any lien. i ! : • ! ■