‘UNCONSCIONABLE DEAL’

Southland Times, Issue 25308, 11 June 1935, Page 4

‘UNCONSCIONABLE DEAL’

HIRE PURCHASE AGREEMENT. COMMENT BY MAGISTRATE. These are rather unconscionable deals,” said Mi' W. H. Freeman, S.M., at the Gore Magistrate’s Court yesterday during the hearing of a judgment summons on which an Invercargill firm of motor-cycle dealers proceeded against a farm labourer following a judgment by default of a hire-purchase agreement. The judgment debtor stated that he would have njade an effort previously to have paid the debt, but he did not consider that he owed the money. He had purchased a motor-cycle for £7O in 1930, paying £33 deposit. He paid a further £7 in instalments, but owing to the depression he had to take the machine back eight months after he purchased it. In 1932 the firm took judgment against him for the balance of £3O. He had intended to defend the action, but the train was delayed and judgment had been given prior to his arrival. He consulted a solicitor who had advised him that he would have to pay since he had signed a hirepurchase agreement. The position was that the firm had been paid £4O by the debtor, it had received the motorcycle back and was still suing for the whole balance remaining. “These are rather unconscionable deals,” said the Magistrate. “A man pays £4O and has the motor-cycle taken from him and yet the law says he is still liable. For some reason the legislature has not seen fit to pass legislation to deal with cases of this sort. The same position would apply if he had only paid £l. Certain people would take, advantage of the purchaser in such a case.” After further evidence had been heard the Magistrate said that surely the firm would make an allowance on account of the value of the machine as returned. He supposed, however, that the firm would contend that the machine was returned in a valueless condition. Actually it was probable that the machine had been resold at a substantial figure. Finally the Magistrate adjourned the case for a fortnight to give counsel for the firm there to communicate with his principals to see if an allowance could be made to the debtor on account of the value of the machine.