User Account

All Pages

Hire Purchase, Business Management

Assignment Help:
AskLet us first see and understand those amendments. The followings are excerpts and extractions from the bill tabled in Parliament.

Clause 7 of the Bill seeks to amend Section 16 of the Hire-Purchase Act 1967 to impose new conditions on the owner in relation to repossession under this Act. Section 16 of the principal Act is amended by:


(a) by substituting for subsection (1) the following subsection:



“(1) Subject to this section, an owner shall not exercise any power of taking possession of goods comprised in a hire-purchase agreement arising out of any breach of the agreement relating to the payment of installments unless the payment of installments amounts to not more than one third Seventy-Five Percent of the total cash price of the goods comprised in the hire-purchase agreement and there had been two successive defaults of payment by the hirer and he has served on the hirer a notice, in writing, in the form set out in the Fourth Schedule and the period fixed by the notice has expired, which shall not be less than twenty-one days after the service of the notice.”;

## In a simpler language, if the balance loan is MORE than 33.33 75% of the car price that we bought, Bank can repossess the car if and only when:
i- we did not pay our monthly car loan for 2 consecutive months, then bank must issue a notice,
ii- the notice is at least 21 days
iii- after the 21 days, the notice expired and Bank can re-possess the car.

(b) by inserting after subsection (1) the following subsections:


“(1A) Notwithstanding subsection (1), if the payment of instalments made amounts to more thanone third Seventy-Five Percent of the total cash price of the goods comprised in a hire-purchase agreement and there had been two successive defaults of payment by the hirer, an owner shall not exercise any power of taking possession of the goods comprised in the hire-purchase agreement arising out of any breach of the agreement relating to the payment of instalmentsunless he has obtained an order of the court to that effect.


(1B) Where an owner has obtained an order of the court under subsection (1A) and he has served on the hirer a notice, in writing, in the form set out in the Fourth Schedule and the period fixed by the notice has expired, which shall not be less than twenty-one days after the service of the notice, the owner may exercise the power of taking possession of goods referred to in subsection (1A).”


## In a simpler language, if the balance loan is LESS than 33.33 75%% of the car price that we buy, BANKS can repossess the car if and only when:
ii- we did not pay our monthly car loan for 2 consecutive months, then bank must issue a notice,
iii- the notice is at least 21 days
iv- after the 21 days, the notice expired and Bank MUST first obtain a COURT-ORDER
v- with a court order, Banks can re-possess the car.
Clause 8 of the Bill seeks to introduce new sections 17A and 17B into Act 212 respectively to require any person who is engaged in repossession activity to obtain a permit from the Controller and to require an owner to appoint only permit holders under section 17A to undertake repossession. The principal Act is amended by inserting after section 17 the following sections:


“Permits for repossession 17A. (1) No person shall undertake repossession of goods comprised in a hire-purchase agreement without a written permit issued by the Controller.
(2) Any person who contravenes subsection (1) shall be guilty of an offence under this Act.
Offence to appoint non-permit holder

## In a simpler language, the Government via the Controller WILL APPOINT the REPO-MAN by issuing them with a written PERMIT. Gone will be those days when the public are confronted by gangsters, criminals and/or hooligan as reposessors. If they still exist, then maybe our Government are the gangsters...

17B. (1) An owner shall appoint as his agent to undertake the repossession of goods comprised in a hire-purchase agreement a person who is a permit holder under subsection 17A(1).

## Only those appointed by the Government via the Controller, are allowed to repossessed the car.

Clause 9 of the Bill seeks to introduce a new section 30A into Act 212 to regulate booking fees (New section 30A). The principal Act is amended by inserting after section 30 the following section:


“Booking fee 30A". (1) No owner, dealer, agent or person acting on behalf of the owner shall collect or accept a booking fee from an intending hirer before the receipt of the duly completed form set out in Part II of the Second Schedule by the hirer.
(2) The booking fee referred to in subsection (1) shall not exceed one percent of the cash price of the goods comprised in a hire-purchase agreement.
(3) Notwithstanding anything under this Act, the booking fee shall form part of the deposit under section 31.
(4) An owner, dealer, agent or person acting on behalf of the owner shall refund ninety percent of the booking fee to the intending hirer upon the withdrawal of the booking of the goods comprised in a hire-purchase agreement.

## Car buyer can only pay the Booking fees of not more than 1% of the car price when the Part II 9of second schedule) of the agreement is duly completed. However, car buyer will only receive 90% of the Booking fees on any cancellation of car booking after the booking fee payment.

Clause 10 of the Bill seeks to introduce new subsections (1A) and (1B) into section 31 of Act 212 to require deposit to be collected upon the signing of hire-purchase agreements and to provide remedy to the hirer in the event the owner, dealer, agent or person acting on behalf of the owner fails to deliver the goods intended for the hire-purchase agreement. Section 31 of the principal Act is amended by inserting after subsection (1) the following subsections:


(1A) An owner shall collect the deposit upon the signing of the hire-purchase agreement.


(1B) If any owner, dealer, agent or person acting on behalf of the owner fails to deliver the goods intended for the hire-purchase agreement to the intending hirer, the owner, dealer, agent or person acting on behalf of the owner shall refund the full amount of the deposit to the intending hirer.

## ALL BOOKING FEES & DEPOSITS MUST BE PAID TO THE BANK for any booking of car with hire purchase financing from any car dealer and if the dealers failed to deliver the car, the customer must be refunded in full amount.

Related Discussions:- Hire Purchase

Strategic planning, discuss the importance of strategic planning to a Zimba...

discuss the importance of strategic planning to a Zimbabwean manager

Explain how you would write a scientific grant, Question 1: a) Your su...

Question 1: a) Your supervisor and you have different expectations and you start to realise that poor communication is getting in the way of your progress. Discuss strategi

Show ways to communicate effectively, Question 1: You have been offered...

Question 1: You have been offered a job as Communications Manager in a reputed company. Show ways to communicate effectively with people from different cultural backgrounds. Il

Explain management the difference between transaction, QUESTION You hav...

QUESTION You have been appointed as the head of the treasury of an international firm with many subsidiaries abroad. The management of this multinational consists relatively of

Improve business processes, Discuss why has direct marketing continued to g...

Discuss why has direct marketing continued to grow? Using Internet technology to improve business processes • Discuss how this technology can unlock new business opportunities •

Leadership and organization, contrast the advantages and disadvantages on j...

contrast the advantages and disadvantages on just-in-learning

Business administration, b. A paper mill produces two grades of paper viz.,...

b. A paper mill produces two grades of paper viz., X and Y. Because of raw material restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons of grade Y pape

Sources of manpower recruitment by outside the company, Define the sources ...

Define the sources of manpower recruitment from outside the company. Sources of manpower recruitment by outside the company: • Friends and relatives of current workers duly

B, #quesExplain the different delivery styles that speakers can select for ...

#quesExplain the different delivery styles that speakers can select for their presentation.tion..

Features of enterprise resource planning, The general ERP model has a centr...

The general ERP model has a central data base shared by all functions of the enterprise represented by four quadrants in the figure represents the concept of enterprise resources p

Write Your Message!

Captcha
Order Assignment

Featured Services

Order Now

Popular Subjects

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd