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Facts You Need to Know About Hire Purchase
Who is the Hirer?
The Hirer is the person who takes the goods for use. i.e. the consumer.
Who is the Owner?
The Owner is the person who lets or rents the goods. .i.e. the store/supplier.
FACTS:
- A copy of the Hire Purchase Agreement must be delivered to the consumer within seven (7) days of signing.
- When you take goods on "hire purchase", you agree to hire or rent the item until you have paid for it in full.
- It is a myth that the item cannot be repossessed if the consumer has paid 70% or more of the hire purchase price, It can be repossessed through the courts.
- If the supplier erred in repossessing and selling the item, the company would have to get back the item for the consumer or replace it to the satisfaction of the consumer.
- Goods purchased by a consumer under any hire purchase agreement belong to the company until you have paid the final installment.
- The consumer is liable and will be fined if there is any obstruction by the consumer of the legal repossessing of an item.
- If you change address within the duration of the HP contract you must inform the seller of the new address where the goods are now located. If you do not and the supplier becomes aware, the item can be repossessed even though the account is not in arrears, since a fundamental term of the agreement has been breached.
- When a consumer refinances a HP agreement, the items on the previous agreement are used as collateral for the refinancing. This means that should consumers breach the second agreement, the store can repossess all items including those purchased under the first agreement.
- Hire purchase always costs you more in the long run (HIGHER PURCHASE). You may end up paying almost two times the cash price when you buy on hire purchase.
Remember, the power is yours!
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