The Government is seeking to clarify where hire purchase disputes can be heard through amendments to the Hire Purchase Act, according to Attorney General and Minister of Legal Affairs Mohabir Anil Nandlall.
Speaking during his Issues in the News programme, Nandlall explained that the Hire Purchase Amendment Bill is among six pieces of legislation scheduled to be tabled in the National Assembly on June 5.
The Attorney General said the amendments build on reforms introduced through the Hire Purchase Act passed in 2022, which strengthened protections for consumers purchasing goods through hire purchase arrangements.
Before those reforms, Nandlall said the law heavily favoured the owner of the goods.
“It was a harsh and very oppressive law, because a person can pay most of the installments, but misses one for whatever reason, and the owner can come and retake the goods, and that person would have lost all the payments made,” he said.
Under the previous legal framework, owners could repossess goods if payments were missed, often without notice, depending on the terms of the agreement.
Nandlall noted that the 2022 legislation introduced a range of safeguards for consumers, including requirements for written notices to be served before repossession and court oversight in certain circumstances.
“If a particular percentage of the installments are paid, then you can’t repossess without going to court,” he explained.
The Attorney General also highlighted provisions aimed at improving access to justice by allowing hire purchase matters to be heard in either the Magistrates’ Court or the High Court.
Prior to the reforms, such matters could only be brought before the High Court, creating challenges for persons living outside Georgetown.
“In the Hire Purchase Act, we provided that litigation can commence in the Magistrates Court, that is, in the district where the transaction occurred, or in the high court,” Nandlall said.
However, he explained that differing interpretations of the legislation by judges and lawyers created uncertainty regarding which court had jurisdiction to hear such matters.
“Some judges were interpreting the language to mean that the case can only be filed in the high court. Some judges were interpreting to say that the case can only be filed in the magistrates court,” he stated.
Following consultations with members of the judiciary and the legal profession, the government decided to amend the law to eliminate any uncertainty.
“I decided to make the necessary amendments to the Hire Purchase Act to ensure that it is clear, and there Is no ambiguity anymore in terms of which court one can go,” Nandlall said.
He added that the amendments will confirm that litigants can approach either the High Court or the Magistrates’ Court. Additionally, restrictions on the value of hire purchase claims that can be heard in the Magistrates’ Court have been removed.
“Any case of whatever value can now be instituted in the Magistrate court,” the Attorney General said.The proposed amendment is expected to provide greater clarity for consumers, businesses and legal practitioners involved in hire purchase disputes.
