CONSUMER RIGHTS AND SALES AGREEMENTS PART II

Misleading Advertisements
During this period, everyone is advertising a new sale or attractive bargains. Some vendors are however unscrupulous and will take advantage of consumers’ desire to acquire as many new items at Christmas at affordable prices.

ADVICE:
Pay very careful attention to every detail of advertisements. Read the fine print. Look out for such statements as “Conditions Apply”, and seek to get them clarified, before making a purchase.

Hire Purchase, Lay Away and Lease Sale Agreements
Such Sale agreements become increasingly popular around the Christmas Season. A lot of consumers want a new bed, living room or bedroom suite. Many of the larger furniture and electronic item dealers, offer “no deposit” deals, where you pay the first month’s installment only to get the item and “One dollar down” deals. It is very important that consumers know their rights under these sale agreements that they may know what to expect so that they may avoid being swindled or taken advantaged of. Note the following advice:

Lay-Away

A layaway plan is an agreement between a vendor and his/her customer to pay for an item over a specific period of time. The average layaway plan has the following components:

• A deposit is made on a specific item.
• The seller removes the item from display and puts it aside.
• The balance is paid off in the agreed installments by an agreed date.
• The item is collected/delivered to the consumer.
There is no set system by which consumers are required to make payments; instead, this has to be negotiated on a case-by-case basis by the vendor and consumer. Entering into a layaway agreement does not lessen your right as a consumer.
You should still expect to be provided with a product that:

• serves the purpose for which you bought it
• has no defects, unless this was pointed out to you
• will not cause you harm if used properly
• and one that has a reasonable life span, if properly maintained.

Hire Purchase & Conditional Sale Agreements

Hire purchase and conditional sale agreements (e.g. Lease financing) are arrangements between the buyer and seller, which allow the buyer to keep an item and transfer ownership by making an initial payment and subsequent monthly installments for a set period of time. Lease financing arrangements are most commonly used in the automotive industry.

Points to remember under a Hire Purchase Agreement (HPA):

1. Late payments under a HPA results in interest being charged to your account.
2. The bailiff cost is always the cost to the consumer.
3. Under a HPA ownership is not transferred until all payments including any late charges have been made.
4. The vendor should be notified about any change of address during the course of the agreement or a change in your financial position, which could impact on your ability to make payments.
5. If 2/3 or more of the cost has been paid under a HPA, repossession can only take place after the consumer has been in arrears for 3 months or more and the vendor has served a notice stating that the account is in default, as well as, a notice stating their intent to repossess the item.
6. Repossession should be done between 6:00 am and 6:00 pm Monday to Saturday.
7. An HPA maybe terminated at any point. To do so, the consumer should write to the vendor and make all outstanding payments.

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