FACTS ABOUT HIRE PURCHASE AGREEMENTS

One complainant wrote to our offices asking us to examine an issue related to hire purchase. The complainant had purchased an item with the understanding that she would have 24 months for payment. The complainant having missed a payment date found herself with a balance, which far exceeded her expectation.

The Consumer Affairs Commission (CAC) wishes to remind consumers about the following points:

1. Buying cash is always the cheapest option.
2. Late payments under a hire purchase agreement (HPA) results in interest being charged to your account.
3. The bailiff cost is always the cost to the consumer.
4. Under a HPA, ownership is not transferred until all payments, including any late charges, have been made.
5. 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.
6. 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 three 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.
7. Repossession should be done between 6:00 a.m. and 6:00 p.m. Mondays to Saturdays.
8. An HPA may be terminated at any point. To do so, the consumer should write to the vendor and make all outstanding payments.

The CAC also wishes to remind consumers to read all contracts before signing and where portions are unclear to ask for an explanation from someone trustworthy.

Tell us what issues you want addressed. Send e-mail to: cacjam@infochan.com or star@gleaner.com

Write to us at: 1B Holborn Road, Kingston 10 Or call us at: 926-1650-2 or toll free 1-888-991-4470, ask for our Information Desk