The Government of Guyana is proposing amendments to the Hire Purchase Act to clarify the jurisdiction for hire purchase disputes, according to Attorney General and Minister of Legal Affairs Mohabir Anil Nandlall. The Hire Purchase Amendment Bill is one of six pieces of legislation scheduled for presentation in the National Assembly on June 5.
Nandlall noted that these amendments build on reforms introduced through the Hire Purchase Act passed in 2022, which aimed to enhance protections for consumers engaged in hire purchase agreements. He described the previous law as heavily favoring the owners of goods, stating, “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.”
Under the earlier legal framework, owners had the right to repossess goods if payments were missed, often without prior notice. The 2022 legislation introduced several safeguards for consumers, including the requirement for written notices before repossession and court oversight in specific situations. Nandlall explained, “If a particular percentage of the installments are paid, then you can’t repossess without going to court.”
The Attorney General also pointed out that the amendments aim to improve access to justice by allowing hire purchase disputes to be heard in either the Magistrates’ Court or the High Court. Previously, such matters could only be addressed in the High Court, which posed challenges for individuals residing 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 stated. However, he acknowledged that differing interpretations of the legislation by judges and lawyers led to confusion regarding which court had jurisdiction over these 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 explained. After consultations with members of the judiciary and the legal profession, the government decided to amend the law to eliminate any uncertainty.
Nandlall remarked, “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.” The amendments will confirm that litigants can approach either the High Court or the Magistrates’ Court, and 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 Magistrates’ Court,” he added. The proposed amendment is anticipated to provide greater clarity for consumers, businesses, and legal practitioners involved in hire purchase disputes.
Source: snn.gy
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