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WHAT ARE THE PROCEDURES INVOLVED DURING THE REPOSSESSION ?

The Hire Purchase Regulations 1976 provides the procedure for actual repossession as follows :

When taking the possession of goods to be repossessed, the finance company, before taking possession has to inform the hirer the name and address of the finance company to which he or she belongs.

If the finance company sends his agent to repossess the goods, then the agent has to show the hirer an authority card issued by the finance company and his identity card.

An authority card must bear the photograph, name and address of the agent, the name and address of the finance company, the nature of appointment of agent and the signature of the authorized person of the finance company

The finance company or agent also has to show the hirer or the occupant of the hirer's premises, his identity card before repossessing the goods.

WHAT ARE THE PROCEDURES AFTER THE GOODS IS BEING REPOSSESSED ?

Where the finance company takes possession of the goods that were comprised in a hire purchase agreement, the finance company must deliver to the hirer personally a document which shall set out

• a short description of the goods and
• the date on which the finance company took possession of the goods
• the time at which the finance company took possession of the goods
• the place where the finance company took possession of the goods

acknowledging receipt of the goods.

Where the hirer is not present at the time of repossession, the finance company must send such document to the hirer immediately after taking possession of the goods.

Within 21 days after the finance company has taken possession of goods, the finance company must serve on the hirer and every guarantor of the hirer a Notice To Hirer Under Section 16.

If the notice is not served, the rights of the finance company under the hire purchase agreement will thereupon cease.

However, if the hirer exercises his or her rights under the hire purchase agreement to recover the goods taken possession by the finance company, the notice is deemed to have been duly served on the hirer.

Costs involved in the repossession will be borne by the hirer :

• the cost of repossession
• the cost incidental of taking possession and
• the cost of storage