HIRE PURCHASE AND CREDIT SALE ACT, 2013

Arrangement of Sections

PART I

PRELIMINARY

1. Short title.

2. Interpretation.

3. Application of this Act.

PART II

LICENSING OF HIRE PURCHASE OR CREDIT SALE BUSINESS

4. Requirement of a licence.

5. Application of a licence.

6. Grant of licence.

7. Issue of licence.

8. Appeal.

9. Licence to be displayed.

PART III

FORMATION AND CONTENTS OF HIRE PURCHASE OR CREDIT SALE AGREEMENT

10. Prior arrangement.

11. Requirement of hire purchase or credit sale agreement.

12. Stipulations.

13. Advertisement.

PART IV

PROTECTION OF HIRER AND BUYER

14. Conditions and warranties implied in an agreement.

PART V

RIGHTS OF HIRERS

15. Duty of dealer to inform.

16. Duty of hirer to inform.

17. Appropriation of payments.

PART VI

TERMINATION AND COMPLETION OF AGREEMENT

18. Right of hirer to determine agreement.

19. Right of buyer to determine agreement.

PART VII

RECOVERY OF POSSESSION BY SUIT

20. Right to recover possession and claim payment.

21. Payment of installments under credit sales agreement.

22. Provision for suit instituted by dealer.

23. Postponement of order for delivery.

24. Variation of conditions.

25. Postponed orders.

26. Powers of Court to deal with payment.

PART VIII

MISCELLANEOUS

27. Successive hire purchase agreement.

28. Hirers refusal to surrender goods.

29. Regulations.

30. Exemptions from registration.

31. False information.

32. Consequential amendment.

FIRST SCHEDULE

SECOND SCHEDULE

THIRD SCHEDULE

21 of 2013.

SI 14 of 2014.

AN ACT to make provision for the regulation of the form and contents of certain hire purchase and credit sale agreements, the rights and duties of parties to such agreements, the licensing of hire purchase and credit sale concerns and for purposes connected therewith.

[Date of commencement: 1st March 2014]

PART I

PRELIMINARY

1. Short title.

This Act may be cited as the Hire Purchase and Credit Sale Act, 2013.

2. Interpretation.

In this Act—

"ancillary agreement" means an option given by the dealer to the hirer in a hire purchase agreement or to the buyer in a credit sale agreement, to purchase other goods, which are ancillary to the goods specified in the First Schedule and includes a credit protection plan or an extended warranty;

"annual percentage rate" means the annual percentage rate prescribed by the Minister under section 12(2);

"Authority" means the Financial Services Authority established under the Financial Services Authority Act, 2013;

"bailment" means an agreement, other than a leasing contract, under which goods are rented to a bailee on a temporary basis in consideration for a monthly rental and property in the goods remains with the bailor;

"bailor" means a person who rents goods to a bailee under a bailment;

"buyer" means a purchaser of goods under a credit sale agreement;

"cash price" means the price at which goods are sold on a cash sale basis, where such price, after deduction of any discount, is paid at the time of the purchase;

"chargeable price" means the amount on which charges are imposed and which is equal to the difference between the cash price and the down payment;

"charges" means an amount, not exceeding the annual percentage rate of the monthly flat rate, on the chargeable price as may be prescribed by the Minister under section 12(2);

"Code" means the Civil Code of Seychelles Act;

"contract of suretyship" in relation to a hire purchase or a credit sale agreement means, a contract made at the request, express or implied of the hirer or buyer, to guarantee the performance of the hirer's or buyer's obligations under the agreement and the expression "surety" shall be construed accordingly;

"Court" means the Supreme Court of Seychelles;

"credit price" means the total sum, not being in excess of the sum of the cash price and charges accrued, payable by the buyer under a credit sale agreement in order to complete the purchase of goods to which the agreement relates;

"credit sale agreement" means an agreement for the sale of goods on credit under which the dealership in the goods passes to the buyer upon sale;

"dealer"—

(a) means a person—

(i) who lets or has let goods to a hirer under a hire purchase agreement;

(ii) who sells or has sold goods to a buyer under a credit sale agreement;

(iii) to whom the dealer's rights and liabilities under a hire purchase or credit sale agreement have passed by assignment or by operation of law;

(b) does not include a bailor;

"down payment" means an amount referred to in section 11(2)(a) and (3)(a);

"goods"—

(a) means, subject to paragraph (b), the goods and services specified in the First Schedule;

(b) does not include, with respect to hire purchase agreement, an air ticket;

"hire purchase agreement" means an agreement—

(a) for the sale of goods under which the property in the goods shall pass to the hirer upon payment by installments of the whole amount due;

(b) within the maximum repayment period of 48 months; and

(c) includes an ancillary agreement;

"hire purchase price" means the total sum payable by the hirer under a hire purchase agreement in order to complete the purchase of goods to which the agreement relates exclusive of any sum payable as a penalty or as compensation or damages for a breach of the agreement, and not exceeding the sum of the cash price and charges accrued;

"hirer" means the person who takes or has taken goods from a dealer under a hire purchase agreement and includes a person to whom the hirer's right and liabilities under the agreement have passed by assignment or by operation of law;

"leasing contract" means a financial leasing contract entered into by a company licensed under the Financial Leasing Act to provide financial leasing business;

"Minister" means the Minister responsible for finance;

"monthly flat rate" means the monthly flat rate prescribed by the Minister under section 12(2);

"prescribed" means prescribed by regulations made under this Act;

"repayment period" means a period determined under a hire purchase agreement or credit sale agreement for the payment of the balance remaining due after the down payment has been effected, which shall not exceed the maximum period as may be prescribed by the Minister;

"surcharge" means an amount payable for the late payment of an installment and which shall not exceed such rates as may be prescribed by the Minister under section 12(2).

3. Application of this Act.

(1) This Act shall apply to all hire purchase agreements and credit sale agreements entered into on or after the coming into operation of this Act.

(2) For the purpose of this section—

(a) any sale of goods or any transaction, other than a leasing contract involving the transfer or an option or agreement for the transfer of property in goods where the term of payment is by installments, shall be deemed to be a hire purchase or credit sale under this Act;

(b) where an agreement in respect of a bailment provides for the transfer, an option or agreement to transfer the property in the goods to the bailee, such agreement shall be deemed to be a hire purchase agreement under this Act.

PART II

LICENSING OF HIRE PURCHASE OR CREDIT SALE BUSINESS

4. Requirement of a licence.

(1) A person shall not carry on hire purchase or credit sale business, except under and in accordance with the terms of a valid licence issued by the Authority.

(2) Any person who contravenes this section shall commit an offence under this Act and on conviction be liable to a fine of SCR40,000 and where the contravention is continued after conviction with a further fine of SCR20,000 for every day on which the contravention continued.

5. Application of a licence.

(1) A person willing to carry on a hire purchase or credit sale business shall make an application for a licence to the Authority in such form as may be approved by the Authority.

(2) The Authority shall be the licensing and regulatory authority for the purpose of granting a licence for the hire purchase and credit sale business.

(3) Every person who is carrying on a hire purchase or credit sale business at the time of coming into operation of this Act, shall within three months of the commencement of this Act, apply for and obtain a licence to carry on such business under this Act.

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