Law passed to allow courts to hear all hire purchase disputes

The National Assembly on Monday passed legislation allowing hire purchase disputes to be heard in either the High Court or Magistrates’ Courts regardless of the value of the claim, a move the government said would make it easier and quicker for consumers and businesses to resolve disputes. The Hire Purchase (Amendment) Bill removes uncertainty over which court has jurisdiction to hear claims under the Hire Purchase Act, ending confusion created by monetary limits under the Summary Jurisdiction (Petty Debt) Act that the government said had led to procedural delays and inconsistent outcomes. Tourism, Industry and Commerce Minister Susan Rodrigues said the amendment was intended to strengthen the administration of justice by ensuring claims arising under the Hire Purchase Act could be filed in either court, irrespective of their monetary value. “Its primary purpose is to remove ambiguity in Section 32 of the Principal Act by expressly providing that any claim or other proceeding arising out of the Hire Purchase Act may be instituted in either the High Court or a Magistrate’s Court irrespective of the monetary value of the claim,” Rodrigues stated. She said uncertainty under the existing legal framework had created unnecessary procedural obstacles affecting consumers, businesses and financial institutions. The amendment is also expected to improve access to justice by giving litigants greater flexibility in where they file claims arising from hire purchase, credit sale and conditional sale agreements. The legislation complements the Hire Purchase Act, enacted in 2022, which introduced a modern legal framework governing hire purchase agreement, including requirements for repossession notices and additional protections for consumers who default on payments. Hire purchase agreements allow consumers to acquire goods through instalment payments while ownership remains with the seller until the final payment is made. The government said the amendment would ensure disputes under those agreements can be resolved more efficiently without jurisdictional challenges delaying court proceedings.