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Hire Purchase and Leasing (Consumer Credit Act 1995 (Implied Terms…
Hire Purchase and Leasing
Consumer Credit Act 1995
Statutory requirements
Section 58
Notification in writing
Section 57
Notification of cash price before agreement
Section 59
No agreement until 57+58 are complied with
Implied Terms
Section 76
Merchantable quality + fit for purpose
Reasonable standard
Section 77
Sale by sample
Section 75
Description of goods
let by sample as well as description
Section 79
Exclusions
Section 74
The owners title right to sell
Termination of HPA
Section 63
Hirer terminates agreement then must buy/return goods
Hirer can terminate at any time before the last instalment
Paid/pay sums necessary to reach half of HP price
Pay excess damages
Must notify
Allow owner to take possession.
Any clause restricting termination is void.
Leasing
Owner allows a 3rd party to use goods in exchange for rent
Short/Long term leases
Financial/Operating leases
Financial
Owner not responsible for repair/maintenance
Operating
Owner is responsible for repair/maintenance
Hire Purchase
Bailment-regular instalments
Bailee may buy
Option to buy
Restrictions on owners rights
Section 64
Recovery of goods
cannot recover once 1/3 or more has been paid.
Section 66
The courts discretion
Court order needed if less then that is paid.
Section 62
Entry to premises
to recover goods only with hirers consent
HPA- Transfer of Ownership
Section 70 Valid Sale
Sale in an open/public market.
3rd party bought in good faith and knew nothing of lack of title of goods