Regulatory Alerts2013-01-01
Hire Purchase and Credit Sale Act 2013
Enacted by the President and National Assembly, this legislation empowers the Financial Services Authority to license and regulate hire purchase and credit sale businesses. It mandates standardized agreement forms, explicit pricing disclosures including annual percentage and monthly flat rates, and strict advertising standards to prevent misleading claims. The Act establishes comprehensive protections for hirers and buyers, including implied warranties of merchantable quality, clear termination rights, restricted possession recovery after half-price payment, and defined appropriation of payments across multiple agreements.
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