By Rehana Ahamad

DURING a previous sitting of the National Assembly, the landmark Hire Purchase Bill 2020 was referred to a Special Selection Committee for consideration and consultations. As a consequence, the Ministry of Tourism, Industry and Commerce has issued a notice inviting all stakeholders to provide feedback on the bill.
“Interested persons are invited to examine the bill with a view of making any amendments, modifications, additions and/or comments and to submit same, by email, to the Chambers of the Honourable Attorney General and Minister of Legal Affairs at the following email address: johnmfraser@mola.gov.gy,” the published notice read.
In an invited comment, Minister of Tourism, Industry and Commerce, Oneidge Walrond explained that following the bill’s presentation to the National Assembly earlier in the month, some gaps were detected in the consultation process.

“Most of the persons who are involved in hire purchase felt that they didn’t really get a chance to have their voices heard,” Minister Walrond explained.
She is hopeful that the consultation process could be wrapped up within the next few weeks, so that the bill can be tabled in the National Assembly as soon as possible.
“I am hoping that this could be done right after we finish the budget debates,” Walrond posited.
Minister Walrond believes that once enacted, the bill will transform the lives of the majority of Guyanese consumers who are unable to purchase cash, items needed to improve their lives. The minister made specific reference to items such as washing machines and motorcars that are usually acquired through credit purchases, at great risks to buyers.

“What we have found is because of [the] lack of [a] regulatory framework for these types of arrangements, common people are being taken advantage of,” Walrond had said during a recently televised NCN programme.
She explained during her engagement with producer Mark Watson, that the Hire Purchase Bill will serve as a protection tool for buyers against “onerous” and “unscrupulous” business establishments.
Minister Walrond gave an example of persons having their items repossessed without notice, having almost completed payments for the items. “We have had hundreds of complaints of these hire-purchase arrangements that have particularly disadvantaged the people,” the Member of Parliament noted.

COOLING-OFF PERIOD

Once the new regulations are in place, Guyanese buyers will have the luxury of mending mistakes that come from impulse purchases. According to Minister Walrond, the bill provides for seven days of “cooling-off period,” which would give buyers the opportunity to return an item that they have regretted buying.
“The seller has to accept it back from you… we have all had buyers’ remorse… you take it home and then you realise, ‘oh, I really shouldn’t have done this’,” minister Walrond reasoned.
She said too that once the bill is passed, it will mandate sellers to explain prices and procedures to buyers, whereas sellers would have to specifically declare cash prices for an item, along with the hire-purchase cost of the same item.

This component of the bill, Walrond said, is geared at eliminating financial jargon that often see hire-purchase prices being shrouded in secrecy. “If you don’t disclose [the prices], there will be criminal penalties,” the Commerce Minister said.
She noted, too, that while the bill serves as a protection tool for consumers, it will also bring major benefits to businesses throughout Guyana. The minister pointed to the fact that the advent of a proper framework would also encourage many more persons to make purchases via credit, as it will no longer be a risk.
Senior Minister within the Office of the President with responsibility for Finance Dr. Ashni Singh, remarked that the Hire Purchase Bill is an addition to government’s comprehensive modernisation agenda in all sectors, including commence and finance. “Buying on credit is a staple aspect of life in most modern and advanced societies,” Minister Singh said.

He noted that Guyana has many sellers who resort to conducting cash transactions, since there are often faced with concerns of unpredictability and lack of protection that come from entering hire-purchase arrangements.
“As we become increasingly a more modern society, which is unavoidably going to be a society that is going to be characterised by modern ways of doing business, including doing business on credit and hire purchase, it is important that we have a sound and legal framework that will facilitate those transactions and encourage more people to do such transactions, but in a predictable environment,” Dr. Singh noted.
As Guyana continues its course to advancement, the Finance Minister believes that the potential for buying and selling on credit will inevitably increase dramatically. “Disposable incomes are going to be increasing; people are going to want to acquire these items [vehicles etc] for comfort,” Dr. Singh added.