New Hire Purchase Order Fair To All
By Ignatius Stephen

Bandar Seri Begawan - Brunei has enacted for the first time laws covering hire purchase of cars and consumer goods under a regulation called the Hire Purchase Order 2006.

The Order aims to be fair to all parties, the owner, hirer and the guarantor.

The act explains consumer goods as items bought for personal, family or household use and not for any trade or businesses.

Cars come under "motor vehicles" within the meaning of the Road Traffic Act, the 40-page Order dated March 16 explains. Although the hire purchase sector had been a very vibrant industry in Brunei, there had been no statuary laws governing it.

Those in the motor industry, particularly the banks and finance companies made their own rules largely based on conditions prevailing in the neighbouring countries.

In some instances, hirers and guarantors were not sufficiently protected and rules and regulations favoured the owners, it was alleged. Under the new laws protection for hirers and guarantors are spelt out.

Penalties for owners for misrepresentation are laid out, which could be a heavy fine or imprisonment or both. Rules on repossession are also mentioned which are designed to be fair to all parties.

The Order passed under the Constitution of Brunei Darussalam sanctioned by His Majesty on March 4 lays down various schedules under which to conduct the business.

One important clause says that the hirer may terminate the hiring by returning the goods to the owner. If an agreement cannot be reached the hirer may apply for a court order.  -- Courtesy of Borneo Bulletin

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