Payments etc. by financiers to dealers, restrictions on
29 Payments etc. by financiers to dealers, restrictions on
If in connection with any goods any person (in this section called the dealer) arranges that some other person (in this section called the financier) shall —
enter into a hire‑purchase agreement in relation to those goods with a hirer; or
accept any assignment of the dealer’s property in the goods comprised in a hire‑purchase agreement, or of the dealer’s rights under a hire‑purchase agreement in respect of those goods; or
advance or pay money to the dealer or to some person on his behalf in respect of a hire‑purchase agreement in relation to those goods,
the dealer shall not seek, accept, demand or receive from the financier and the financier shall not pay, offer, or grant to the dealer, directly or indirectly, any money or other valuable consideration that, together with the money (if any) paid or payable by or on behalf of the hirer to the dealer and the value of any other consideration (if any) furnished or to be furnished by or on behalf of the hirer to the dealer would exceed the cash price of the goods.
Notwithstanding anything in subsection (1) —
where the dealer has entered into a contract guaranteeing the performance of the hire‑purchase agreement by the hirer, a commission not exceeding one‑tenth of the total terms charges payable under the hire‑purchase agreement may be paid by the financier to the dealer; and
where the dealer has agreed with the hirer to maintain or to provide any service for the goods during the currency of the hire‑purchase agreement any amount payable under the agreement in respect of the maintenance or service may be paid by the financier to the dealer.
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