Hire-Purchase Act 1959

Before any hire‑purchase agreement is entered into in respect of any goods the owner or, if there is a dealer, the dealer shall give or cause to be given to the prospective hirer a statement in writing duly completed in accordance with the form in the First Schedule Part 1, but where the agreement is entered into by way of acceptance by the owner of a written offer signed by or on behalf of the hirer, the provisions of this subsection shall be deemed not to have been complied with unless the written statement was given to the prospective hirer before the written offer was so signed and a copy of the written offer was given to the prospective hirer immediately after it was so signed.

A dealer shall not deliver, or cause or permit to be delivered, to a prospective owner any offer by or on behalf of a prospective hirer unless that offer —

is made in writing; and

was signed by the prospective hirer or a person authorised by him and on his behalf, after the dealer had given, or caused to be given, to the prospective hirer or that authorised person a statement in writing duly completed in accordance with the form in the First Schedule Part 1.

It is a defence to a charge arising under subsection (1) or (1a) if the accused proves that he acted honestly and that in all the circumstances the act or omission constituting the offence should be excused.

Every hire‑purchase agreement —

shall be in writing; and

shall be signed by or on behalf of the hirer and all other parties to the agreement; and

shall —

specify a date on which the hiring shall be deemed to have commenced; and

specify the number of instalments to be paid under the agreement by the hirer; and

specify the amounts of each of those instalments and the person to whom and the place at which the payments of those instalments are to be made; and

specify the time for the payment of each instalment; and

contain a description of the goods sufficient to identify them;

where any part of the consideration is or is to be provided otherwise than in cash, shall contain a description of that part of the consideration; and

shall set out in tabular form —

the price at which at the time of signing the agreement the hirer might have purchased the goods for cash (in this Act called and in the agreement to be described as cash price); and

the amount paid or provided by way of deposit (in this Act called and in the agreement to be described as deposit) showing separately the amount paid in money and the amount provided by a consideration other than money; and

any amount included in the total amount payable for maintenance of the goods (in this Act called and in the agreement to be described as maintenance); and

any amount included in the total amount payable to cover the expenses of delivering the goods or any of them to or to the order of the hirer (in the agreement to be described as freight); and

any amount included in the total amount payable to cover vehicle registration fees (in the agreement to be called vehicle registration fees); and

any amount included in the total amount payable for insurance other than third party insurance (in this Act called and in the agreement to be described as insurance); and

the total of the amounts referred to in subparagraphs (i), (iii), (iv), (v) and (vi) less the deposit (in this Act called and in the agreement to be described as amount financed); and

the total of any other charges included in the total amount payable (in this Act called and in the agreement to be described as terms charges) and also the percentage rate of the terms charges calculated in accordance with the formula provided in the Fifth Schedule; and

the total of the amounts referred to in subparagraphs (viii) and (ix) (in this Act called the balance originally payable under the agreement); and

the total amount payable;

shall contain, immediately above the space for the signature of the hirer, a clause which shall be printed as prominently as or more prominently than the terms and conditions of the agreement and which shall read as follows —

An owner who enters into a hire‑purchase agreement that does not comply with subsection (2) commits an offence against this Act.

Without affecting the liability of any person to be convicted of an offence against this section, but subject to subsection (4a), where a provision of this section is not complied with in relation to a hire‑purchase agreement (not being a failure to comply with subsection (2)(a)), the liability of the hirer thereunder is, by force of this subsection, reduced by the amount included in the hire‑purchase agreement for terms charges and that amount may be set off by the hirer against the amount that would otherwise be due or become due to the owner under the agreement.

Where a hirer alleges that the provisions of subsection (4) apply, but the owner alleges that he acted honestly and that in all the circumstances the act or omission constituting a failure to comply with a provision of this section ought to be excused and that the provisions of subsection (4) ought not to apply to or in relation to the hire‑purchase agreement, the owner, by an application in writing to the Commissioner, a copy whereof is served on the hirer and every guarantor, may claim relief against the consequences of that act or omission.

On an application to the Commissioner under subsection (4a), the Commissioner, after considering any submissions made by or on behalf of —

the owner; and

guarantors; and

the hirer,

In granting relief in respect of an application made under subsection (4a) the Commissioner shall have regard to the extent to which the hirer was, or was not, prejudiced by the act or omission relied on by the hirer as constituting a failure to comply with a provision of this section.

A grant or refusal of relief by the Commissioner in respect of an application made under subsection (4a) shall be by instrument in writing signed by him and served on the hirer, the owner, and every guarantor.

Subject to any order of the State Administrative Tribunal on an application under subsection (4g), a decision of the Commissioner in respect of an application made under subsection (4a) has effect according to its terms and, where relief is granted thereby, the operation of subsection (4), the hire‑purchase agreement and any contract of guarantee relating to it are by virtue of this subsection varied to the extent necessary and as so varied are binding on the parties thereto.

An owner, hirer, or guarantor, who is a party to a hire‑purchase agreement, or a contract of guarantee relating to it, in respect of which a decision has been given by the Commissioner in respect of an application made under subsection (4a) and who is aggrieved thereby, may apply to the State Administrative Tribunal for a review of the decision.

A hire‑purchase agreement that is not in writing is not enforceable by the owner.

Where the goods comprised in a hire‑purchase agreement are all items of furniture, whether free standing or in‑built, as specified in the First Schedule Part 2 and the total cash price of the goods is unknown because of some substantial alteration or addition to be made to or of some substantial work to be done in respect of all or any of the goods before delivery thereof to the hirer, it is a sufficient compliance with the requirements of subsection (1) if the statement therein referred to sets out approximate amounts in lieu of specific amounts and it is a sufficient compliance with the requirements of subsection (2)(c)(iii) and (e) in regard to amounts and cash price if the agreement sets out approximate amounts and cash price in lieu of specific amounts and cash price.

In each case referred to in subsection (6) —

the amounts and price stated are clearly stated to be approximate only; and

prior to the stamping of the agreement the true amounts and price are inserted therein and a further or amended statement in writing is duly completed in accordance with the form in the First Schedule and is given to the hirer.

For the purposes of subsection (6) an amount or a cash price is approximate if it is within 10% of the true amount or price or within $20 thereof.