Consumer Credit Act 1995

F94[Owner to have right to sell goods etc.

73B

73B.(1) Subject to subsection (2), the requirements referred to in section 73A(2) are that the owner shall ensure that—

(a) at the time when the ownership of the goods is to be transferred under the hire-purchase agreement, the owner has the right to sell the goods,

(b) at the time when the ownership of goods is to be transferred under the hire-purchase agreement, the goods are free from any charge or other encumbrance (other than a charge or other encumbrance which was disclosed to the hirer before the hirer entered into the hire-purchase agreement), and

(c) the hirer shall enjoy quiet possession of the goods except so far as it may be disturbed by the owner or any other person entitled to the benefit of any charge or encumbrance so disclosed.

(2) Where the hire-purchase agreement shows, or the circumstances at the time the agreement was concluded imply, that the owner and the hirer intend that the owner transfer only the limited title to the goods that the owner or a third person may have—

(a) all charges and encumbrances known to the owner shall be disclosed to the hirer before the hirer enters into the agreement, and

(b) the hirer’s quiet possession of the goods shall not be disturbed by—

(i) the owner,

(ii) the third person, or

(iii) a person claiming through or under the owner or the third person unless that person is claiming under a charge or encumbrance that was disclosed to the hirer before the agreement was concluded.

(3) Where the owner does not have the right to sell goods as required by subsection (1)(a), the hirer shall have the right to terminate the hire‑purchase agreement.

(4) Where the hirer has the right to terminate the hire-purchase agreement under subsection (3) and wishes to exercise that right—

(a) the hirer shall exercise that right in accordance with section 73N, and

(b) the owner shall comply with the obligations in section 73O.

(5) The hirer shall have the right to the remedies specified in sections 73I and 73L where—

(a) the goods are not in compliance with subsection (1)(b) and (c),

(b) the owner does not disclose all known charges or encumbrances in accordance with subsection (2)(a),

(c) the hirer’s possession of the goods does not comply with subsection (2)(b), or

(d) a restriction resulting from a violation of any right of a third party, in particular an intellectual property right, prevents or limits the use of the goods in accordance with sections 73C and 73D.

(6) In case of dispute, it shall be for the owner to show that—

(a) the owner had the right to sell the goods in accordance with subsection (1)(a),

(b) the goods complied with the requirements of subsection (1)(b) and (c),

(c) the owner disclosed all known charges and encumbrances in accordance with subsection (2)(a), and

(d) the hirer’s possession of the goods complied with subsection (2)(b).]

Annotations:

Amendments:

F94

Inserted (29.11.2022) by Consumer Rights Act 2022 (37/2022), s. 150(1), S.I. No. 596 of 2022, subject to transitional provision in subs. (2).