Hire Purchase Amendment Bill passed to improve access to justice

The National Assembly on Monday passed the Hire Purchase (Amendment) Bill 2026, which aims to clarify the legal framework governing disputes arising under the Hire Purchase Act while improving access to justice for consumers and businesses.

During the bill’s second reading, Minister of Tourism, Industry and Commerce Susan Rodrigues said the amendment removes “ambiguity in Section 32 of the principal Act by expressly providing that claims or other proceedings under the Hire Purchase Act may be filed in either the High Court or a Magistrate’s Court, regardless of the monetary value of the claim.”

She explained that the amendment addresses uncertainty over the applicability of monetary limits under summary jurisdiction legislation, which has the potential to create unnecessary procedural obstacles, delays and inconsistencies in the administration of justice.

“This amendment therefore provides much-needed clarity and certainty,” Minister Rodrigues said.

The minister said the amendment adopts a “sensible and people-centred approach” by allowing proceedings to be heard in courts that are practical and convenient for the parties involved, including locations where they live or conduct business.

“For many citizens and small businesses, access to justice is not only about legal rights but also about practicality, affordability and proximity. Allowing matters to be heard in courts closer to the parties involved reduces unnecessary hardship, lowers costs and promotes more efficient resolution of disputes,” she said.

The amendment also supports the efficient administration of matters involving hire purchase, conditional sale and credit sale agreements by eliminating procedural uncertainty and strengthening the legal framework governing these transactions.

The amendment builds on the Hire Purchase Act 2022, which introduced stronger protections for consumers purchasing goods on credit. Among its reforms, the act requires notice before repossession and, in certain circumstances, court approval before goods can be repossessed, replacing previous provisions that allowed owners to repossess goods after default while retaining payments already made.

With the passage of the amendment, litigants will have greater certainty and flexibility in choosing whether matters are heard in the High Court or the Magistrate’s Court, helping to make the justice system more accessible and efficient. [DPI]