DIFFICULTIES WITH COACHES ON HIRE-PURCHASE
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ALTHOUGH I have been a regular reader of your paper for many years, this is the first time I have had to ask your advice. It is in connection with the hire-purchase of several coaches which I run.
In addition to what I do personally, I have given work to local and outside coach operators. The war has, however, upset my arrangements and I have been unable to collect money from certain concerns because they are in the same difficulty. The result is that I am not able to pay the full instalments on my vehicles. The hire-purchase company is pressing for payment in full up to September 1 and asking my intentions as to the remainder of the instalments, stating that if I fail to meet them they may have to repossess the vehicles.
Therefore I shall be glad if you will answer the following questions: (1) Can the hire-purchase company repossess its vehicles in the present circumstances? (2) Is there anything I can do to prevent it taking repossession? (3) If I offered small payments for the duration of the war could I retain possession? (4) If I offered to pay interest on the amount of coach hire, etc., outstanding, could it refuse to accept? (5) What do you advise me to do? COACH OPERATOR. Wigan.
[The following are the answers to your queries:—(l) Yes; (2) no; (3) only so long as the instalments are regularly and punctually paid; (4) yes; (5) it might be advisable t'o allow the hire-purchase company to repossess these vehicles. It would be entitled to sue if the instalmentg are in arrears, but you would be protected from further proceedings under the Courts Emergency Powers Act. Under this Act, a judgment obtained, whether before or after September 2, cannot be enforced without leave of the appropriate Court, and a finance company under a hire-purchase agreement cannot repossess its property without similar leave. Where the Court concludes that the person liable is unable to fulfil his obligations by reason of circumstances directly or indirectly attributable to war, it may refuse leave or allow it, subject to conditions it considers proper.
It might be possible for you to sell the vehicles, but for this you have to obtainthe consent of the finance company concerned.—En.]