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Review Hire Purchase Law to cover “work and pay”

The Member of Parliament for the Manhyia North Constituency, Hon Collins Owusu Amankwah, has appealed to parliament as a matter of equity and fairness, to review the existing law on hire purchase (Hire Purchase Act, 1974 NRCD 292) to include work and pay business.

Work and pay arrangement is a commercial agreement between a car owner and a driver in which the driver makes regular predetermined weekly sales to the owner over a period of usually two to three years, after which ownership of the car is transferred to the driver.

Making a statement before parliament Thursday on the plight of work and pay drivers, Hon Amankwah noted that these transactions are mostly not enforceable in court, and therefore suggested that, “There ought to be an established body or authority to regulate such relationship in terms of hire purchase agreement.”

According to him, the private sector is a necessary ingredient to economic growth and therefore the need to regulate and institutionalize work and pay businesses to provide employment and generate revenue.

He pointed out that the plight of drivers that are involved in the work and pay business is worrying and needs to be considered.

“These drivers are expected to make specific daily or weekly sales to their owners and also required to do maintenance and servicing of the car on their own.

Additionally, the drivers cater for all taxes relating to the operations of the vehicle.

Much more distressingly, these drivers pay between 48 to50% interest rates per anum on the cost of the vehicle for this type of business. The drivers are compelled to work beyond their abilities to make more sales in order to be able to pay the cost of the car.

Where a driver is unable to make sales for three weeks he loses the initial monies paid,” he pointed out.

To him, “The circumstances of the arrangement which is shylock-like and which is milking the drivers obliged me to appeal to the Ghana Bar Association to extend pro bon legal counsel in assisting these taxi drivers in the work and pay business”.

Story by: Gilbert Borketey Boyefio

About Gilbert Boyefio

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