Guyanese citizens have been left blindsided and betrayed, according local advocate Mr. Dorwain A. Bess, who in a scathing missive addressed to Attorney General and Minister of Legal Affairs, Mohabir Anil Nandlall S.C., Head of State, President Dr. Mohamed Irfaan Ali, and various foreign diplomats, Guyanese advocate Mr. Dorwain A. Bess has levelled serious accusations against BM Soat Auto Sales and its proprietor Rameez Mohamed, alleging, among other serious concerns, including ‘deceptive’ practices under the guise of “hire purchase” agreements.
Bess contends that these agreements exploit Guyanese citizens, disregarding the protections afforded by the Hire Purchase Act of 2022.The Hire Purchase Act, which came into effect on 12 December 2022, was introduced with the intent of “bringing greater balance and fairness in the relationship between the hirer and owner,” according to statements from the Attorney General’s Chambers.
However, Bess argues that BM Soat’s practices represent a stark violation of these intended protections.Citing the accounts of “hundreds of Guyanese” who approached him with complaints, Bess claimed that BM Soat’s agreements misled customers into believing they were acquiring ownership of their vehicles. “Without exception, the citizens communicating with me stated they believed they were entering into an agreement with BM Soat Auto Sales that would ultimately result in their sole ownership of their vehicle when the agreement ended because the agreement is titled: ‘Hire Purchase Agreement,’” he said.Bess, has since, in collaboration with legal professionals from both Guyana and the United States, scrutinised the dealership’s “Hire Purchase Agreement” and asserts that it does not comply with the statutory definition set by the Act.
Instead, Bess states that the dealership’s agreement is “only a hire agreement” that requires customers to pay an additional cash price if they wish to exercise an option to purchase the vehicle. According to him, “No part of BM Soat Auto Sales’ ‘Hire Purchase Agreement’ contains any provision for a Hire Purchase as that term is defined by the Hire Purchase Act of 2022.”
The advocate further highlighted the detrimental financial effects faced by customers under this agreement. Many citizens, believing they were making down payments and instalments towards vehicle ownership, found themselves instead renting vehicles with no ownership rights.Once the term of the agreement ended, BM Soat allegedly repossesses the vehicles, leaving customers in shock.
“Imagine their dismay when they are told they never owned the vehicle they thought they had paid for, and that all of their payments were only rental payments to cover the hire of the vehicle,” Bess remarked.
Additionally, Bess cited issues involving maintenance costs and insurance coverage, wherein customers bear responsibility for all costs despite holding no ownership. As he explained, “As the owner of the vehicle, BM Soat Auto Sales claims the right to take possession of the vehicle at any time for repair and maintenance…BM Soat charges the customer for the cost regardless of whether the customer agrees to the repair/maintenance charge.”
This alleged exploitation, Bess points out, raises alarming questions about the enforceability or abuse of the Hire Purchase Act in Guyana.Bess has since also called on Attorney General Nandlall S.C., to publicly render a formal opinion on whether such agreements fall under the Act’s jurisdiction, specifically questioning: “DOES THE EXISTENCE OF THE WORDS ‘HIRE PURCHASE AGREEMENT’ AT THE TOP OF THE FIRST PAGE OF THE AGREEMENT FOR THE HIRE OF A VEHICLE MAKE THE AGREEMENT SUBJECT TO THE MANDATES OF THE HIRE PURCHASE ACT OF 2022?”
According to Bess, if the answer is affirmative, the government must act to provide citizens with the protections outlined in the Act. Conversely, if the answer is negative, he proposes that the misrepresentation could potentially constitute fraud, and as such the relevant authorities take immediate action for the numerous consumers that would have been duped.
In his now public missive, Bess calls for immediate government intervention to uphold the Act’s intent and protect Guyanese consumers from “unbalanced and unfair business practices.”
The missive has since also been shared with the United States Ambassador and High Commissioners from the United Kingdom, Canada, and the European Union in an effort to highlight international concerns regarding consumer rights violations in Guyana.
