Section 11: Right to recover possession and claim payment

11. Right to recover possession and claim payment (1) Where goods have been let under a hire purchase agreement and one half of the hire purchase price has been paid, whether in pursuance of a judgment or otherwise, or tendered by or on behalf of the hirer or any guarantor, the dealer shall not enforce any right to recover possession of the goods or to claim payment of an instalment from the hirer otherwise than by action. (2) Where an dealer recovers possession of goods in contravention of subsection (1), the hire purchase agreement, if not previously determined, shall determine, and— (a) the hirer shall be released from all liability under the agreement and shall be entitled to recover from the dealer by action all sums paid by the hirer under the agreement or under any security given by him in respect of it; and (b) any guarantor shall be entitled to recover from the dealer by action all sums paid by him under the contract of guarantee or under any security given by him in respect of it. (3) This section shall not apply where the hirer has determined the agreement or the bailment by virtue of any right vested in him. (4) Notwithstanding subsection (1), a dealer shall not enter any action in respect of any instalment which is overdue unless he first claims payment of the instalment by notice in writing by registered post to the hirer. [S. 11 amended by Act 1 of 1995; Act 26 of 2000.]