The Covid-19 (Temporary Measures) Bill aims to protect individuals, such as private-hire drivers who are unable to afford monthly instalments on their hire-purchase loans.
The proposed law to be tabled by the Ministry of Law (MinLaw) next week would provide relief of at least six months to individuals and businesses who are financially impacted by the pandemic.
How does this work?
MinLaw said a driver may not be able to afford his monthly instalments for February and March because he has had fewer passengers and a reduced income as a result of the pandemic.
The private-hire driver can seek the ministry’s help and apply for relief from their contractual obligations.
The ministry will then appoint an assessor, who will decide whether to grant the driver a relief order.
Under the proposed law, the finance company providing the loan would not be allowed to repossess the car, or start or continue court or insolvency proceedings against the driver, if he is granted relief.
Based on the facts of the case, the assessor will decide on a “just and equitable outcome” for both parties, said MinLaw.
The assessor may call for the driver to pay one or more instalments during the relief period, depending on the circumstances of the case.