Rules to regulate instalment payments proposed

NEW rules that would govern payment of instalments for services, products and electronic appliances are set for debate in the Shura Council.

Shura’s general secretariat office, headed by chairman Ali Saleh Al Saleh, yesterday accepted a proposed legislation presented by five members led by Bassem Albinmohammed.

It will be now reviewed in an upcoming session.

The legislation follows claims that traders are unfairly capitalising on people’s needs and inability to pay cash down, by charging inflated prices through instalment plans.

The new rules will also seek to ensure that the customers pay the seller regularly, without delays or disruptions.

The office was briefed about the legislation, which was adjusted in line with the 2006 Central Bank of Bahrain and Financial Institutions Law, by financial and economic affairs committee chairman Khalid Al Maskati.

Payment

“Greed is driven by people’s need for services, products and devices and unfortunately providers take payment by instalments as a way to profit hugely,” Mr Albinmohammed told the GDN.

“For example, a device that costs BD500 is being sold for BD700 on instalments, which is a mark-up of 40 per cent, and this increase is unacceptable,” he added.

“Agreed, new offers, models and versions come out on a regular basis and that payment by instalments takes longer to collect in comparison with cash-down payments but that is no excuse to take advantage of customers.”

Mr Albinmohammed said people tended to buy things on instalment because most of their income goes in paying bank loans, credit cards and other expenses and they have no hope of getting more financing.

He said there should be an acceptable interest rate charged for payment by instalments.

Meanwhile, secretary general Osama Al Asfoor presented a proposal for new rules for order within council sessions and committee meetings.

It would govern entry and presence of media personnel, videographers and photographers, administrators and technicians.

Source: https://www.gdnonline.com/Details/937081/Rules-to-regulate-instalment-payments-proposed