This article describes our general approach to concerns about financial businesses’ purchases of goods and services on credit. If you’re looking for information in this area, specifically about the potential impact of Covid-19 and how we should handle complaints, you can read more in our consumer information here, and financial businesses can read more in our financial business information here.
Things can go wrong when a consumer buys products or services from a supplier. This may include the following:
- the consumer not having what they expected, or the item being defective
- the item never arrived, and the service they ordered was not up to scratch.
If the consumer paid with a credit card you issued, you could be held responsible for any issues with the products or services. If this is the case, you might be forced to give the customer a repair, replacement, or refund.
When consumers come to us, it’s usually because they’re upset with how an organization treated their situation after they’ve told you about an issue with products or services. We’ve got the following reviews from customers:
- I’m not pleased with the details given to me about the products or services before I decided to purchase them.
- The products I purchased were either of low quality, unfit for a specific reason, or never arrived.
- The service I purchased was not delivered with fair care and ability, and I am disappointed with how the supplier attempted to rectify the situation.
What we are looking for
We’ll look at the duties under existing laws like the Consumer Credit Act of 1974 and the Consumer Rights Act of 2015.
If you provide goods to consumers under a rent-to-own arrangement, such as a hire-purchase agreement, you’re likely to be responsible for (depending on the form of agreement):
- things said about the goods before the sale by a third party, such as a dealer or broker, that turn out to be incorrect issues arising from the supply of those goods
- If you give a customer a credit card or a point-of-sale loan that they use to purchase products or services from a third party, Section 75 of the Act can apply to the transaction.
Customers may make a lawsuit against you under Section 75 for actions taken by a third-party supplier. If you’re looking for a new way to express yourself, this is the place to be.
The products or services cost more than £100 but not more than £30,000 in cash.
The customer claims the supplier misrepresented its products or services, or that the supplier violated their contract.
It’s important to remember that:
In such cases where the cash price is above £30,000, the buyer would not have to pay the full cash price of the product on credit to have a legitimate Section 75 argument. A credit issuer may also be liable for what happened; under Section 75A, a card provider or bank may be entitled to assist with a dispute over products or services via the chargeback process, regardless of whether or not a lawsuit under Section 75 has been filed.
We’ll look at the following main evidence:
- The cost of the goods or service that was included in the transaction was used to assess the form of credit that was used.
If we can help, we’ll weigh the facts, which includes:
Examining the contract with the supplier, taking into account facts such as documents, photographs, recordings, emails, and (if needed) reports or expert opinion, and what applicable legislation (such as the Consumer Rights Act 2015) and industry guidelines says about the supply of products or services
The Consumer Rights Act of 2015 was passed in 2015.
Public concerns regarding the quality of products or services (including digital content) offered by a company are protected by the Consumer Rights Act. And if the supplier’s documentation does not contain (or expressly seeks to exclude) those contractual rights, it implies them into customer contracts.
It went into effect on October 1, 2015, and it incorporates crucial consumer protections from different pieces of legislation, such as:
The Selling of Goods Act of 1972 is a statute that regulates the sale of goods.
1977’s Unequal Contract Terms Act
The Supply of Goods and Services Act of 1982 is a statute that regulates the supply of goods and services.
It clarifies a supplier’s obligations and outlines the rights to which a customer is entitled.
Since the Act is not retroactive, existing law will apply if the customer entered into a contract before October 1, 2015.
The Consumer Rights Act’s key points are:
Goods must be of satisfactory quality, fit for their intended purpose, and as defined services must be conducted with fair care and skill, in a reasonable time frame, and at a reasonable rate, unless otherwise agreed.
The Act further defines a consumer’s rights in the event of a contract breach, which include:
For issues with products, the customer has the right to a repair, replacement, refusal, or partial refund.
the right of the user to have programs attempted again or to obtain a partial refund for those that have already occurred
Other pieces of legislation
The Consumer Rights Act does not protect all contracts for goods and services, such as business-to-business contracts. Other pieces of legislation that may be applicable are:
The Consumer Contracts (Information, Termination, and Additional Charges) Regulations 2013, the Selling of Goods Act 1979, the Supply of Goods and Services Act 1982, and the Consumer Contracts (Information, Cancellation, and Additional Charges) Regulations 2013
We may ask you to: Based on what went wrong (and what you’ve done to try to correct it), we may ask you to:
offer the customer a refund, in part or in full, fix or substitute the goods, and arrange for the services to be conducted properly. refund interest, costs, or repayments
The items will be collected at no cost to the consumer.
We can also recommend that you pay compensation for any pain or discomfort incurred in any of these cases. If the consumer has incurred any costs as a result of the faulty goods or services, we’ll decide if it’s fair to refund these costs.