Section 75 Refunds – a reminder!

Any dealer who accepts payment by credit card should be aware of Section 75 of the Consumer Credit Act 1974.

In a nutshell if a customer pays something between £100 to £30,000 on credit, then the credit provider is equally liable should something go wrong i.e. the car is defective.

The customer has the option of seeking a full refund of the purchase price from either the dealer or the credit provider in the event of a breach of contract, which entitles the customer to reject the car.

So even if the customer pays a deposit of just £100 on a credit card against a £15,000 car, then he will be able to seek a refund of the whole purchase price from the credit provider if the dealer fails or refuses to provide a refund against a legitimate claim.

Here’s the rub - the card provider will then recoup its outlay from the dealer plus expenses!

Authors: Howard Tilney

Published: 16 Sep 2014


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