Consumer Rights Act 2015 - Rejects and refunds

We have had some queries recently on how quickly a refund will have to be given if a consumer rejects the vehicle within the first 30 days of ownership when the new Consumer Rights Act comes into force.

The legislation says that a refund should be given “without undue delay, and in any event within 14 days beginning with the day on which the trader agrees that the consumer is entitled to a refund.”

This, at first sight, looks like you would have to give a refund within 14 days of the customer exercising their right to reject. This could obviously be very problematic if the logbook has not been returned from the DVLA yet! As we all know this can take weeks and you may find yourself having to give a refund without the logbook having been returned from the DVLA which would obviously not be sensible at all.

We are therefore suggesting that you advise consumers, either in your terms and conditions or on your sales invoice that you do not agree that they are entitled to  a refund until they have possession of the logbook back from the DVLA. This way you will not have to give a refund until 14 days from the date the logbook is returned. This will hopefully ease the pressures of having to give refunds very quickly if a consumer is entitled to one but also avoid the situation where you have to give a refund for a vehicle without a logbook!

The above advice also applies to giving a refund after the first 30 days, however, we imagine this would only apply if there are real delays with the DVLA service.

We would advise that this, and all of our suggestions, are in place before the 1st October 2015 to comply with the new legislation which comes into force from that date.

 

Authors: Stephanie Ball

Published: 15 Sep 2015

Comments

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Stephanie Ball - Lawgistics Ltd (05/11/2015)
Thank you for your question. If you are a member then please contact us to discuss this is in detail. It could have implications for your business so it would be best to obtain specific advice for your question.
Negative Equity Deals (05/11/2015)
If a customer has negative equity on their part exchange which is rolled into a finance agreement, the negative equity would be put on the vehicle price, to allow us to over inflate the part exchange price to cancel out any negative equity, e.g £2500 put on the vehicle price to over allow £2500 more on the part exchange to cover negative equity. Under the new rights, if a customer rejected the vehicle and has reasonable grounds to do so, how would we get around the negative equity we have put in the vehicle price? Would we be expected to refund the whole amount? If so, how do we get around it?
Stephanie Ball - Lawgistics Ltd (18/09/2015)
Hi Mark, Thank you for your comment on the website. Consumers will only be able to reject vehicles if they are not fit for purpose, not of satisfactory quality or not as described- Not just any small reason. Regarding deductions for usage this should be flexible and dealt with on a case by case basis. As a member you can phone us for advice should this arise and we can give you tailored advice for that particular case. If you have any other questions please do let us know.
acar2go (17/09/2015)
Obviously this Law can be totally abused, what is there to stop a customer that has a total understanding of this legislation in becoming a Serial car buyer, giving cars back for the smallest reason 10, 11 or 12 times a year thereby gaining totally FREE use of transportation compliments of us poor mugs in the Motor Trade? I am a paid up member of Lawgistics legal service and a strong advocate of theirs as they have saved me a fortune over the years and certainly more than their fee, but I would like some Legal advice on what is a reasonable daily amount we can stop from the refund for use of our vehicle? Surely it should be based on how much they would have to pay to hire a car. There has to be a benchmark and as our legal advisors I think that it should be you that researches and defines this for all of us. Please respond. Thank You. Mark Duncan. Director. acar2go Limited
michael (17/09/2015)
stuped law on second hand car goverment bought this law because they dont want to have a lot off case in court .what break down



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