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.
One of the largest independent specialist motor trade brokers in the UK. Our extensive history of supplying insurance to the motor trade means we understand your business needs. By partnering with a specialist insurance broker like us, you get exactly what you need to protect your business.
