Author: Howard Tilney
Published: September 16, 2014
Reading time: 1 minute
This article is 7 years old.
Read our disclaimer keyboard_arrow_down
This website content is intended as a general guide to law as it applies to the motor trade. Lawgistics has taken every effort to ensure that the contents are as accurate and up to date as at the date of first publication.
The laws and opinions expressed within this website may be varied as the law develops. As such we cannot accept liability for or the consequence of, any change of law, or official guidelines since publication or any misuse of the information provided.
The opinions in this website are based upon the experience of the authors and it must be recognised that only the courts and recognised tribunals can interpret the law with authority.
Examples given within the website are based on the experience of the authors and centre upon issues that commonly give rise to disputes. Each situation in practice will be different and may comprise several points commented upon.
If you have any doubt about the correct legal position you should seek further legal advice from Lawgistics or a suitably qualified solicitor. We cannot accept liability for your failure to take professional advice where it should reasonably be sought by a prudent person.
All characters are fictitious and should not be taken as referring to any person living or dead.
Use of this website shall be considered acceptance of the terms of the disclaimer presented above.
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!