Section 75 Refunds – a reminder!

legal updates

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.

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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!

Octane FinanceFuel Your Finance

Octane Finance is the broker of choice for new and used car dealers nationwide. With our uncompromising service levels and our genuine and professional approach, you and your customers can trust us to deliver.

Howard TilneyHead of Strategy / Legal AdvisorRead More by this author

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