Section 75 Claim Advice

stuart85dj · 22 March 2018 at 11:16PM

Hi All

I had solar panels installed in 2014 costing about £7k for 4kw system. We should have 10 year insurance backed warranty on whole system with the 25 year performance warranty on the panels. This also included a de and re install of the panels if I needed work done on my roof within a 10 year period.

The company has gone bust and so have the insurance underwriters so I am stuck if I have a fault. My inverter is made by ABB so I have called them to see if they have a record of 10 year warranty on my unit as you can purchase additional cover when new, but it only has the standard 5 year warranty on the unit (runs out may 2019 by its date code) so past this date if it fails it will cost me to fix.

The whole system was paid for on a 0% credit card then paid off before the end of the term and is still an active card. Can I make a section 75 claim even though the system is still working? As I wont receive the 10 year warranty I should have and I also won't receive the de and reinstall of the system if i need roof work done (so not receiving goods or services i have paid for). I have documentation/receipts and emails stating what our system should have and details about the warranty promesis etc as we did have some issues with the company after it was first installed. I'm not fussed about getting it all back but just to cover cost of inverter if it failed for example

I have also started receiving calls about "do I know my system is not covered and will cost x amount to replace inverter etc" so my details must have been sold on somewhere. I believe they stopped trading a few years ago but was unaware about warranty issues until I started receiving these calls.

any suggestions would be appreciated as I dont want to file a claim get it rejected then that stops me claiming later if the system has then fails completely for example

Thanks Stu

[Deleted User] · 22 March 2018 at 11:27PM

Its unusual for underwriters to go bust were they not members of lloyds of london?
I doubt you have a S75 claim if nothing has yet gone wrong, but I'm quite happy to be corrected if wrong.

stuart85dj · 23 March 2018 at 12:22AM

thanks for reply. The insurance underwriters I believe were enterprise insurance from gibraltar as we had received a letter saying they were in administration and we would receive further information. We never did and I had forgotten about it until I started receiving these calls. the company was a HEIS member so next point of call is contact them I am just trying to prevent loss if possible and don't want to spend out on warranties I may not need if i already have protection.

Thanks for quick reply and saving me time going through a process that is not vaild

MEM62 · 23 March 2018 at 11:39AM

So if I understand correctly, your biggest issue is that you now have no warranty. I am wondering what outcome you are looking for in respect of your claim because, as yet, you have no financial loss.

If the CC company arranged for an insurance / indemnity equal to the original guarantee would you be satisfied?

chattychappy · 23 March 2018 at 11:46AM

MEM62 wrote: »

If the CC company arranged for an insurance / indemnity equal to the original guarantee would you be satisfied?

I suppose the OP would be satisified with that.

If the OP could obtain some sort of quote for insurance for the same level of cover, that is something that could be claimed now under S75.

There must be a worry concerning limitation. The limitation is 6 years from breach of contract (not when you incur the loss). The complication here is that the breach has already happened, although the losses have not yet crystallised. If the OP waits for a loss, he could be timed out.

stuart85dj · 23 March 2018 at 10:00PM

Yes my concern is the 6 years as it if fails in year 7 im out of pocket. As the company does not exist already i am already out of pocket due to not having cover currently for faults for example. I would be happy just to have insurance/cover for the 10 year period. I don't expect a full refund nor would I want it as such as its not fair for the credit provider to provide a refund on the whole system but paying for the cover etc would be acceptable.

chattychappy · 24 March 2018 at 1:33PM

I think it's not clear cut, but if you could obtain a quote for some sort of insurance, then I would attempt to claim this from the CC under S75.

It's not clear cut though.

For example, if it's expressed "And for that added comfort, we arrange insurance through XYX Ltd" then they met their obligation by arranging the insurance. If XYZ go bust, well that's tough. S75 covers you for breach of contract with the merchant only.

bris · 24 March 2018 at 5:50PM

S75 will kick in but not before there is a breach, there is no breach at this time as nothing has gone wrong with the system and no warranty claim is needed.

There is no time limit on a S75 claim so if and when a breach occurs the OP would have 6 years from this point. The installation date is irrelevant.

chattychappy · 24 March 2018 at 6:25PM

bris wrote: »

S75 will kick in but not before there is a breach, there is no breach at this time as nothing has gone wrong with the system and no warranty claim is needed.

There is no time limit on a S75 claim so if and when a breach occurs the OP would have 6 years from this point. The installation date is irrelevant.

I potentially disagree. It depends on what was agreed. If the agreement was to provide warranty cover via insurance, that has now been breached, even though no loss has crystalised. The limitation clock has started.

Of course litigation does have ways to deal with this kind of thing - eg you can start a claim and then have it stayed.

derps · 25 March 2018 at 2:59PM

I believe chattychappy is correct - this is down to what the retailer was required to do. Section 75 won't apply if arranging the insurance with a 3rd party was fulfilled at the outset but if they had on ongoing requirement then the OP may be covered and the information available to us isn't enough to say there definitely is so claim here yet.

Section 75 Claim Advice

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