Distance Selling Regulation combined with Credit

LozzaJones

Hi All

I wish to buy an expensive item from a reputable online shop using their interest free credit option which allows payment over a period of 10 months.

The item is a guitar, so there is always a fair chance it may not be perfect and I would wish to return it under the DSR.

Of course, if I purchased this in a single payment, I know I could ask to return the item within 7 working days, but since I will also be taking credit to cover the purchase (which I assume would be through a 3rd part credit company), I would be grateful if someone could explain the difference in rights or procedure here?

Many thanks
Lozza!

shaun_from_Africa

This should help.
http://www.oft.gov.uk/shared_oft/business_leaflets/general/oft698.pdf

What happens on cancellation to related credit agreements
that a consumer has used to finance a purchase?

3.53 If a consumer has entered into a related credit agreement specifically
to finance the purchase of the goods or services and if the loan is
from you or from a lender with whom you have arrangements, then
that loan agreement is automatically cancelled when the consumer
cancels the order. Any money paid to you by the consumer or by the
lender on the consumer’s behalf in relation to the agreement with you
will need to be refunded to the person who made the payment.

LozzaJones

Thats great, many thanks.

Esqui

I also believe legislation from February this year gave consumers a right to cancel a credit agreement within 14 days without penalty and for any reason. If I am wrong, someone will be along in a moment to put me right.

arcon5

Esqui wrote: »

I also believe legislation from February this year gave consumers a right to cancel a credit agreement within 14 days without penalty and for any reason. If I am wrong, someone will be along in a moment to put me right.

You're correct.

Consumer Credit Act 1974 gives you the option to cancel within 14 days

http://www.adviceguide.org.uk/d_credit_fact_sheet.pdf

LozzaJones

Thank you all very much! I can have confidence in my purchase now

arcon5

Just a thought here..

but the 14 day cooling off starts from the point you agree to the credit agreement.... so if the item was delivered on the 15th day, i'm wondering how this would affect your rights under DSR................................

LozzaJones

Upon closer inspection, I see a strange item in the terms at this shop which is Rockem Music! The terms mentioned on their credit information page are as follows:

By Mail Order
The process is very similar, simply 'phone us, and we will post the forms to you. Once completed you should return the forms to us. When we receive the forms back there is a 14 day wait before we are able to send out the goods.

This seems like they are holding on to the goods until the cooling off period for credit has expired! Kinda puts me off them to be honest!

mo786uk

When you buy goods in store on credit you have 14 days in which to cancel the credit.

Therefore you would still have to pay for the item but you could cancel the credit. The idea is that you stil lbuy the item but you can source credit from elsewhere.

---

If you buy online at a distance with no face to face contact then you get 7 days in which to cancel from when you RECIEVE the product.

If you decide to cancel under the distance selling regulations then the credit agreement is automatically cancelled.

Therefore if they send the goods out 14 days after you have signed the credit agreement I am not sure what that achiebes - because you oculd still cancel the goods when they arrive (i.e after 1 4days) and then cancel the credit agreement with it under the distance selling regs.

mo786uk

BTW I would confirm it with the shop first to see what their view is.

mo786uk

Another one from me - I can see why they have done it like that - it is to stop people ordering a guitar - then cancelling the credit.

that would mean the customer has the guitar and has cancelled the credit

if they wait 14 days the customer cannot retain the guitar AND cancel the credit (menaing the shop wont lose out).