Section 75/loans/mobile contacts

AceGambit

I know section 75 applies to consumer credit but is this the case with mobile phone 0% interest loans?
Here's the back story: my wife bought an iPhone from O2. They split the bill into 2 direct debits, one for the contract and one for the iPhone (@ 0%). The phone has been returnred multiple times to Apple who have replaced it FOC. Recently all the sound in has gone so you can't talk unles on speaker (headphone don't work either). She tried to take it back to Apple but because it's out of warranty (less than a year old but the phone was replaced in warranty and they only give an additional 3 months, ie the last replacement was 4 month ago and the original was 14 months) they won't replace it. However we have a credit agreement for the phone (24 mth contract)
So is this covered by section 75?
How should we proceed?

SnowTiger

AceGambit wrote: »

I know section 75 applies to consumer credit but is this the case with mobile phone 0% interest loans?
Here's the back story: my wife bought an iPhone from O2. They split the bill into 2 direct debits, one for the contract and one for the iPhone (@ 0%). The phone has been returnred multiple times to Apple who have replaced it FOC. Recently all the sound in has gone so you can't talk unles on speaker (headphone don't work either). She tried to take it back to Apple but because it's out of warranty (less than a year old but the phone was replaced in warranty and they only give an additional 3 months, ie the last replacement was 4 month ago and the original was 14 months) they won't replace it. However we have a credit agreement for the phone (24 mth contract)
So is this covered by section 75?
How should we proceed?

I doubt this is covered by Section 75 because O2 is the supplier and lender. MSE says:

But there's other purchases that escape the safety net too...

Where the credit provider & supplier are the same - eg, catalogue accounts

Section 75 relies on there being a three-party relationship between the consumer, the lender and the supplier. So if the supplier and the lender are the same, you can't use Section 75.

In practical terms, what are you intending to do? Take the matter up with O2 the credit provider instead of O2 the supplier?

If I understand this, your wife has now had the phone for eighteen months. O2 (supplier or lender) would probably want an independent report confirming the phone is suffering from an inherent fault before settling a claim.

eddddy

To make a section 75 claim, you must show breach of contract or misrepresentation.

However, the Sale of Goods Act adds implied terms to the contract that goods must be:

- as described
- of satisfactory quality
- fit for purpose

You could try arguing with O2 (or the credit provider) that a phone sold on a two year contract is not fit for purpose, if it stops working after 18 months.

But they may say its broken due to misuse.

(But you can't use the above argument with Apple, because you didn't buy the phone from Apple, and so you have no contract with them.)

AceGambit

We went to the Genius Bar and apple gave my wife a report stating "have referred customer back to O2 who was the original point of sale. With regards to customer law as there are no signs of misuse or damage of the device and the issues have been reported with in 2 years of the original purchase date and customer is still in a contract with the carrier."
TBH the device is only 4 months old, so should not be breaking down.

PeacefulWaters

AceGambit wrote: »

TBH the device is only 4 months old, so should not be breaking down.

Unless it's been refurbished.

Small claim court time, perhaps.

AceGambit

The device hasn't been refurbished, Apple always give you a new device.
If section 75 doesn't apply where O2 are the lender and the retailer. Can I pay off the loan with a credit card then apply section 75

TadleyBaggie

AceGambit wrote: »

The device hasn't been refurbished, Apple always give you a new device.

That's not true, it's very common to get a refurbished device when a replacement is done.

AceGambit wrote: »

If section 75 doesn't apply where O2 are the lender and the retailer. Can I pay off the loan with a credit card then apply section 75

Nope.

chanz4

Also issue you have is the phone is not the one o2 supplied now

eddddy

AceGambit wrote: »

We went to the Genius Bar and apple gave my wife a report stating "have referred customer back to O2 who was the original point of sale. With regards to customer law as there are no signs of misuse or damage of the device and the issues have been reported with in 2 years of the original purchase date and customer is still in a contract with the carrier."
TBH the device is only 4 months old, so should not be breaking down.

I'd say the bit about the replacement device being 4 months old isn't really relevant.

Go to O2 and say:
- You bought a phone on a 2 year contract
- It has stopped working after 18 months
- Apple confirm in writing that it is not due to misuse or damage
- So by definition, it was not "fit for purpose" (i.e. the phone was not fit for a 2 year contract.)

At best, I suspect O2 would only offer a partial refund - for example, they may say that the expected life of a phone is 2 years. You've got 18 months use out of it - so you get a 25% refund.

If O2 refuse to refund, you can try exactly the same argument with the credit provider. (But don't necessarily expect them to give in more easily.)

chanz4

eddddy wrote: »

I'd say the bit about the replacement device being 4 months old isn't really relevant.

Go to O2 and say:
- You bought a phone on a 2 year contract
- It has stopped working after 18 months
- Apple confirm in writing that it is not due to misuse or damage
- So by definition, it was not "fit for purpose" (i.e. the phone was not fit for a 2 year contract.)

At best, I suspect O2 would only offer a partial refund - for example, they may say that the expected life of a phone is 2 years. You've got 18 months use out of it - so you get a 25% refund.

If O2 refuse to refund, you can try exactly the same argument with the credit provider. (But don't necessarily expect them to give in more easily.)

Issue is the replacement phone from apple was not the one supplied, and who knows how old it was

boo_star

chanz4 wrote: »

Issue is the replacement phone from apple was not the one supplied, and who knows how old it was

Does it matter?

A refurb is a replacement.