Tesco Bank section 75

sammieking

UPDATE 2
We went to see them and we were told in no uncertain terms they would only exchange (not for like for like but another make and model only) if they get another chance to repair!
(confirmed by dealership email, right after our meeting)
Tesco stated to us and told the dealership that was not even an option anymore.
Is the dealer risking credit company santions by ignoring their instructions to settle this dispute.
The dealer told us to completely ignore Tesco
What options are available to Tesco Bank if any if dealer refuses to budge?
Can they take it out of the dealers hands all together?

wealdroam

As George Michael has already pointed out, your card issuer is equally responsible for performance of the contract.

MSE's Section 75 guide quotes from Section 75 of The Consumer Credit Act:

75. — (1) If the debtor under a debtor-creditor-supplier agreement falling within section 12(b) or (c) has, in relation to a transaction financed by the agreement, any claim against the supplier in respect of a misrepresentation or breach of contract, he shall have a like claim against the creditor, who, with the supplier, shall accordingly be jointly and severally liable to the debtor.

So you can seek a remedy directly from the CC co., without even speaking to the selling dealer any more.

In other words, you are entitled to a full refund of your money from Tesco Bank with no strings, conditions, etc, except that the car then belongs to Tesco Bank. Tesco Bank could reasonably ask you to return the car to the selling dealer before giving you your refund.

[STRIKE]If Tesco Bank won't do that, just send them a letter before action, as you would before starting legal action against anyone.[/STRIKE]

After further thought... If Tesco Bank won't do that, then complain to The Financial Ombudsman Service.

George_Michael

sammieking wrote: »

Tesco Bank has told them to replace like for like within two weeks or give full refund

Do you by any chance have this in writing? (e-mail would be fine).


If you do, then Tesco bank have shot themselves in the foot as by stating that if the dealer can't supply a like for like replacement then they must give you a full refund, they are in effect saying that they themselves are also liable for supplying a replacement or full refund.

unholyangel

If op reported the fault after just 1 day of having the car and the subsequent time has been waiting on a remedy, OP is most likely entitled to insist on a refund rather than a repair or even a replacement.

Personally, if I was the OP, I'd go for the refund and wouldn't want to take another vehicle off this guy.

OP to answer some of your questions, the card company are indemnified by the dealer for any losses they incur dealing with your claim. Which is probably why he's telling you to ignore them and deal with him.

If you're set on a replacement, I'd tell him either he can offer a like for like replacement or you'll be pursuing a full refund with the card company - along with any other reasonable costs you have incurred due to his breach of contract.

sammieking

Hi guys thanks for all your advices so far, we had to laugh at them yesterday, as they stated they had the perfect solution they offered us a car we deffo did not want at 7k more to pay, nothing like taking the pi**.

They were quite aggressive as well and tried to make out they were the real victims, not us.

McKneff

Remind them also that if you do take it to the Ombudsman, they have an automatic fee to pay and I believe its about £500 these days, win or lose

sammieking

UPDATE 3.

Bank now saying they have made recomendations about the case and has to be put in front of their management but will give no indication of which way they are going to go and will only give response in writing within the next 7-10 working days, do any of you guys know or perhaps speculate the likely outcome?

agrinnall

From what you've told us they would be foolish to turn you down as it's very likely that the Ombudsman will side with you and that'll just cost Tesco Bank even more in the long run.

wealdroam

sammieking wrote: »

...do any of you guys know or perhaps speculate the likely outcome?

My speculation is the same as it was when I wrote post#13:

wealdroam wrote: »

...you are entitled to a full refund of your money from Tesco Bank with no strings, conditions, etc, except that the car then belongs to Tesco Bank. Tesco Bank could reasonably ask you to return the car to the selling dealer before giving you your refund.

Remember that I also wrote:

wealdroam wrote: »

If Tesco Bank won't do that, then complain to The Financial Ombudsman Service.

sammieking

UPDATE 4

Hello guys, well tesco has confirmed they are refunding the whole amount directly! (well done tesco).
Next issue Tesco now claims they own car and wants us to to DISPOSE of it?

Tesco has not as yet told us how this is going to work in practice until we see the details in writing has anyone else been in the same state.
One question that begs to be answered here is if they own the car how can we legally drive a care we no longer own and if we are not insured how can we dispose of it without beeing towed away?