Multiple S75 cover on new car

agrinnall

I've signed up to buy a new car today. I paid the deposit on my credit card (pleasantly surprised to find that there's no charge for using a CC for amounts under £1000), I have taken out a Nationwide personal loan which I specified was to buy a car, and to get Ford cashback I'm taking out their HP for the minimum eligible amount of £2500 which I'll pay back as soon as I have the car.

My questions are, do I have S75 cover from all three credit providers, and if needed (which hopefully it won't be) can I include any or all of them in a joint claim?

shaun_from_Africa

agrinnall wrote: »

My questions are, do I have S75 cover from all three credit providers, and if needed (which hopefully it won't be) can I include any or all of them in a joint claim?

It is unlikely that S75 will apply to the loan from Nationwide but it will apply to the two credit card issuers.
The reason for the loan not being covered is that there must be arrangements in place between the supplier of the credit and the supplier of the goods, something that wouldn't be the case. Nationwide gave you the money then you gave this to the car supplier and as such, no direct link between the two.

As to the credit card companies.
In the event of a problem, the choice is yours as to whether you claim from one or the other or both.
Claiming from one would be better than trying to claim from both as doing that would probably lead to long discussions (and hence delays) between the two credit suppliers.

wealdroam

agrinnall wrote: »

...and to get Ford cashback I'm taking out their HP for the minimum eligible amount of £2500 which I'll pay back as soon as I have the car.

It might be worth noting that Hire Purchase agreements are not covered by Section 75 of The Consumer Credit Act, although I believe they are covered to some extent by another part of the same Act.

bris

What you will find is a conflict of interest with all parties saying they other is liable. To many is not always a good thing.


However if your buying it from a Ford dealership the chance you ever have to rely on S75 are slim to none.

agrinnall

Thanks guys. I forgot to say that the CC is Nationwide too so they're in the frame anyway, so if the HP doesn't come under S75 it looks like the CC would be the one to use if required.

Bris, I'm sure you're right, I've never had any issue buying new from a main dealer that has been big enough to require any outside intervention, and hopefully this one will be the same.

unholyangel

agrinnall wrote: »

Thanks guys. I forgot to say that the CC is Nationwide too so they're in the frame anyway, so if the HP doesn't come under S75 it looks like the CC would be the one to use if required.

Bris, I'm sure you're right, I've never had any issue buying new from a main dealer that has been big enough to require any outside intervention, and hopefully this one will be the same.

I'm trying to figure out how hire purchase would work in this scenario. I mean when you buy on HP, you don't actually own the goods - the HP company does. You then rent them off the HP company and have the option to buy at the end.

If it is HP financed, you may not be able to use section 75 at all. Because you won't have purchased a car from the dealer.

Nessun_Dorma

wealdroam wrote: »

It might be worth noting that Hire Purchase agreements are not covered by Section 75 of The Consumer Credit Act, although I believe they are covered to some extent by another part of the same Act.

I didn't know that. I must say, it doesn't make much sense, though. What are the principles behind this not being covered?

ETA:

Just done a bit more reading and it is little clearer. It seems to be covered (in this circumstance) by The Supply of Goods (Implied Terms) Act 1973, which kind of gives it parallel responsibilities, as applied in section seventy-five.