Section 75 claim query

Sonya-m

We took out a credit purchase for a Leesa mattress in January 2020 with Dividebuy being the credit provider. We now have a warranty claim for the mattress but the business has ceased trading in the U.K. so we can’t utilise the 10 year warranty offered when we purchased it. So out next plan was a Section 75 claim through Dividebuy but looking at the agreement there’s a statement that the agreement isn’t covered by the Consumer Credit Act 1974. It doesn’t say why it’s not just that by signing the agreement we accept the terms. 

I’ve looked further into the T&cs and on the Dividebuy website they confirm they are regulated by the CCA 1974 but that ‘credit agreements that are interest free and less than 12 months are unregulated’. Now my agreement term stats it’s for 12 months and is interest free. But does that mean it should be regulated because it’s not less than 12 months? Any idea where we stand from the perspective of making a Section 75 claim?

The other potential route is to claim via our credit card as the first payment was made on a credit card and I understand you can go down the Section 75 route with your credit card company even if only a deposit was paid by credit card. 

Sandtree

The CCA isn't something a credit provider can opt out of but the credit agreement does need to fall into the bounds of the CCA and loans can be structured in ways to ensure it doesn't. 

To the best of my knowledge interest is irrelevant but duration, number of payments etc all define if its in or out and for S75 specifically there are additional tests on the value of the purchase as well.

Having looked at this before, but many years ago, the key things to check are things like when the loan started and when it was scheduled to be paid off, how many payments etc. It would seem unlikely a credit provider has messed up interpreting the law but errors do happen.