Section 75 7 September 2022 at 1:36PM in Credit cards 5 replies 122 views

Cuttsy1987

Hello, I bought a used car and collected it from a dealership on 02/09/2022. In less than a few hours hours I noticed a fault with the car. The inside of the car was filling up with the smell of burnt rubber / oil and there was a rattling noise coming from the engine. I took the car to my local garage who diagnosed numerous faults (I have the health report for my car to prove this). I spoke to the dealership who is refusing to refund me under the Consumer Rights Act 2015 as I signed something saying that I am buying the vehicle knowing there is faults with it being a used car, however if I knew the car was this bad I would not have bought it as it is unsafe and I have 2 children under the age of 4 so I wouldn't risk it.

My first question is Should I still be covered under the consumer right act 2015 if if I have signed something? My second question is Would I be able to claim under Section 75 as I paid part of the purchase by credit card? My last question is If i was successful on a section 75 claim. What would happen to the car? I am currently paying for Insurance on a car that I cannot drive so will the car go back to the dealer or the credit company. Or do I keep it? Who pays the claim money? Is that the credit card company or the dealership as they are refusing to refund me?

Thanks
Mark

DullGreyGuy

1) Caveat emptor doesn't apply when buying from a professional seller outside of auctions. Their contractual clause cannot be a fully get out of jail free card and they'd expected to take reasonable care to disclose any notable issues with the vehicle which aren't consistent with its general age etc (they wouldnt have to declare that tyres aren't all brand new etc).

2) Most likely, assuming its your card, your name on the invoice for the car and its not above the S75 limit

3) A S75 is settled by the card issuer and so in principle the car becomes their property. In reality banks dont normally want fleets of broken down cars and so they may well say you can retain the vehicle but you must clarify it with them rather than assume. 

Cuttsy1987

@DullGreyGuy - Thank you so much for your answer. Made me feel better.

Bradden

I suspect it may be more compliacted.

1, I beleive you should  to return the car to the dealer to reject it - even if they don't want it back. 

2,  Without knowing exactly what you signed it's hard to be sure whether you could still reject the car.. it may also depend on age/cost paid.

DullGreyGuy

Bradden said:

I suspect it may be more compliacted.

1, I beleive you should  to return the car to the dealer to reject it - even if they don't want it back. 

2,  Without knowing exactly what you signed it's hard to be sure whether you could still reject the car.. it may also depend on age/cost paid.

Returning the car to the dealer and then doing a S75 claim in theory could add complexity given the car on paper becomes the banks following settlement and the OP would have to hand it over to the bank if requested which would be difficult if they've given it to someone else.

There is no obligation under S75 for the bank to be the backstop, the act makes them jointly and severally liable meaning and so as soon as there is a breach of contract (which selling faulty products is) you have a free choice which to deal with... normally dealing with the merchant is quicker than the bank though

Most statutory rights cannot be signed away. Price and age are a consideration, as already mentioned the vehicle should be consistent with the former and somewhat the later but the dealer cannot turn round and say that the consumer should have known from the price that the car had fatal faults, its their job to disclose things not for the consumer to deduce them. 

Cuttsy1987

@Bradden @DullGreyGuy Thank you both for your help. The car was bought for £2,785 and the faults were not disclosed. Found the advert since the issues to see whether I had missed anything on there regarding the fault.
The ad actually states that it "drives very well" which isn't the case and that it comes "with a new 12 months MOT" which it actually only came with 5 months. If a new MOT was done then the fault might have been found?