Consumer Credit Act 1974 and Section 75

Alan_R_786

Hello all and hope you can help and hope that this is the right forum

I bought a second hand car last year.  Date of purchase: 21st June 2022

Price paid - £51,700.

·        Personal Finance (Loan) - £25,000

·        Own Money - £26,700

There have been multiple issues since I bought it, and finally in October 2021 I wrote to the garage to reject the car as it had been miss-sold, not as described in their advert and invoice, and not fit for purpose.  This was due to the car having been heavily modified – the exhaust system and all of the cars catalytic convertors had been removed – rendering it an MOT failure; which is due on the 18th March 2023.  After this date – the car will be a MOT failure, roadworthy and have to be SORN

I have had to engage solicitors, who have written a final letter before claim – the garage has until this Friday 10th March to respond and refund me my money and direct costs.  I don’t expect that they will reply – so will have to go before the courts. 

The lead times for courts where I am is 9 months, and in that time the garage may go bust / cease trading

My question relates to the Consumer Credit Act 1974 and Section 75.  My personal finance agreement states – This is a credit agreement regulated under the Consumer Credit Act 1974. 

I have approached the finance company and they state that there is nothing that they can do, as it wasn’t a secured loan and that customers are not covered under section 75 of the Consumer Credit Act in these loans

Is this correct as having had a brief look at the Act, it would appear that both the finance company and the garage are jointly liable. 

Im hoping that the Finance company contact the garage and apply some pressure to them to resolve the matters ASAP

Help would really be appreciated

Thanks in advance

HillStreetBlues

Section 75 won't apply as the car was over the limit as would need to be under £30k
It's the price of then item bought, even if you paid some via a credit.

powerful_Rogue

Alan_R_786 said:

Hello all and hope you can help and hope that this is the right forum

I bought a second hand car last year.  Date of purchase: 21st June 2022

Price paid - £51,700.

·        Personal Finance (Loan) - £25,000

·        Own Money - £26,700

There have been multiple issues since I bought it, and finally in October 2021 I wrote to the garage to reject the car as it had been miss-sold, not as described in their advert and invoice, and not fit for purpose.  This was due to the car having been heavily modified – the exhaust system and all of the cars catalytic convertors had been removed – rendering it an MOT failure; which is due on the 18th March 2023.  After this date – the car will be a MOT failure, roadworthy and have to be SORN

I have had to engage solicitors, who have written a final letter before claim – the garage has until this Friday 10th March to respond and refund me my money and direct costs.  I don’t expect that they will reply – so will have to go before the courts. 

The lead times for courts where I am is 9 months, and in that time the garage may go bust / cease trading

My question relates to the Consumer Credit Act 1974 and Section 75.  My personal finance agreement states – This is a credit agreement regulated under the Consumer Credit Act 1974. 

I have approached the finance company and they state that there is nothing that they can do, as it wasn’t a secured loan and that customers are not covered under section 75 of the Consumer Credit Act in these loans

Is this correct as having had a brief look at the Act, it would appear that both the finance company and the garage are jointly liable. 

Im hoping that the Finance company contact the garage and apply some pressure to them to resolve the matters ASAP

Help would really be appreciated

Thanks in advance

£30,000 is the maximum for section 75. This is of the entire price, not just the amount placed on credit.

Alan_R_786

Thanks for replies.  I would be going to the finance company for the Personal Loan Amount only - £25,000.  Would that make a difference?

powerful_Rogue

Alan_R_786 said:

Thanks for replies.  I would be going to the finance company for the Personal Loan Amount only - £25,000.  Would that make a difference?

Afraid not. s75 only makes them jointly liable if the overall price is between £100-£30000. As the price of the vehicle was £51,700 the finance company will not be liable under s75.

Alan_R_786

Any other ideas ?

powerful_Rogue

Alan_R_786 said:

Any other ideas ?

Letter before action and Small Claims Court will be the only option. You won't be entitled to a full refund though, you have near enough had 2 years use of the vehicle.

Also, just noticed it was a personal finance loan, in which case the finance company are right on that front as well as it's not tied to any specfic purchase.

HillStreetBlues

Alan_R_786 said:

Any other ideas ?

Only what you are  doing, LBA  then court.

Alan_R_786

Approaching 10 months since I bought it.  Letter of rejection was October last year making it 5months 

powerful_Rogue

Alan_R_786 said:

Approaching 10 months since I bought it.  Letter of rejection was October last year making it 5months 

My bad, forgot what the year was. As such, they can make a deduction for the 10 months use. Did you stop using the vehicle in October?

Edit - You said you sent the letter in October 2021. That's where I got muddled.

Alan_R_786

Yes I did.  Have had to hire a car in the meantime