Car purchase Section 75 claim advice

marcia_

Of course they need to tell the dealer they accept their offer under protest and then contact the bank. But they need not worry about the next step of getting the bank involved because it doesn't effect the dealer.

S75 is a guarantee of your money back as the bank is liable, the bank can't just refuse to acknowledge it.

sheramber

https://forums.moneysavingexpert.com/discussion/comment/82127592#Comment_82127592

The dealer is offering to refund the purchase price MINUS £1000.

Sandwich

https://forums.moneysavingexpert.com/discussion/comment/82127618#Comment_82127618

But the bank could reject the S75 claim on the grounds that I accepted the partial refund, and the FOS could see it the same way. FWIW, ChatGPT says this:

"The problem is that your dealer has not offered £7,500 as an undisputed part payment. It has offered £7,500 as its proposed resolution of the vehicle dispute. That distinction matters because FOS has published decisions where accepting a supplier’s “full and final” settlement meant there was no remaining “like claim” against the lender under Section 75. So your concern about accidentally compromising the remaining £1,000 is real, not theoretical."

marcia_

AI can be great but did you tell it your bank insists on you accepting the partial settlement before they will assess a s75? Hence why you do it in writing specifying it is under protest

Sandwich

https://forums.moneysavingexpert.com/discussion/comment/82127701#Comment_82127701

Yes, I gave it all the details. It told me to push back on the bank. It linked to FOS cases online where the claim was unsuccessful because the consumer had accepted a settlement and then did a Section 75 claim.

born_again

https://forums.moneysavingexpert.com/discussion/comment/82127904#Comment_82127904

Of course retailer is telling you to push back against the bank. As that would mean they are not paying you back.

Just tell retailer that you are taking them to court as they sold the car & watch them squirm

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82128016#Comment_82128016

It wasn't the retailer telling OP to push back on the bank, it was ChatGPT…

born_again

https://forums.moneysavingexpert.com/discussion/comment/82128264#Comment_82128264

Ah.

Reminds me Daughter did 3 peaks on Friday, one of the other in the group took chat gpt advice on what to eat before walk. Was on their knee's half way up 1st climb being sick. 🤦‍♀️

A_Geordie

With respect to any suggestion that the OP should accept the retailer's offer 'under protest' in full and final settlement and then seek to reclaim the remainder from the bank, it is dangerously poor advice.

Full and final settlement means you accept what is being offered and that is the end of the road for the dispute. You cannot accept it under protest and because under s75, the bank would have the same defence as the retailer, they would argue that the matter has already been settled. So in this instance, it would seem that ChatGPT is correct to push back, although I do feel the bank is misrepresenting the law with what they are suggesting.

If the OP wanted to come to an agreement with the retailer, then the settlement should be in writing and agreed that the retailer is making a part payment of the claim, and it is acknowledged that the OP has the right to pursue the remainder of the balance with the bank as the creditor under s75 of the CCA 1974, but will not pursue the retailer for the remaining balance.

The alternative is to not accept any settlement offer and pursue the bank or the retailer (or both) directly for the full balance.

MyRealNameToo

Accepting a partial settlement from the merchant and pursuing the bank for the remainder also would not be mitigating your losses so the bank is talking nonsense as you arent reducing the overall claim by doing this.

It would mitigate the banks losses but the bank and merchant are jointly and severally liable and therefore you can claim 100% from either of them or any split that you may want/be able to achieve (your just cant recover more than 100%). This assumes its under S75 and not S75a which does require you to exhaust the merchant before turning to the lender.