Consumer Credit Act and product warranty

[ElectronicFur]

I purchased a product using my credit card that came with an extended 5 year product warranty.

The product malfunctioned and I tried to make a claim under the warranty, but received no response from the company. It turns out the company has gone into administration. Is this covered in any way under the protections of the Consumer Credit Act?

[AF62]

If the product was purchased with a credit card and cost more than £100 and less than £30,000 then the credit card company is liable for the warranty period as that was part of what you purchased - example given on this Trading Standards page - https://www.anglesey.gov.wales/en/resid ... ods/122525

Q. I had damp-proofing work carried out on my house five years ago by a limited company but I've noticed some rising damp under a bay window. I didn't think this should have happened so soon. I complained to the company that carried out the work as I had been told it was covered by a ten-year guarantee. However, the company claims that the original company went into liquidation and it is in fact a totally different company. It is refusing to honour the guarantee or carry out any remedial work unless I pay. Can they do this?

A. Your contract for the work and the guarantee was with the original limited company and it is responsible only whilst it is trading. If it ceases trading or the premises has been taken over by another business, you cannot enforce the guarantee. If you paid for the work by credit card or on finance arranged by the trader and if it cost more than £100 but less than £30,000, you are protected by the Consumer Credit Act 1974. Section 75 of the Act makes the card / finance provider as responsible as the trader for a breach of contract or a misrepresentation. You are entitled to take action against the trader, the card / finance provider or both. This does not apply to charge cards or debit cards. Some companies offer insurance-backed guarantees for this sort of work. This means that the guarantee is underwritten by an insurance company and exists in its own right, separate from the company that carried out the work. If the company disappears or goes bust, you should still be able to make a claim under the guarantee from the insurance company for the lifetime of the guarantee. Check your guarantee carefully.

[AF62]

And just to add with my experiences of s75 -

- You will likely need to be a little forceful with the front line bank staff to make clear you are making a s75 claim and not a 'chargeback', but once you get to the s75 team they know what they are doing.

- Unless the product is something costing thousands then they will likely simply refund you and ask for you to dispose of the product (and provide proof of its disposal) as unlike retailers they don't have the facility to repair the item (or be bothered with that hassle).

[gryffron]

It might be. Got to be careful though.

1) Warranties are usually from the manufacturer, not the retailer. Section75 liability only covers the retailer, the person you bought it from.

2) Warranties are part of the contract you paid for, and thus covered by s75, BUT warranties in the UK are the provider's opportunity to write ANY terms and conditions they like. They often heavily favour their side and have loads of getout clauses. Sometimes ridiculous ones: e.g. "If you switch it on the warranty is void". "Excessive use" is a more common one that can apply to almost anything, how can they prove what is "excessive" or you prove you didn't?

3) You're generally better off relying on Consumer Rights Act 2015, rather than warranties. But that only covers "inherent faults" in the goods. Not wear-and-tear, which a warranty might, if it is a good one.

So I'm not disagreeing with what AF62 says. Yes, a "retailers" warranty is part of the contract and becomes the responsibility of the Credit Card Company. But warranties in the UK are generally pretty worthless, and remember the CCC has all the same warranty getouts the original retailer had.

It's worth asking the CCC. But their liability isn't clear cut in this instance.

Gryff

[AF62]

It's worth asking the CCC.

It certainly is.

I have had several s75 refunds on goods where the retailers claimed the warranty had expired and it was 'tough luck', the largest being an expensive fridge freezer which expired at four years old. I made a s75 claim based on my assertion that any fridge freezer should have lasted longer than that, and with no quibble I received a refund from the CCC.

[gryffron]

I have had several s75 refunds on goods where the retailers claimed the warranty had expired and it was 'tough luck', the largest being an expensive fridge freezer which expired at four years old. I made a s75 claim based on my assertion that any fridge freezer should have lasted longer than that, and with no quibble I received a refund from the CCC.

Which is just supporting my point (3). That your statutory rights under SOGA/CRA are much more use than warranties.

BTW Did you get 100% refund? I would expect you to get around 50% back, based on the usage you had enjoyed.

Gryff

[AF62]

I have had several s75 refunds on goods where the retailers claimed the warranty had expired and it was 'tough luck', the largest being an expensive fridge freezer which expired at four years old. I made a s75 claim based on my assertion that any fridge freezer should have lasted longer than that, and with no quibble I received a refund from the CCC.

Which is just supporting my point (3). That your statutory rights under SOGA/CRA are much more use than warranties.

Yes, these days I give retailers one chance to resolve the issue and then I take it to the CCC - the most amusing recently was John Lewis who were unhelpful and I got a refund from the John Lewis Credit Card I used to pay

BTW Did you get 100% refund? I would expect you to get around 50% back, based on the usage you had enjoyed.

I did get a full refund, and have for other items that were out of warranty. I got the feeling that the CCC companies really don't want the hassle of arguing whether the lifespan of a say a fridge freezer is eight years, ten years, or whatever. Particularly since if you are not happy with the CCC you could go to the Financial Ombudsman (which you can't with the retailer) and a referral to the ombudsman will cost the CCC far more than a 50% (or whatever) reduction they are trying to argue for.

[ElectronicFur]

Thanks for all the help.

The retailer originally sent me an invoice as well as the 5 year warranty document, and the 5 years doesn't expire until August, so hopefully the CCC will sort this out. I've filled out their dispute form, so I'll let you know how it goes.