[access-uk] Purchasing equipment and protecting yourself
- From: Gordon Keen <gordonkeen@xxxxxxxxxxxxxx>
- To: dfhp@xxxxxxxxxxxxxxxx
- Date: Tue, 3 May 2011 10:57:48 +0100
Hi
Here is a useful piece of information you should keep in mind the next time you
upgrade your access tech or indeed buy any goods over one hundred pounds:
http://www.dailymail.co.uk/news/article-1382928/Credit-card-firms-refund-price-faulty-goods-students-legal-battle.html?ITO=1490
Why credit card firms must refund price of faulty goods
By Sean Poulter
Last updated at 10:37 AM on 3rd May 2011
Student wins battle with bank over broken laptop
A student has struck a blow for shoppers by establishing that a refund on
faulty goods can be obtained from a bank if the purchase was made by credit
card.
The ruling by the Financial Ombudsman Service highlights a law that has been in
place for more than 30 years, which relatively few people have exploited.
Historically, the Sale of Goods Act has given consumers the right to pursue a
retailer for a refund, repair or replacement if a product turns out to be
faulty.
Little known rule: Consumer Credit Act says that where a purchase has been made
with a credit card the card provider is also liable along with the retailer
In theory this right runs for up to six years based on the type of product, the
price paid and a reasonable assessment of how long it should last.
However, high street stores are renowned for ignoring this law by restricting
any guarantee to one year or telling them to speak to the manufacturer.
In these circumstances, shoppers have little choice but to pursue a claim in
the county court.
However, the FOS says the protection provided by a separate law, Section 75 of
the Consumer Credit Act, could provide a more simple solution.
It states that where a purchase has been made with a credit card, the card
provider, generally a bank, is also liable along with the retailer.
FOS has published a ruling where it upheld a complaint by a young college
student - identified as Miss T - who bought a laptop for her studies using a
credit card.
The laptop developed a serious fault after just six weeks, however the store
refused to do anything about it.
After completing her exams, the student contacted her credit card company,
explained the problem and asked for a refund.
However, the card provider turned her away saying it was 'not responsible for
the quality of goods bought with a credit card'.
Subsequent inspections revealed a faulty motherboard that would have cost more
to replace than the value of the laptop.
College student who developed problems with her laptop after just six weeks was
able to make a claim against the credit card company, Financial Ombudsman
Service ruled
The student complained to the FOS which has ruled in her favour with a decision
that will give hope to other shoppers who face the same shoddy treatment from
stores.
It said: 'On the basis of the evidence supplied by Miss T, we said that the
laptop was not fit for purpose, as it should not have developed a fault of this
nature so soon after Miss T had bought it.'
The watchdog said the retailer was at fault, but, significantly, ruled that the
credit card company was also responsible.
FOS said: 'We pointed out to the card provider that it was jointly liable with
the supplier for any breach of contract.
'The supplier had been in breach of contract by selling a laptop that was not
fit for purpose, so we told the card provider to reimburse Miss T for the cost
of the faulty laptop and of the two independent reports she had obtained.'
It ordered the unnamed bank involved to pay a full refund plus £100 for failing
to handle the claim correctly.
The extra protection available from a credit card only kicks in for purchases
of £100 and over. Historically, it has been useful when booking holidays with
travel firms that go bust, but it has rarely been used in the context of faulty
goods.
Peter Shears, the Professor of Consumer Law and Policy at the University of
Plymouth, said shoppers should take advantage of their rights under the
Consumer Credit Act.
'If you are buying something for over £100 and you have a credit card in one
hand and cash in the other, use the card to make the purchase and then pay off
the debt with the money.
'The fact is that you do have extra protection when using a card.
'The FOS ruling spells out a law that has actually been in place for more than
30 years, however, unfortunately, few people have been aware of it.
'I would certainly hope this will encourage more people to turn to their credit
card company in these circumstances.'
The UK Cards Association admitted that, in the past, the finance industry has
not publicised the protection offered by credit cards.However, it said this is
changing.
A spokesman said: 'Section 75 provides fantastic consumer protection. The law
ensures that if goods aren't delivered or are faulty, for whatever reason, then
you can also make a claim on your credit card company, where the supplier is in
breach of contract.
'The goods or services must exceed £100 and be less than £30,000.
'The UK is virtually unique in offering this type of protection on credit cards
because of the way the 1974 Consumer Credit Act is phrased.
'Obviously most people will go back to the retailer as they want a replacement
but they can justifiably go to their credit card company and ensure they get
redress through that channel.'
She added: 'Card companies can't shirk from their responsibilities under the
law.
'After perhaps being reticent about trumpeting this as a benefit, card
companies accept they have a legal liability and that this is one of those
instances where using a credit card works out in your favour as a customer.'
Share this article:
Remember though use the credit card not your debit card - that's treated as a
cash purchase.
Regards
G
From Bridgerule in glorious Devon, England.
Catch the buzz at http://www.bridgerule.co.uk
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