Goods & services bought on Credit

 

Rights where goods or services are bought on credit

If you bought goods or services using a credit agreement, credit card or Visa or Maestro debit card, you may have additional rights if:

  • there is a fault with the goods or services
  • the trader has gone bust

If you paid for good or services costing between £100 and £30,000 using a credit card or credit agreement, you can make a claim against your finance company.

If you’ve paid using Visa, MasterCard or Maestro, you may be able to claim your money back through their ‘chargeback’ scheme. You will need to contact the card company to make a claim.

This covers:

  • credit cards
  • store cards
  • ‘credit sale’ agreement – the trader provides the goods and finance, eg you buy a bed from a store and pay in monthly instalments

 This means you can make a claim from the finance company:

  • if the trader won’t give you a repair, replacement or refund
  • if the trader has gone out of business

Note:

  1. You have different rights if you buy something with a hire purchase or conditional sale loan and it turns out to be faulty.
  2. If something costs more than £30,000 and you bought it after 01 February 2011, you may be able to claim against your finance company. However, you still can’t make a claim if:
  • you paid on credit card
  • the credit agreement is for more than £60,020
  • you took out the loan for business reasons
  • you arranged the loan yourself
  • your credit agreement doesn’t say it’s for something specific, like a car or a new kitchen

 What happens if your claim is turned down?

If the finance company refuses to compensate you, you can make a complaint to the Financial Ombudsman Service.

You will need to give the finance company 8 weeks to sort out your problem before you complain to the ombudsman. If the ombudsman can’t help you, you may need to take action against the trader or the finance company to sort out your dispute.