The Amazing Power Of A Credit Card When Rejecting A Car
Friday, 24. May 2019
I read with interest the case of Alexia Ohene as reported in What Car. Alexia bought a used car but sadly 14 days after taking delivery the car developed a problem with its clutch. The garage agreed to take the car back to repair but couldn’t take it for 5 days due to a backlog in the workshops. However, they offered Alexia a loan car but he would have to collect the car which he couldn’t.
He, therefore, decided to reject the car as he had the car less than 30 days, something he is fully entitled to do under the Consumer Rights Act. When he mentioned this to the dealer he was met with a shower of abuse and threats to take him to court. They insisted that he keep the car saying that it would be stupid to reject it and they would deduct a mileage charge for the miles he covered and the cost of fitting some bumper protectors that the customer had requested.
The car had undergone a new MOT, service and inspection prior to collection so the clutch problem should have been identified and this failure of a major component was certainly grounds for rejection. What Car suggested, and I agree, that Alexia, shouldn’t get into an argument but simply send a formal letter to the dealer, by recorded delivery, simply stating that he wishes to reject the car as a result of suffering the failure of a major component within the first 30 days of ownership, quoting the Consumer Rights Act.
The dealer had no right to charge for mileage use and if the bumper protectors could be removed without damage there should be no charge for removing them. They then go on to say that if the customer still has problems that he should contact Trading Standards – again I agree but you now have to contact trading standards through the Citizen’s Advice Bureau, not a major issue but it takes longer.
They then suggested that the customer contact the Motor Ombudsman, something I don’t recommend as dispute resolution. You can only have your complaint listened to if the dealer is signed up to the Motor Ombudsman which is paid for by the very companies that are signed up. Think you’ll get a favourable solution? In my opinion a complete waste of time.
What he should have done in the circumstances is pay a deposit of say £100 on a credit card. This means that under the terms of the Consumer Credit Act you can now get the credit card company to take back the car as under Section 75 they are jointly and severally liable for the quality of the car. And if you don’t get a result from the credit card company you can take it up with the much fairer Financial Ombudsman.
It’s a shame that the motor magazines don’t go quite far enough or have enough knowledge when coming up with solutions. By Graham Hill
