Garage now closed and finance company won't help

[IdaInFife]

Hi Need advice,

 

Friend bought a car under a year ago with 3 month warranty. Water was coming in at the front and pouring out doors when heavy rain.

 

Went back to the garage a few times and they kept saying they would be in touch when the can repair via their body shop.

 

Went back to garage/body shop and now it's closed.

 

Contacted finance company who want proof that it has been like that since purchase..

 

A couple of mechanics said it would be hard to prove.

 

Is there anything we can do?

[sequenci]

Really not my area (rusty!) but could there be any recourse via s75 CCA? Or is that simply only for credit card transactions?

[dw190]

Really not my area (rusty!) but could there be any recourse via s75 CCA? Or is that simply only for credit card transactions?

 

s75 of the CCA covers all credit transactions were goods or services are involved.

 

The credit providor is jointly and severally liable with the supplier. If the supplier goes bust or vanishes the credit providor has to bear the brunt of any warranty and statutory rights you had with the supplier.

[Conniff]

Have you got anything with the dates or that could show you visited the seller to complain ?

[IdaInFife]

Nothing in writing - they just kept going back to the garage in person and were being told will get the 'parts' and will be in touch.

 

Went back 2 weeks ago and it was all locked up.

[IdaInFife]

So I am need to write a letter to them

 

any suggestions on what to include?

[Conniff]

A bit of guesswork as water coming in at the front can have a couple of reasons.

 

If it has a sunroof, the drains could be disconnected/broken/blocked. If there are front drains, water needs to be poured into the sunroof gutter and see if that comes into the car.

 

Windscreen leak, again pour water over the car, maybe with a hose to see if that is where it is coming in.

 

Heater drain blocked. On the front bulkhead there will be the heater air inlet and in that in trough there will be a drain probaby with a rubber non return valve. If that is not letting water past, it will enter the car through the air passage into the car.

 

The other thing (less likely) is the door seal.

 

If the finance is HP, the car belongs to the finance company until the final payment has been made, so in effect, they own the car. Any claim would be purely against the finance company.

 

They might refer you back to the seller, however, they are legally responsible and you must remind them of this fact.

 

So what sort of finance does it have as it is different for a loan.

[IdaInFife]

It is HP and we cannot go back to seller as they went bust and the finance company are aware of this.

 

The finance company are asking her to prove that she reported this to the garage but we can't.

[Conniff]

Trying an easy get out, it is their legal responsibility.

 

Write saying you cannot supply physical proof, but you are reminded that under the 'Consumer Credit Act 1974' or the 'Conditional Sale Agreement regulated by the Consumer Credit Act 1974', you are soley responsible.

[Conniff]

This is from the FOS site and backs up what I have said.

 

Because they are unsure how these arrangements work, many consumers initially contact the original supplier – rather than the hire purchase business – if there is a problem with the quality of the goods supplied. This may sort out the problem. But the hire purchase business remains responsible if things are not resolved.

[garage flower]

"Because they are unsure how these arrangements work, many consumers initially contact the original supplier – rather than the hire purchase business – if there is a problem with the quality of the goods supplied. This may sort out the problem. But the hire purchase business remains responsible if things are not resolved"

 

The part in bold would suggest that if the problem was present at the point of sale then yes the finance company is responsible. If the problem was not present at point of sale then they are not.

 

Within the first six months of the agreement the onus is on the finance company to prove the issue was or was not point of sale. They will have a facilty where they can have an independant test done to decide whether the problem was likely to be there when the car was sold.

[Conniff]

I think you might be confusing the Sale of Goods with the Consumer Credit Act

[garage flower]

The finance company can't be expected to be liable for any problems that may occur on a car while financed, they will only help if the problem was present at the point of sale and not a fault that had developed while the car has been in the possession of their customer.

[dw190]

The finance company can't be expected to be liable for any problems that may occur on a car while financed, they will only help if the problem was present at the point of sale and not a fault that had developed while the car has been in the possession of their customer.

 

The finance company is equally liable with the supplier. If the supplier's liability is still valid like a warranty and they go bust, that liability continues with the finance company under s75.

[garage flower]

If the fault is covered by the warranty provided then yes the finance co is liable if not then it returns to a point of sale issue

[Conniff]

There is no point in talking about a warranty, the car was bought a year ago with a 3 month warranty so even though a warranty has no relevence at all, it is out of the picture.

 

The finance company is equally liable with the supplier. If the supplier's liability is still valid like a warranty and they go bust, that liability continues with the finance company under s75.

 

That is the correct interpretation of the Consumer Credit Act (HP). You can take it back to the seller to deal with but the ultimate responsibility is with the finance company as owner of the car.

[garage flower]

... if the issue was present at the point of sale. Otherwise finance companies would find themselves liable to fix any problems found on their cars which of course isn't the case.

[IdaInFife]

Hi yes the fault has been present since purchase

[Conniff]

So what action is your friend going to take ?

[IdaInFife]

Well she dealing by phone grrrrrrrr

 

so letter will be on way to finance company asking for date and what garage the car will be fixed at reminding them of their responsibilities.

[scaniaman]

If original garage has closed, check local papers etc to see if any new car sales places have opened in your area or anywhere in Fife. Not uncommon for traders to close then reopen after a few days in other premises and under a different name.!!!!!!!!!!!!!!!!1