Who is responsible when goods are faulty?
This depends on the type of credit agreement. The heading on the top of your agreement will tell you what type of agreement you have. Hire purchase This type of credit is commonly used to fund the purchase of vehicles. When you agree to buy a car on hire purchase, the garage sells the car to the finance company which, in turn, hires the car to you with an option to purchase. The finance company owns the car and ownership does not pass to you until the last payment has been made. During this time, you must not sell the vehicle without the finance company’s permission. You are not bound to purchase the vehicle as the agreement gives you a right of termination under certain conditions (see below). Your contract is with the finance company and not the supplier. It is, therefore, the finance company which is responsible to you if the item is faulty. Your letter of complaint should be sent to the finance company, with a copy to the retailer. Conditional sale This is similar to hire purchase
