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Liability for Defective Goods purchased on a credit agreement Advice Online

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Liability for Defective Goods purchased on a credit agreement Explained

Items bought on hire purchase or a credit agreement are classed as a Bailment of Goods. The finance company owns the goods until the final installment on the agreement is paid. Until this time there is no transfer of property for the purchaser to rely on.

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Sample Questions

  • “… I recently bought a car on finance from my local dealer…the car was still under warranty…it broke down after 2 months on the road with a serious engine management problem…I returned it to the dealer but they said their [own] warranty did not cover this type of fault…I contacted the maker but they referred me to the finance company who I bought the car through…they in turn referred me back to the dealer…I feel I am going in circles…who is liable…”

     

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