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If something goes wrong with goods or services bought on credit

If something goes wrong with something you have bought, you usually have the right to a repair, replacement or refund from the trader. These are known as your consumer rights.

You can also make a claim for the fault from your finance company if you paid for the item or service using a:

• credit card
• store card
• '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

You have different rights if you buy something with a hire purchase or conditional sale loan and it turns out to be faulty (see link below).

• Consumer rights - an introduction

• Hire purchase and conditional sale loans – your rights

When you can make a claim

If something costs between £100 and £30,000, you can make a claim from your finance company for faults or if the trader goes out of business.

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.

If you paid for something using a Mastercard or Visa credit card, you also have the option of making a claim through their 'chargeback' scheme. For example you can make a claim from chargeback if there is a fault with something you bought that cost less than £100.

For advice about who to claim from, contact Consumer Direct, the government funded consumer advice service.

• Contact Consumer Direct

How to make a claim

You should make your claim to the finance company in writing and include copies of any receipts. Send your letter by recorded delivery so you have proof of your claim.

If you are claiming under a chargeback scheme, write to the card company as soon as you know there is a problem. You usually have to make a claim within 120 days of buying the goods or service.

• Get help writing a letter to your finance company

Complaining about goods or services that cost more than £30,000

If something you bought cost more than £30,000, you can only make a claim against the finance company if you bought it after 01 February 2011.

You 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

To start a claim, first complain to the trader. If you don't agree with what the trader offers you, you can make a claim from your finance company.

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 eight 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.

• Disputes when buying goods and services - ways to resolve a complaint

• Complain to the Financial Ombudsman Service Opens new window

More useful links

• Buying a car - your rights

• Buying furniture and your consumer rights

• Signing contracts - recognising and reporting unfair terms

• How to find a reliable business