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  1. #1

    Section 75 - costs

    My CC lender has requested documentation regarding a section 75 claim for breach of contract (faulty goods, fault present from the outset/ within 6 months from date of purchase).

    Amongst others the lender's form asks regarding details for claiming costs - now the question is:

    What can be applied regarding costs - as stated above, the fault has been present / obvious from the date of purchase?:

    The manufacturer has collected and returned the item once within 6 months of the purchase date, part repaired the item with the major fault remaining unrepaired, allegedly because they could not source the correct spares.

    Since then, after much communication between differenct sections of the manufacturer they have agreed to another, final repair and since collection of the item more than 3 months ago nothing has happened.

    The purchase date is now more than a year ago (though as stated above, the fault was documented with the manufacturer well within the 6-months period) and the item could not be used throughout the whole period due to the fault(s).

    If it were a car (only for sake of argument) and there was a fault - at least one could get a courtesy car or temporary replacement for the lack of use of the original item -

    Can the lack of usage of the item be included as part of costs (or damages?) and how much would be applicable - similar rates like statutory interest which is calculated on outstanding debt?

    It seems according to this MSE-story that statutory interest can at least be charged if it went all the way to the FOS or CC?!

  2. #2
    Costs are actual costs incurred. If you didn't incur any as a direct result of the breach of contract then you can't claim any.

  3. #3
    Can you say what it is? I always find it odd when people miss out what seems to me a key part of the story. Granted it doesn't affect the principle of the question, but it avoids unnecessarily hypothetical answers.

    But, for example, if it was a washing machine then you could claim:
    1) Costs of using a launderette while your machine was out of action.
    2) The costs of clothes damaged as a result of the fault.

    In principle you can claim interest from when the loss arose. So if you paid 10 in laundry fees two months ago, then you could claim two months' interest on 10.

  4. #4
    Thanks Chattychappy, that's kind of what I thought and there haven't been any real costs other than recorded letter(s) and time for emails and phone-calls to the retailer and manufacturer.

    As a comparable one could take a radiator for example, though the item in question is not as life-critical as a radiator. Still, as the item was quite pricey and the money could have been used for other purposes throughout the year, it is beyond the level of just a nuisance.
    Prior to approaching the lender, the retailer only offered a full refund - which on the other hand would also put me in a disadvantageous position as the item was originally discounted and is currently not available anymore or only if imported at much higher cost.

  5. #5
    I hope the law isn't so generous to oblige the lender to pay you what it might cost now when the supplier has already offered a full refund, you might not have considered buying it at full cost.


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