Understanding Your Rights When Goods Bought on Hire Purchase Are Faulty
Understanding Your Rights When Goods Bought on Hire Purchase Are Faulty
When you buy goods on hire purchase in the UK, you enter into a special type of agreement that allows you to use an item – such as a car, appliance, or furniture – while paying for it in instalments over time. With a hire purchase agreement, you do not actually own the goods until you have made all the agreed payments. This arrangement is different from paying outright, and it comes with specific legal protections and responsibilities for both you and the companies involved.
What Is a Hire Purchase Agreement?
A hire purchase agreement is a contract between you and a finance company, arranged by the seller. You pay an initial deposit, then regular payments over a fixed period. The finance company owns the goods during the term, and you become the legal owner only after the last payment. This setup is similar in some ways to tenancy agreements, where rights and responsibilities are shared between parties until ownership or tenancy ends.
Your Rights Under the Consumer Rights Act 2015
The Consumer Rights Act 2015 guarantees that goods supplied under hire purchase must be:
Of satisfactory quality: Free from faults, safe, and durable.
Fit for purpose: Suitable for the use you made clear at the time of purchase.
As described: Matching any description, sample, or model shown to you.
If your goods turn out to be faulty, you have the right to request a repair, replacement, or, in some cases, a refund or cancellation of your agreement. These rights apply whether you bought a washing machine, a sofa, or a car – if you want to know more about car-specific issues, see our guide on car finance compensation.
Who Is Responsible: Seller or Finance Company?
In a hire purchase agreement, your main contract is with the finance company, not the retailer. This means you should direct your complaint about faulty goods to the finance company, though the seller may also be involved in resolving issues. Both parties are responsible for ensuring you receive goods that meet the standards set out in the Consumer Rights Act 2015.
Time Limits for Making Complaints
Acting quickly is important. You have a short-term right to reject faulty goods within the first 30 days of receiving them, which could entitle you to a full refund or cancellation of your agreement. After 30 days, you can still ask for a repair or replacement. If the problem continues, you may be able to claim a price reduction or final right to reject the goods and end the agreement.
Keep in mind that your rights generally last up to six years in England and Wales (five years in Scotland), but the remedies available may change as time passes. The sooner you raise your complaint, the better your chances of a satisfactory outcome.
Possible Outcomes: Repair, Replacement, Refund, or Cancellation
When you complain about faulty goods bought on hire purchase, you can usually expect one of the following outcomes:
Repair: The finance company arranges for the goods to be fixed at no cost to you.
Replacement: You receive a new item of the same type.
Refund: You may get your money back, especially if the problem is reported quickly.
Cancellation: In some cases, you can end the agreement and return the goods without further payments.
If your initial complaint is not resolved, you can follow a consumer service complaints procedure to escalate your case further.
Understanding your rights under the Consumer Rights Act 2015 is the first step to getting a fair result. Make sure to keep records of all communications and act promptly to protect your interests.
How to Write a Letter to Complain About Faulty Goods Bought on Hire Purchase
Writing a clear and effective complaint letter is an important step when dealing with faulty goods bought on hire purchase. Here’s a step-by-step guide to help you structure your letter and ensure you include all the essential information.
1. Start with Your Contact Details and the Date
Begin your letter by including your name, address, and contact information at the top. Add the date you are sending the letter. This helps the company identify your case and provides a record of when you made the complaint.
2. Address the Letter to the Right Person or Department
If possible, find out who deals with complaints at the company and address the letter directly to them. If you don’t have a name, use a general salutation such as “Dear Customer Service Manager”.
3. Clearly Describe the Faulty Goods
State what the product is, including make, model, and serial number if available. Describe the problems you have experienced in detail. For example:
“I purchased a washing machine (Brand X, Model Y) on hire purchase on 12 March 2024. Since delivery, it has failed to complete a wash cycle and leaks water onto the floor.”
Be specific about the faults and when they started. If the issue affects safety or usability, mention this clearly.
4. Include Hire Purchase Agreement and Payment Details
Give the details of your hire purchase agreement, such as the agreement number, purchase date, and the name of the finance company. State how much you have paid so far and whether you are up to date with payments. This information helps the company locate your records and confirms your status as the hirer.
5. Explain What Remedy You Want
Under the Consumer Rights Act 2015, goods supplied under hire purchase must be of satisfactory quality, fit for purpose, and as described. If they are not, you are entitled to request a remedy. Clearly state what you want the company to do – this could be a repair, replacement, refund, or cancellation of the agreement. For example:
“I would like the washing machine to be repaired within a reasonable time, or if that is not possible, to receive a replacement or a full refund.”
Make your preferred solution clear, but be open to reasonable alternatives if necessary.
6. Set a Deadline for Response
It’s important to specify a reasonable deadline for the company to respond or resolve the issue. This encourages prompt action and gives you a clear time frame to follow up if needed. You might write:
“Please respond to this letter within 14 days of receipt.”
If you need guidance on how to set a formal deadline, see our letter to make time of the essence for goods for a template and further advice.
7. Attach Evidence
Enclose copies of relevant documents, such as your hire purchase agreement, receipts, photos of the faulty goods, and any previous correspondence. Do not send original documents.
8. Keep Copies and Proof of Sending
Always keep a copy of your letter and any attachments for your records. Send the letter by recorded delivery, email with a read receipt, or another method that provides proof of sending. This is important if you need to escalate your complaint later.
By following these steps, you can create a strong and effective complaint letter that outlines your case clearly and asserts your legal rights. If you need more help or want to see other examples, visit our letter templates for problems with goods or services for additional resources and guidance.
Template: Sample Letter to Complain About Faulty Goods Bought on Hire Purchase
Template: Sample Letter to Complain About Faulty Goods Bought on Hire Purchase
Below is a template letter you can use to complain about faulty goods bought on hire purchase. You can adapt this sample to fit your specific situation by filling in the details where indicated. This letter is designed to help you clearly explain the problem, assert your rights under UK consumer law, and request a suitable solution.
[Your Name]
[Your Address]
[Postcode]
[Email Address]
[Phone Number]
[Date]
[Name of Hire Purchase Company or Retailer]
[Company Address]
[Postcode]
Subject: Complaint About Faulty Goods Bought on Hire Purchase – Request for Resolution
Dear Sir or Madam,
I am writing to formally complain about a product I purchased under a hire purchase agreement from your company. I wish to resolve this matter as soon as possible.
Details of Purchase:
Product: [Insert description of goods, e.g. make, model, serial number]
Date of Purchase: [Insert date]
Hire Purchase Agreement Number: [Insert agreement number, if known]
Nature of the Fault:
Shortly after taking delivery of the goods, I noticed the following problem(s):
[Describe the fault(s) clearly and in detail. For example: “The washing machine does not complete its cycle and displays an error code.”]
[Add any attempts you have made to resolve the issue, e.g. contacting customer service, arranging repairs, etc.]
Consumer Rights:
Under the Consumer Rights Act 2015, goods supplied under a hire purchase agreement must be of satisfactory quality, fit for purpose, and as described. Because the goods are faulty and do not meet these requirements, I am entitled to request a remedy.
Remedy Sought:
Given the circumstances, I am requesting that you [choose one: repair the goods / replace the goods / provide a full refund]. I believe this is a reasonable solution in line with my legal rights.
Deadline for Response:
Please respond to this letter within [insert a reasonable timeframe, e.g. 14 days] from the date above. If I do not receive a satisfactory response, I will consider taking further action to protect my rights.
I have attached copies of my hire purchase agreement, proof of purchase, and any relevant correspondence.
I look forward to your prompt response.
Yours faithfully,
[Your Signature (if sending a printed copy)]
[Your Name]
Practical Tips:
Always keep a copy of your letter and any attachments for your records.
Send your letter by recorded delivery or another trackable method if possible.
Clearly state what you want (repair, replacement, or refund) and give the company a reasonable deadline to resolve the issue.
If you do not receive a satisfactory response, you may wish to seek further advice or consider escalating your complaint.
This template helps you assert your rights confidently and ensures your complaint is set out clearly and professionally. Remember to adapt the letter to reflect your own circumstances and the specific details of your complaint.
What to Do If Your Complaint Is Not Resolved
If your complaint about faulty goods bought on hire purchase is not resolved – either because the seller or finance company does not respond, or they refuse to put things right – you still have several important options to pursue.
1. Escalate Your Complaint
Start by reviewing the consumer service complaints procedure to ensure you have followed all steps required by the business or finance provider. Sometimes, companies have specific escalation processes you must complete before your complaint can be taken further.
2. Contact Consumer Advice Organisations or Trading Standards
If you have not received a satisfactory response, you can seek help from consumer advice organisations. They can offer guidance on your rights under the Consumer Rights Act 2015, which states that goods must be of satisfactory quality, fit for purpose, and as described. Trading Standards can also investigate if the trader is repeatedly failing to meet their obligations.
3. Consider Alternative Dispute Resolution (ADR)
Many disputes can be settled without going to court by using alternative dispute resolution (ADR). ADR includes processes like mediation or arbitration, where an independent third party helps you and the trader reach an agreement. Some ADR schemes are legally binding, and many finance companies or retailers are members of ADR schemes. Check if the business is part of one and how to start the process.
4. Warn the Trader About Court Action
If the issue still isn’t resolved, you may wish to send a formal warning before taking legal action. You can use a letter to warn trader about court action for faulty goods to let the seller or finance company know you are prepared to escalate the matter to court if they do not respond.
5. Take Court Action as a Last Resort
If all else fails, you have the right to pursue your claim in court. For most consumer disputes, this will be through the small claims court. Before starting this process, ensure you have tried other options, as courts expect parties to attempt to resolve disputes first. Court action can be time-consuming and may involve some costs, but it can be an effective way to enforce your legal rights.
6. Keep Detailed Records
Throughout the process, keep copies of all letters, emails, receipts, agreements, and notes from phone calls. Good records will support your case, whether you use ADR or go to court.
By following these steps, you can make sure you have done everything possible to resolve your complaint about faulty goods bought on hire purchase. For more detailed guidance on each stage, explore the linked resources above.
Related Letter Templates and Additional Resources
When dealing with problems related to goods or services, having the right letter template can make a significant difference in resolving your issue efficiently. Below you’ll find a selection of related letter templates and useful resources to help you address different types of consumer complaints, along with guidance on when to use each one.
Related Letter Templates
Letter to complain about faulty goods:
Use this template if you bought goods (not on hire purchase) that turned out to be faulty. It helps you clearly state your rights under the Consumer Rights Act 2015 and request a repair, replacement, or refund from the seller.Letter to complain about faulty goods supplied with a service:
This template is suitable if you received faulty goods as part of a service – for example, a kitchen appliance included in a fitted kitchen installation. It covers your rights under both the Consumer Rights Act 2015 and the Supply of Goods and Services Act 1982.Letter to complain about misdescribed goods including cars bought from a private seller:
Use this template if you discover that goods you purchased – such as a car from a private seller – were misdescribed or do not match the description provided at the time of sale. This can help you seek a remedy under the Misrepresentation Act 1967 or Sale of Goods Act 1979.Letter to complain about non-delivery or late delivery:
Choose this template if your goods have not arrived or were delivered later than agreed. It helps you request delivery by a specific date or claim a refund under the Consumer Contracts Regulations 2013.Letter to say you received goods or services you didn’t ask for:
If you’ve been sent goods or provided with services you did not order, this template helps you assert your rights and request that the trader collects the goods or stops the service, referencing the Consumer Protection from Unfair Trading Regulations 2008.
When to Use Each Template
Hire Purchase Faults: Use the main template on this page if you bought faulty goods on hire purchase, as your rights and who to contact may differ from standard purchases.
Standard Purchases: For goods bought outright (not on hire purchase), use the letter to complain about faulty goods.
Faulty Goods with Services: If the issue involves goods supplied as part of a service, the letter to complain about faulty goods supplied with a service is most appropriate.
Misdescribed Goods: If your complaint relates to items that do not match their description, especially from private sellers, refer to the letter to complain about misdescribed goods including cars bought from a private seller.
Delivery Issues: For problems with goods not arriving or arriving late, use the letter to complain about non-delivery or late delivery.
Unsolicited Goods or Services: If you receive goods or services you didn’t order, the letter to say you received goods or services you didn’t ask for will guide you on next steps.
Additional Legal Information and Support
Understanding your rights is crucial when dealing with faulty goods, especially on hire purchase. For specific information about your rights regarding vehicles, see our guidance on if you bought a faulty car, which covers common issues and steps to take if your car is faulty.
If you need further help, these letter templates and resources can empower you to take action and protect your consumer rights. Consider exploring the templates above or seeking advice from consumer support services if your issue remains unresolved.
