Your Short Term Loan: What Happens When the Goods Go Bad
There are many different ways of paying for goods and if you buy a product using some form of finance agreement then you need to be aware that you have different rights depending on what type of credit agreement you signed.
If you have used a short term loan to finance the purchase of an item that subsequently turns out to faulty, defective, or simply not fit for the purpose it was intended, then you have certain rights under consumer law to get something done about it.
When there is a problem
If something goes amiss with a transaction and the goods you purchased using finance turn out to be bad and you want a refund, repair or replacement, your first course of action is to contact the trader in question to try and sort of the problem directly with them.
If you have use a short term loan, then you will have agreed a repayment date and the money will be collected from your bank to repay the loan as scheduled. It should be remembered that the lender is not responsible for any issues or problems you are having with the goods that you have bought and you should not cancel the repayment as this will probably cost you extra money in additional interest and charges.
If you put the loan directly into your bank account and paid for the goods using your debit card then you might be able to get a refund from your debit card provider if they belong to a recognised Chargeback scheme.
Know your rights
It can be quite a daunting task if you are trying to get your money back or get some positive action taken by the trader so that you can have your faulty goods replaced or repaired and sometimes even harder to get your money back.
It is always a good idea to find out where you stand legally before you start a more formal complaint process but your first action should be to speak to the trader directly and see if they are willing to find a way of resolving the problems you are having and work with you to put it right.
Making a complaint
If you are unable to resolve your problem amicably then the next step would be to make a complaint and the person who you direct your concerns to will depend on the size and structure of the business that you are dealing with.
If it is a larger store then they may have a customer services manager or a specific department that you should write to with your complaint, if the problem is with a small business then you should direct your complain to the person you dealt with originally.
If you are struggling to get your problem resolved then you might want to consider getting some help from your local Citizens Advice Bureau, as they will have a working knowledge of the relevant consumer laws and their services are free to use.
How you originally financed your purchase does make a difference to how you go about getting your money back or the goods replaced but the one thing you should remember if you used a short term loan, is that you should still arrange to repay the loan on time whilst you are trying to resolve the problem.
Peter Davis has had a long finance career. After years of experience crunching numbers, he uses his insight to write about making smart money decisions.