Resolving disputes
Resolving disputes
As with all consumer claims, the ultimate recourse is an action in the civil courts. Additionally, many disputes of this kind will be covered by a form of “alternative dispute resolution” (ADR) which can be a quicker and easier alternative to considering court action. One type is the online dispute resolution systems operated by many online marketplaces. Another is the Financial Ombudsman Service, which can be used for disputes which are fully or partially financed by credit (such as a bank credit card) and for which the total amount paid (price of goods plus delivery charge) is £100 or more. Rather than only deal with the seller, a consumer can refer a case to a relevant ADR. Not all purchases are covered, but many are.
Example
Alternative Dispute resolution
The consumer in the misleading claims example uses a credit card to purchase the TV.
Consumer Rights
All the rights listed under the misleading claims example can be claimed against the seller OR the credit card provider (i.e. a bank or other financial institution) and ultimately the Financial Ombudsman Service can rule on the case.
What can consumer do?
- Instead of taking steps in relation to the seller, the consumer can hold their credit card provider liable under Section 75 of the Consumer Credit Act 1974. The first step is to raise a complaint with the card provider using that company's complaint procedure.
- If the card provider fails to resolve the matter in the prescribed time-scale, the consumer can refer the case to the Financial Ombudsman Service. In addition to actual losses, this can include a claim for compensation for inconvenience.