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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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We are the importer and supplier of a brand of hot tubs in

Resolved Question:

We are the importer and supplier of a brand of hot tubs in the UK and we have dealers around the country (all separate independent companies in their own right, not owned by ourselves). These dealers purchase the hot tubs from us at trade price and retail the hot tubs to the general public.We have a dealer who two years ago was unable to take payment by debit or credit cards for a short period whilst their terminal was down. They had a customer purchase a hot tub paying 60% to the dealer by BACS and 40% to ourselves by credit card on behalf of the dealer as they were desperate to part pay by credit card. The customer in question is now trying to claim back the entire purchase price using Consumer Credit Act 1974 as they are not happy with the product. The Bank in question has contacted ourselves as we were the ones who took payment by card. However the hot tub was invoiced and supplied by our dealer. Our dealer also took the majority of the payment by BACS.I'd like to know where we stand. Are we jointly liable due to taking the credit card payment on behalf of our dealer. Or is it our dealers liability for supplying the product regardless of payment?Many thanks.
Submitted: 1 year ago.
Category: Law
Expert:  Ash replied 1 year ago.

Hello my name is ***** ***** I will help you with this.
What was the value you processed please?

Customer: replied 1 year ago.
163;5,000 on one credit card and £1,568.80 on a separate credit card. The value of the hot tub itself was over £13,000 in total.
Expert:  Ash replied 1 year ago.

Thank you. Sadly yes you are jointly liable.

Under the Consumer Credit Act 1974 someone can chargeback and dispute a charge. The merchant is liable under the Act.

You are liable for the sums taken on the credit card, but the dealer is responsible for the balance.

It makes no difference whether you took part payment or not.

You would need to sue your dealer to get your money back.

But you are liable for the sums taken as you were the merchant who took payment.

I am sorry if this is not the answer you want and certainly not the one I want to give you, but I have a duty to be honest.

Can I clarify anything for you about this today please?

Customer: replied 1 year ago.
No, that's ok. We can proceed from here. I just needed to know where we stood before drafting a response to the bank.Thanks for your help.
Expert:  Ash replied 1 year ago.

Sorry its not better news. If this answers your question could I invite you to rate my answer before you go today, otherwise the site doesn’t pay me for the time spent with you. Thanks in advance and good luck.

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