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Alice H
Alice H, Solicitor/Partner
Category: Law
Satisfied Customers: 2850
Experience:  Partner in national law firm
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I have been offered a settlement from a finance company for

Customer Question

I have been offered a settlement from a finance company for a car I bought from a garage. Could I accept the offer and still take up a small claims case against the garage. I have not been treated fairly but financially I need to take the settlement up with finance company
Submitted: 4 years ago.
Category: Law
Expert:  Alice H replied 4 years ago.
My name is Alex Hughes and I'm happy to help with your question today.

Could you please clarify what your claim is for?
Customer: replied 4 years ago.
A car that was sold to me. But not fit for purpose
Expert:  Alice H replied 4 years ago.

Is the finance company paying you the price of the car?

What else do you wish to claim from the garage?
Customer: replied 4 years ago.
The finance company is settling the finance .i want my part exchange monies from the garage
Expert:  Alice H replied 4 years ago.

In this type of case both the finance company AND garage are liable for your losses arising from a breach of contract.

The finance company is liable under s.75 Consumer Credit Act 1974 and the garage is liable under the Sale of Goods Act 1979.

Even after thr finance company settles their part of the claim; you can pursue the garage for additional losses.

However, just to make sure there's no doubt about your position, you should make ot clear that you are not accepting the finance company offer in full and final settlement.

You should accept the settlement on the basis thay the finance company has discharged its liability under s.75 but that you will pursue the balance owing from the garage.

If the garage refuses to cover the price of the part exchange sue them in the County Court after giving them say a maximum of 14 days.

Do not forget to claim interest, any travel expenses, car hire etc that you have incurred as a result of this problem.

There is no harm in claiming as much as you can reasonably justify.

Hope this helps.