Consumer Credit Act 1995

F104[Right to proportionate reduction in price or final termination of hire‑purchase agreement

73L

73L.(1) This section applies where—

(a) the hirer has exercised his or her right under section 73I(1)(b) and—

(i) the owner has not completed the repair or the replacement of the goods or, where applicable, has not completed the repair or replacement in accordance with section 73K, or

(ii) the owner has refused to bring the goods into conformity with the hire-purchase agreement in accordance with section 73I(3),

(b) the goods are not in conformity with the hire-purchase agreement at the relevant time and the same or a different lack of conformity of the goods with the agreement becomes apparent despite the owner having attempted to bring the goods into conformity with the agreement,

(c) the goods are not in conformity with the hire-purchase agreement at the relevant time and the lack of conformity of the goods is of such a serious nature as to justify an immediate price reduction or the termination of the hire-purchase agreement, or

(d) the goods are not in conformity with the hire-purchase agreement at the relevant time and the owner has declared, or it is clear from the circumstances, that the owner will not bring the goods into conformity with the hire-purchase agreement within a reasonable time or without significant inconvenience to the hirer.

(2) Subject to subsections (5) and (7), the hirer shall have—

(a) the right to a proportionate reduction in the price in accordance with section 73M, or

(b) subject to subsection (3), the right to exercise the final right to terminate the hire-purchase agreement in accordance with section 73N.

(3) The hirer shall not have the right to exercise the final right to terminate the hire-purchase agreement under subsection (2)(b) if the lack of conformity of the goods with the agreement is only minor.

(4) In case of dispute, it shall be for the owner to show that the lack of conformity of the goods with the agreement is minor.

(5) Where subsection (1)(b) applies, it shall be objectively determined, taking all the circumstances into account (including the matters mentioned in subsection (6)), whether the hirer—

(a) shall have the right specified in paragraph (a) or (b) of subsection (2), or

(b) shall be required to accept a further attempt or attempts by the owner to bring the goods into conformity with the hire-purchase agreement.

(6) The matters referred to in subsection (5) are—

(a) the type and value of the goods,

(b) the nature and significance of the lack of conformity with the hire‑purchase agreement, and

(c) whether the hirer can reasonably be expected to maintain confidence in the ability of the owner to bring the goods into conformity with the hire-purchase agreement, in particular where the same lack of conformity with the agreement appears on more than one occasion.

(7) For the purposes of subsection (1)(c), it shall be objectively determined, having regard to the nature and severity of the lack of conformity with the hire-purchase agreement (including the matters mentioned in subsection (8)), whether the lack of conformity of the goods with the agreement is of such a serious nature as to justify the application of subsection (2).

(8) The matters referred to in subsection (7) are whether the lack of conformity with the hire-purchase agreement is such that—

(a) the hirer cannot maintain confidence in the ability of the owner to bring the goods into conformity,

(b) the ability of the hirer to make normal use of the goods is severely affected and the hirer cannot reasonably be expected to trust that this would be remedied by repair or replacement by the owner.

(9) Where the hirer is entitled to exercise the right conferred by subsection (2)(b) by virtue of some (but not all) of the goods to which the hire-purchase agreement relates not being in conformity with the agreement, the hirer may exercise that right only in relation to—

(a) those goods, and

(b) any other goods that the hirer acquired with the goods that are not in conformity with the agreement, if the hirer cannot reasonably be expected to keep only the goods that are in conformity with the hire-purchase agreement.

(10) In this section, "relevant time" has the same meaning as it has in section 73A.]

Annotations:

Amendments:

F104

Inserted (29.11.2022) by Consumer Rights Act 2022 (37/2022), s. 150(1), S.I. No. 596 of 2022, subject to transitional provision in subs. (2).