Consumer Hire Remedies
Consumer Rights Act
Right to remedies under sections 73J and 73K
73I. (1) Where goods are not in conformity with the hire-purchase agreement at the relevant time, the hirer shall have the following rights—
(a) the right to exercise the short-term right to terminate the agreement in accordance with section 73J, and
(b) subject to subsections (2) and (3), the right to have the goods brought into conformity with the agreement through repair or replacement in accordance with section 73K.
(2) The hirer may choose between the remedies of repair and replacement of the goods unless the remedy chosen by the hirer—
(a) would be impossible for the owner to carry out, or
(b) compared to the alternative remedy, would impose disproportionate costs on the owner, taking all the circumstances into account, including—
(i) the value that the goods would have if there were no lack of conformity,
(ii) the significance of the lack of conformity, and
(iii) whether the alternative remedy could be provided without significant inconvenience to the hirer.
(3) The owner may refuse to bring the goods into conformity with the hire-purchase agreement if both repair and replacement—
(a) are impossible for the owner to carry out, or
(b) compared to the alternative remedy, would impose disproportionate costs on the owner, taking all the circumstances into account, including those specified in subsection (2)(b)(i) and (ii).
(4) In this section, ‘relevant time’ has the same meaning as it has in section 73A.
Short-term right to terminate hire-purchase agreement
73J. (1) This section applies where the hirer has the short-term right to terminate the hire-purchase agreement under section 73I(1)(a).
(2) The period during which the hirer has the short-term right to terminate the hire-purchase agreement—
(a) begins—
(i) where the hire-purchase agreement requires the owner to install the goods after their delivery or to take any other action to enable the hirer to use the goods, on the day on which the installation or other action is completed, or
(ii) in any other case, at the relevant time,
and
(b) subject to subsection (3), expires 30 days after that day or, as the case may be, the relevant time.
(3) Where goods are of a kind that can reasonably be expected to expire or deteriorate on the expiry of a smaller number of days than the 30 days referred to in paragraph (b) of subsection (2), that paragraph shall apply as if for the reference to 30 days there were substituted a reference to that smaller number of days.
(4) Nothing in subsection (2) prevents a hirer who has the right to terminate a hire-purchase agreement from terminating it before the beginning of the period referred to in that subsection (or that subsection as applied by subsection (3)).
(5) In case of dispute, it shall be for the owner to show that by virtue of subsection (3) the period referred to in subsection (2) is shorter than 30 days.
(6) Where the hirer has the right to terminate a hire-purchase agreement under this section and wishes to exercise that right—
(a) the hirer shall exercise that right in accordance with section 73N, and
(b) the owner shall comply with the obligations in section 73O.
(7) In this section, ‘relevant time’ has the same meaning as it has in section 73A.
Repair or replacement of goods
73K. (1) This section applies where goods are to be brought into conformity with the hire-purchase agreement by repair or replacement.
(2) The owner shall ensure that the repair or replacement of the goods is carried out—
(a) free of charge,
(b) within a reasonable time after being informed by the hirer of the lack of conformity with the agreement, and
(c) without significant inconvenience to the hirer, taking into account the nature of the goods and the purpose for which the hirer requires the goods.
(3) The reasonable time for completing the repair or replacement of the goods under subsection (2)(b) shall correspond to the shortest possible time necessary for completing the repair or replacement and shall be objectively determined having regard to the nature and complexity of the goods, the nature and severity of the lack of conformity and the effort needed to complete the repair or replacement.
(4) The hirer shall make the goods that are to be remedied by repair or replacement available to the owner.
(5) The owner shall take back any goods that have been replaced and any goods that are to be repaired at the owner’s expense.
(6) Subsection (7) applies where—
(a) it is necessary to remove goods in order to repair or replace them, and
(b) the goods were installed in a manner consistent with their nature and purpose before the lack of conformity of the goods with the hire-purchase agreement became apparent.
(7) The owner’s obligation to repair or replace the goods under subsection (2) includes—
(a) the removal of the goods that are not in conformity with the hire-purchase agreement (referred to in this subsection as the ‘non-conforming goods’),
(b) where the non-conforming goods are repaired, the installation of those goods,
(c) where the non-conforming goods are replaced, the installation of the goods that replace the non-conforming goods, and
(d) bearing the costs of any such removal and installation.
(8) The hirer shall not be liable to pay for the normal use of any goods that are replaced during the period prior to their replacement.
(9) In this section, ‘free of charge’ means free of the necessary costs incurred in order to bring goods into conformity with the hire-purchase agreement, particularly the cost of postage, carriage, labour or materials.
Right to proportionate reduction in price or final termination of hire‑purchase agreement
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.
Price reduction
73M. (1) This section applies where the hirer has the right to a price reduction under section 73L(2)(a).
(2) The right of the hirer under this section is the right—
(a) to require the owner to reduce in accordance with subsection (3) the price the hirer is required to pay under the hire-purchase agreement, or
(b) to receive from the owner a reimbursement of the price paid by the hirer in excess of the amount of the reduction applicable under subsection (3).
(3) The reduction of the price shall be proportionate to the decrease in the value of the goods received by the hirer compared with the value that the goods would have if they were in conformity with the hire-purchase agreement.
(4) Where the hirer has the right to reimbursement under subsection (2)(b), the owner shall reimburse the hirer in accordance with section 73P.
(5) In a hire-purchase agreement where the hirer transfers the ownership of goods to the owner in full or part payment of the price, the right of the hirer to a price reduction shall not apply if—
(a) no agreed monetary value was ascribed by the parties to the goods to be transferred by the hirer at the time the hire-purchase agreement was concluded, or
(b) the goods which the hirer has transferred, or is required to transfer, under the hire-purchase agreement cannot be divided up so as to enable the owner to receive or retain only the reduced price.
Obligations of hirer in event of termination of hire-purchase agreement
73N. (1) Where the hirer exercises the right to terminate a hire-purchase agreement under section 73B(3), the short-term right to terminate a hire-purchase agreement under section 73I(1)(a) or the final right to terminate a hire-purchase agreement under section 73L(2)(b), the hirer shall—
(a) do so by means of a statement to the owner expressing the decision to terminate the hire-purchase agreement, and
(b) return any goods or materials delivered under the hire-purchase agreement to the owner at the owner’s expense.
(2) A hirer who fails to comply with the obligation to return any goods or materials in accordance with subsection (1) shall be liable in damages for any loss or damage suffered by the owner as a result of that failure.
Obligations of owner where hire-purchase agreement terminated
73O. (1) This section applies where the hirer exercises—
(a) the right to terminate a hire-purchase agreement under section 73B(3),
(b) the short-term right to terminate a hire-purchase agreement under section 73I(1)(a), or
(c) the final right to terminate a hire-purchase agreement under section 73L(2)(b).
(2) The owner shall upon receipt of the goods or, if the owner so chooses, of evidence provided by the hirer of having sent back the goods, reimburse the hirer in accordance with section 73P for—
(a) the price paid for the goods, and
(b) any costs incurred by the hirer in returning the goods to the owner.
(3) If the hirer terminates a hire-purchase agreement before the price payable for the goods under the agreement has been paid in full, the reimbursement to which the hirer is entitled under subsection (2) applies only to the part of the price which has been paid by the hirer.
(4) Where the hirer exercises the final right to terminate the hire-purchase agreement under section 73L(2)(b), the reimbursement of the price to which the hirer is entitled under subsection (2) may be reduced in proportion to any depreciation in the value of the goods in excess of the depreciation that could reasonably be expected to result from their normal use.
(5) In case of dispute as to the application of subsection (4), it shall be for the owner to show that the depreciation in the value of the goods exceeded that which could reasonably be expected to result from their normal use.
(6) Subject to subsection (7), in a hire-purchase agreement where the hirer transfers the ownership of goods to the owner in full or part payment of the price, the owner shall—
(a) return those goods to the hirer, and
(b) reimburse the hirer in accordance with section 73P for any part of the price paid by the hirer.
(7) If the owner cannot return goods to the hirer in accordance with subsection (6), the owner shall reimburse the hirer—
(a) to the agreed monetary value ascribed to the goods by the parties at the time the hire-purchase agreement was concluded, or
(b) where no such monetary value was agreed, to a reasonable market value for the goods at the time the hire-purchase agreement was concluded.
Time limits and means of reimbursement by owner
73P. (1) This section applies where reimbursement is owed to the hirer by the owner by virtue of—
(a) a price reduction under section 73M,
(b) the exercise of the right to terminate the hire-purchase agreement under section 73B(3),
(c) the exercise of the short-term right to terminate the hire-purchase agreement under section 73I(1)(a), or
(d) the exercise of the final right to terminate the hire-purchase agreement under section 73L(2)(b).
(2) The owner shall reimburse the hirer without undue delay and in any event not later than 14 days after the day on which the owner receives—
(a) the goods back, or
(b) if the owner so chooses, evidence provided by the hirer of having returned the goods.
(3) The owner shall reimburse the hirer using the same means of payment as the hirer used to pay for the goods unless—
(a) the hirer expressly agrees otherwise, and
(b) the hirer does not incur any fees as a result of reimbursement by the means otherwise agreed.
(4) The owner shall reimburse the hirer without the imposition of any fee on the hirer in respect of the reimbursement.
(5) An owner who fails to comply with the obligation to reimburse the hirer in accordance with this section shall be liable in damages for any loss or damage suffered by the hirer as a result of that failure.