The Consumer Credit Act of 1987
United Kingdom law offers consumers protection against purchasing defective goods. The Consumer Credit Act of 1987 added to an earlier law regarding credit transactions to ensure that customers were not stuck with defective goods that cost more than 100 pounds. Under this law, creditors must refund the customer's money if the merchant refuses to do so or face a possible lawsuit.
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Right to Refund
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The Consumer Credit Act of 1987 gives British citizens the right to a refund from either the merchant or the credit card company if they are dissatisfied with a purchase costing between 100 and 30,000 pounds. The debtor must first request a refund from the merchant. If the merchant refuses to give the customer the refund, he then disputes the charge with his credit card company.
Purpose
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The purpose of the Consumer Credit Act of 1987 is to protect customers from being stuck with defective merchandise. It provides an additional layer of protection for consumers against merchants who refuse to issue refunds or otherwise correct a problem with merchandise the customer purchases from them. In addition, customers can hold merchants and creditors liable for product defects if the situation is not resolved via refund.
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Consumer Protection Act
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The Consumer Credit Act of 1987 is part of a larger act, the Consumer Protection Act of 1987. This act protects consumers from unsafe or defective products and requires merchants to make prices clear. Under this act, merchants cannot list one price on the shelf and charge a different price at the cash register, as this behavior misleads customers about the true price of an item. Magazine and newspaper publishers are liable for misleading prices if they publish advertisements that they know to contain false prices.
Consumer Credit Act 1974
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The Consumer Credit Act of 1987 augmented an earlier act, passed in 1974. The earlier consumer credit act held creditors liable for purchases of more than 1,000 pounds; if an item costing more than this amount was defective, customers could recover their loss from the creditor or sue him along with the manufacturer if the creditor did not reimburse the customer for the loss. The Consumer Credit Act of 1987 lowered the minimum price that creditors could be liable for to100 pounds.
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