Broken laptop on a hire purchase agreement

  merciarich 21:12 13 Mar 2008

Hey guys

Not too sure what to do about this one. I have tried all the avenues I can think of, just looking for a different slant on things, maybe you guys could come up with some suggestions?

Purchased a laptop in February 2006, an Iqon "QOM 8130". It was one of those tax-free schemes that are done through the employer, you get a laptop tax free and the money is taken out of your wages. As part of the scheme, the laptop came with a 3 year warranty.

The money is still coming from the wages, about £20 per month over a 3 year period.

Last week, the laptop stopped working. I have isolated it down to the power supply within the laptop. The power lead itself is fine, but when conected to the laptop.... nothing happens.

I contacted OneCall, who operate the scheme on behalf of the employers. They said to contact Iqon. We contacted Iqon, who unfortunately have gone into liquidation and have said we need to pay a local company to do the repair... which could be costly as there is a possibility it could be the motherboard.

So I contacted OneCall again and explained that Iqon went bust. They then said to contact our employer, who dont actually have anything to do with it apart from taking the money from our wage. The scheme itself is operated by OneCall.

After checking the Terms and conditions, it says about the warranty and states that should the warranty be void for some reason, or statutory rights are not affected. It also states that we are covered under the Supply of Goods Act and the Supply of Goods and Services Act, not to mention the Consumer Credit Act.

ALSO.... the laptop is still classed as their property as it is a Hire Agreement. We pay a small £50 fee at the end of the 3 years if we wish to keep the equipment, its called a "Release Fee"

So we have a laptop, which is theirs, which has broken, the company involved blames Iqon and our employer and refuses to acknowledge the warranty or the statutory rights.

Obviously I have tried the obvious things and have tried to get Iqon and OneCall to do something about it, but not too sure what I can do next.

Any ideas welcomed :)

  merciarich 21:22 13 Mar 2008

Forgot to add:

We have taken the laptop into a local repair shop to get the repair evaluated.

I was thinking of sending a copy of the estimate to OneCall to see what they say

Other than this, I am stuck for ideas

  wjrt 22:15 13 Mar 2008

click here
see what this agency say

  beeuuem 23:36 13 Mar 2008

If it is a hire agreement the finance company is, as they say, jointly liable for the goods under Section 75 of the Consumer Credit Act. this means that they are as liable as the supplier for all the conditions of sale and must ensure that the warrranty is upheld.
See click here and look at the section on equal liability.

  merciarich 02:17 14 Mar 2008

Thanks for the website links

I read interest the OFT site beeuuem

I will update here as to what happens over the next day or two

  spuds 12:35 14 Mar 2008

The problem with those special laptop and computer agreements, is the tax incentives that were offered, that could perhaps change the ownership to a leased arrangement until final arrangement fee is paid. This in itself can lead to a very complex situation, something that the layperson may find difficult to fully understand.

In theory section 75 of the Consumer Credit Act may seem to apply, but perhaps not necessarily so, due to 'business' implications and status category. Personally, I would email Consumer Direct (wjrt link), and get them to reply in writing, on how you should tackle the matter. Alternative is your local Trading Standards (which Consumer Direct, will refer you to) or local Consumer Advice Centre.

  merciarich 15:38 15 Mar 2008


Thanks - appreciated the comments you made.

Will update on Monday as to what has happened

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