Goods bought on finance template
Introduction to letter on Supply of Goods (Implied Terms) Act 1973 – Finance /
Hire Purchase Agreement
Supply of Goods (Implied Terms) Act 1973 – Finance / Hire Purchase
Agreement
Where goods are bought under a Hire Purchase agreement, the contract is governed by
the Supply of Goods (Implied Terms) Act 1973. Your rights are against the credit
provider rather than the trader who supplied the goods.
The Act states that all goods supplied by a trader to a consumer must be of a
satisfactory quality, fit for purpose made known and as described. If they are not, you
may have rights to claim ‘damages’ from the finance company i.e. the cost of having the
faults repaired, or for the finance company to arrange repairs and cover the cost.
Letter generator instructions
There is a link to the letter generator at the bottom of these notes on using the
application.
The letter generator is suitable for most situations but may not suit your specific
circumstances. If you require more detailed advice and guidance, please call Citizens
Advice consumer service on 08454 04 05 06.
Keeping your records
We recommend sending letters by recorded delivery so you have proof that you have
sent the letter.
It is advisable that you keep a copy of the letter for your own records.
If you've bought something on a hire purchase agreement, your contract is governed by
the Supply of Goods (Implied Terms) Act 1973. If something is wrong with the goods,
you will need to take action against the credit provider rather than the trader who
supplied you with the goods.
The Act says that all goods supplied to you must be:



of satisfactory quality
fit for purpose
match their description.
If they're not, you may have rights to make a claim against the finance company. For
example, they may cover the cost of having the fault repaired, arrange for repairs to be
carried out and paid for or offer you a full refund.
This template is to be used for guidance and may not suit your specific situation.
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Letter Example:
Naresh Arun
106 High Road
Llanelli
Carmarthenshire
Wales
PC1 2MA
1 High Road
Llanelli
Carmarthenshire
Wales
PC2 3MA
10 July 20xx
Dear Sir or Madam,
Account No: 12345678
Supply of Goods (Implied Terms) Act 1973 (as amended)
On 10/07/20xx I entered into a Hire Purchase agreement with you for the following:
An all in one printer from Errol's Electrics.
I now have a problem with the goods:
The printer turns off after five minutes of use and won't switch on again for half an hour.
I went back to the shop and they refused to replace it.
I understand that under the above legislation, it is your responsibility to resolve the
matter and would therefore ask that this is done within the next 14 days.
Yours faithfully
Naresh Arun
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