Money Problem: 'My washing machine has eaten £1,000 of clothes'

Every week, the Money team answers a reader's financial problem or consumer dispute - you can email yours to moneyblog@sky.uk. Today's is...

I have a Grundig washer/dryer, which I've owned from new. Around two years into its three-year warranty, the machine failed, burning and shrivelling a full load of clothes. This was fixed under warranty. The engineer was advised the fault was with a thermostat and that the machine was tested and all good to use again. To my shock, the machine burnt and shrivelled the next load of clothes too. A second engineer visited and said the fault was due to the fascia sticking, meaning buttons were being pressed during the cycle through vibrations. He said it was fixed, checked for no further faults, tested and good to go. Not long after, you guessed it... the machine burnt and shrivelled a load of clothes again. The engineer took the machine apart and found faulty wiring within the unit, saying it was a miracle the machine hadn't faulted sooner. Only the third engineer took the machine apart in full to inspect all the route causes, so all this was avoidable. I have now had £1,000 of clothes and bedding damaged beyond repair, all as a direct result of a faulty machine under warranty. I have called Grundig more than a dozen times, never had a manager call-back as promised and have had no compensation.

Benji, Peterborough

Money Blog editor Jimmy Rice takes a look...

Hi Benji. You and I have exchanged many emails over the past few months as I've sought answers on your behalf from Grundig (via its owner Beko), a process I've found pretty frustrating myself.

Beko told me the delay in finding you a resolution was partly down to their merger process and integrating systems at Hotpoint and Beko. It seems evidence you provided could no longer be located.

The spokesman said the company was not making excuses - it was sorry and would now get back in touch with you to find a solution.

Since those first emails in mid-November, you heard from the Grundig customer service team, which asked you for photos of the damaged clothes.

You sent those the same day - you showed me the emails. Yet Beko kept insisting it hadn't received anything. Long story short, the company's email infrastructure seems unable to cope with basic tasks such as delivery of a photo, even via a link. We finally got round this when the press officer I'd been talking to agreed I could send the photos to his personal email address.

Here's one of them...

After receiving the photos, Grundig customer services sent you an email which you forwarded to me. It read...

"Having carefully considered the information available, we note that heavy creasing in clothing is not a permanent condition and can commonly be rectified through several processes, including professional dry cleaning. Based on the images provided, the items do not appear to be structurally compromised by the creasing observed, and the decorative transfers and materials appear free from defect."

They offered you what they described as a goodwill gesture of £250 "as a contribution towards the professional rectification of the creasing identified".

You wrote back...

This is clearly inaccurate. The clothes were burnt in the wash, ruining lettering and logos, and wholly altering the fabric beyond repair. Others were discoloured. There was no amount of ironing, pressing or cleaning that could return the clothes to their original state. Whilst I appreciate you making an offer, it is far below the value of the damage caused and the amount I am entitled to claim.

You counter to their offer was:

• Damage costs: £968
• Machine refund: £529
• Total claim: £1,497

That's where we are now, with Beko telling me "we remain in dialogue with Mr Deane to resolve his claim".

They have told me your claim for the washing machine has been rejected as it is three years old, so outside the two-year manufacturer warranty period.

That, as regular readers will know, is not a sustainable position give the Consumer Rights Act gives you an implied warrant for up to six years.

So what can you do?

For this I spoke to consumer disputes experts Scott Dixon.

"You could continue to pursue Grundig and demand a remedy, including full compensation for the ruined clothes and bedding," he said.

"Section 49 of the Consumer Rights Act 2015 states that a trader must perform the service with reasonable care and skill. Grundig have clearly failed this test."

If this doesn't work, he suggests switching your attention from the manufacturer to the retailer.

"Go back to the retailer and say they are in 'breach of contract' under the Consumer Rights Act 2015 for selling you a faulty washer dryer."

Because you bought the machine more than six months ago, the onus would be on you to prove the goods had inherent faults at the point of purchase.

"An independent report from a reputable professional in that field would suffice as evidence," said Dixon.

"And this isn't necessary in your case as the manufacturer has confirmed it's a manufacturer's fault."

Dixon went on: "Put your complaint in writing with all evidence clearly stating the fault, a timeline, evidence of failed repairs and receipts or proof of purchase for the product and your losses.

"The remedy would be a refund and compensation for the ruined bedding and clothing, although they are entitled to make a 'fair use' deduction for the time you have owned it."

Losses

There are two types of losses in cases like this

1. Direct loss

These are losses that naturally result from a breach or could reasonably have been foreseeable at the time of purchase.

"In your case, the ruined clothing and bedding are clearly a direct and foreseeable loss caused by the faulty washer dryer," said Dixon.

"Grundig has confirmed the faults were inherent when you bought the defective appliance, so you are entitled to be compensated for these losses."

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2. Indirect loss

These are losses that occur as a knock-on effect of the breach, rather than directly from it. They are only recoverable if the loss was reasonably foreseeable at the time of the contract, meaning the retailer knew, or ought to have known, that you would incur such losses.

"Other issues, such as time spent trying to resolve your complaint or dealing with poor customer service, are usually dealt with by a goodwill gesture," said Dixon.

Going to court

If all the above fails, Dixon says you could take your case against the retailer to the small claims court if it is in England, or follow the simple procedure in Scotland.

"Although you can technically take Grundig to court for breaching the terms and conditions of the warranty, your strongest legal rights are against the retailer under the Consumer Rights Act 2015 because that is who your contract is with," he said.

"Before you file a claim, send screenshots of the draft court papers setting your case out and demanding a refund within seven days. Tell the firm that if they fail to do so, you will lodge a claim in the small claims court," said Dixon, adding that this often does the trick without having to follow through on the threat.

One alternative route

"You should always pay by credit card if possible, as this gives you additional free protection and holds the card provider jointly liable under Section 75 of the Consumer Credit Act 1974 for purchases over £100 and up to £30,000 if there has been a breach of contract or misrepresentation," Dixon said.

This feature is not intended as financial advice - the aim is to give an overview of the things you should think about. Submit your dilemma or consumer dispute by emailing moneyblog@sky.uk with the subject line "Money Problem".