ConsumerWiki - Withholding payment letter template

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Your address

Date


Company’s address


Dear Sir

{Insert Type of Contract and Date}

I am writing to notify you of my intention to withhold payment of £____ from the current balance on my account.

On {date} I entered into a contract with ________ for the ________ of ________ The contract price was £____ , which I paid using my ________ Card. Please see enclosed copy of the statement of this account clearly showing this transaction.

{Explain nature of problem (eg defective service/goods)}.

{Explain why matter has not been resolved by the supplier (eg not acknowledging complaint or gone out of business)}.

As the purchase price of the goods/service was over £100, you, as the card issuer, are liable to the same extent as the supplier (section 75 of the Consumer Credit Act). Consequently, as ________ {name of supplier} has not satisfied my claim for breach of contract, I am legally entitled to withhold payments representing the amount of my claim, and you can not charge interest on this amount.

Please find enclosed photocopies of three quotations I have obtained as to the cost of putting matters right. You will see that £____ is the amount of the cheapest.

Please acknowledge receipt of this letter, and send confirmation of your agreement of my witholding £___ from my payment, upon which amount you will not charge interest, until the matter is resolved with the supplier.

Yours faithfully

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