We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Section 75 question

I had my car in for repairs a couple of weeks ago with a large well known dealership. I got the car back and it was fine for one day and then showed the same symptoms as it was before it went in to get 'fixed'.
I had paid the bill (over £500 ) by credit card so I phoned the credit card company and told them not to pay the car dealership. They said that the money had already been paid to them but they would mark the payment as ' disputed'.
In a recent telephone conversation, the credit card company have told me that 'disputes with car garages are notoriously difficult to resolve'.
Having heard this I don't hold out much hope of getting the money back through the car dealership.
Can I claim the money from the credit card company under Section 75?

John

Comments

  • normanmark
    normanmark Posts: 4,156 Forumite
    Have you gone back to the car dealership? What have they said about it?
  • John,

    Yes, you're covered technically, but you need to satisfy the card company that you've taken all reasonable steps to sort it out with the garage first. Even then it's difficult to get the bank to pay out, as I've found with Halifax. As I posted elsewhere on the site, even when I got a CCJ against the garage Halifax are still currently insisting I send the bailiffs in before they'll take action.

    Best course of action is to go back to the garage and ask that they rectify it for nothing; if all other avenues are exhausted then issue a county court summons against both the garage and the credit card company.

    Good luck
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    TinMan wrote: »
    Even then it's difficult to get the bank to pay out, as I've found with Halifax. As I posted elsewhere on the site, even when I got a CCJ against the garage Halifax are still currently insisting I send the bailiffs in before they'll take action.
    You may find this Financial Ombudsman information useful...
    We often encounter some common misunderstandings when assessing these cases. The first is the belief among some lenders that consumers can only claim against them after they have first sued the provider of the goods or services. In fact, no such requirement exists and consumers can choose which party to claim against.

    Where consumers come to us to check the position, we can point out the lender's mistake. But of course we cannot know how many consumers take the lender's assertion at face value and then spend time and effort trying to pursue a trader who may prove difficult to trace. If it seems to us that the lender has misled the consumer about the provisions of Section 75, and this has caused the consumer unnecessary expense or inconvenience, then this is likely to be reflected in any award we may make.

    http://www.financial-ombudsman.org.uk/publications/ombudsman-news/62/62-consumer-credit.htm
  • That's fantastic information, thankyou! I have threatened Halifax that the ombudsman is my next port of call; it is great to know that they specifically quote these examples. I hadn't researched the ombudsman site but I will now. Top stuff.
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    You'll generally need to go through the 8-week process with Halifax first. That's why it's important to 'formalise' things early on in writing, making it very clear their refusal to help is the basis for your complaint.

    You tell them (in writing) that you fully intend to take the matter to the Financial Ombudsman if you don't get a favourable resolution, or no deadlock letter is sent, within the requisite 8-week period.

    You might want to mention specifically the above Ombudsman's stance on section 75, and also that it would be better for all concerned if the matter was resolved before Halifax incur the £450 case fee and any "award" the FOS may make against them for 'distress and inconvenience' (look this one up on the FOS website).
  • normanmark wrote: »
    Have you gone back to the car dealership? What have they said about it?
    I took it back to the garage and they looked at it again and said that it needed something else done to it and that it would cost me another £120.
    The part that 'needed replacing' was already replaced last year. I asked what the guarantee on these parts were and I was told three months. I told the guy to put the old part back in and I picked the car up from the garage.
    My car is currently in another garage and the mechanic there has told me that the origonal garage has basically been doing the same things to the car ( at my expense) for two years without getting to the real problem.
    It looks like its going to cost me a lot of money to get the car back on the road.
    John
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.3K Banking & Borrowing
  • 253.7K Reduce Debt & Boost Income
  • 454.4K Spending & Discounts
  • 245.3K Work, Benefits & Business
  • 601.1K Mortgages, Homes & Bills
  • 177.6K Life & Family
  • 259.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.