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MSE News: 'I got £23k back under Section 75 after paying just £200 on credit card'
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Former_MSE_Paloma
Posts: 531 Forumite
in Credit cards
A savvy couple avoided losing almost £25,000 of their retirement savings after following MSE’s guidance on Section 75
Read the full story:
'I got £23k back under Section 75 after paying just £200 on credit card'
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'I got £23k back under Section 75 after paying just £200 on credit card'
Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
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I feel sorry for Tesco Personal Finance...
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Then I feel sorry for the poorest people as well that (again) pay for the insurance (nonsensical technicality in fact, possible in UK only) that richer people benefit from for free.0
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Then I feel sorry for the poorest people as well that (again) pay for the insurance (nonsensical technicality in fact, possible in UK only) that richer people benefit from for free.
Hmm - I could agree with you that section 75 seems to give the consumer too much insurance in a case like this.
However I can't agree that Tesco should be allowed to wriggle out of the commitment by trying to argue that the credit card payment somehow relatred to a different transaction than the kitchen purchase.
Thinking further though, it would seem to give a retailler the chance to say 'pay me £100 on a credit card and then pay the balance to my company by cheque and then as a purchaser you will be insured against the company going bust' which would make it very difficult for the credit card company to charge the retailler correctly for the service they are providing if they are effectively guarenteeing up to 29.9k of additional expenditure made to a different (but linked) entity - after all the card company whilst providing merchant services to the individual might not have been willing to do so for the company.....I think....0 -
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I could have paid for my last car by credit card, but of course the dealer wanted a credit card surcharge of something like 2%. Let us say the car was £10k, 2% is £200.
To pay £23k by credit card, the surcharge would have been roughly £400, which would ultimately go to TESCO Finance. For receiving £400, it is entirely fair for TESCO to underwrite this deal like an insurance case, which spreads the risk across many deals, most of which go through without incident.
In this particular case, the couple claiming compensation wanted to save themselves the £400 surcharge, by paying a token £200, which incurs £4 in surcharge. If an insurance company was assessing this claim, they would say the couple paid the premium for a £200 loss, not £23k.0 -
Agree with the general sentiment here. Tesco are unfairly £20k+ out of pocket, and made out to be the bad guys by MSE to boot.
And yes, it opens up a world of loopholes. Sounds like it's the law that needs changing if anything.0 -
If the chain hadn't gone bust and a credit card company paid out under section 75 for some other reason, I assume they chase the retailer for the money? Must be a long and expensive process. Or they might sell the debt on for someone else to manage?
Would be interested to know the details if anyone knows. Don't imagine they can set off future card payments at the retailer.0 -
Agreed. This is a loophole that drives up the costs for everyone.
I'm happy they got their money back, but they should have been treated as creditors of an insolvency. They might not have got much back, but that's life.
gav
for crying out loud, people love enough owing and using a credit card, when they sign up for one they know FULL WELL what the interest rates are, if they don't like it they should not apply for one, why should anyone feel sorry for those who take out credit cards and do not repay them in full every month?
don't get me wrong I am one of them! I have had MANY credit cards which were not paid in full at the end of the month, I have paid HUNDREDS of pounds in interest, so this woman got my money too in essence BUT I am all for this, she deserves it back down to the last penny, if section 75 exists that is it, it is not for us to feel sorry or anything else, it's there and thank goodness it's there, I'd be DEVASTATED if I lost all that money and no I would not want 'some' of it back, I'd want all of it back!
well done to this woman for using her brains and knowledge she acquired from here0 -
I think the bigger question here is, why are they paying out £23000 for a kitchen.
Was it gold plated!!The more I live, the more I learn.
The more I learn, the more I grow.
The more I grow, the more I see.
The more I see, the more I know.
The more I know, the more I see,
How little I know.!!
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