Section 75 1974 Consumer Credit Act - Consqequential Loss Claim

dazbyd · 18 November 2008 at 12:41PM

Morning Everybody ...

Thanks for taking the time to read ...

I purchased flights earlier this year with the now defunct XL Airlines Group, and paid £646.00 (x4 tickets) with my Nationwide Credit Card - these were flights booked via XL website direct.

I placed a claim with Nationwide and they duly refunded the ablove amount in full

As a result of XL being placed in administration I needed to book alternative flights, which I did with FlyThomasCook - at a total cost of £816.00 (x4 tickets) - which meant I was £170.00 out of pocket as a result of XL's collapse.

I have contacted Nationwide and requested a refund of the additional £170.00 as consequential loss.

They have replied advising that they will not refund this amount and the only time they would consider doing so is when someone is stranded oversea's.

Can anyone please advise me if they are correct or point me in the right direction for extra information.

I have trolled through numerous websites but cannot find anything specific.

Thanks again for any help offered.

Cheers

Daz

normanmark · 18 November 2008 at 12:47PM

Yeah they're correct, its not their fault the prices have gone up. They've refunded you the original amount of what you paid, they don't cover the costs of getting you over there as well.

dazbyd · 18 November 2008 at 1:07PM

... The law allows you to claim for ‘consequential losses’ arising from the problem. In other words, if what went wrong forced you to shell out, the credit card company is liable just like the retailer would be.

Copied from Martin's page on Section 75 of the Comsumer Credit act.

normanmark · 18 November 2008 at 1:13PM

An example of Consequential losses would be if you was abroad and purchased a return ticket home as the existing airline who you bought your return ticket initially went bust.

The only 'need' for the booking of new flights is more than likely a hotel booking. Had you booked the two together with XL then you would of got both back. As they're not connected i don't see Nationwide accepting you booking new flights as a consequential loss, prices change & this is no fault of the CC company.

RabbitMad · 18 November 2008 at 1:27PM

Intersting - I am aware of people who have used the OP's argument and got the CC company to pay up for the cost of the new flights. After all the OP had a contract with XL to fly Him / Her to wherever and as they paid with their CC the CC company are jointly and severally liable for this contract.

However has the OP blown his (or her) chances by getting the refund? Isn't getting the refund equivalent of saying I want out of this contract and the CC comp saying OK - here is a full refund? I think if his (or her) claim hed been initally for the cost of the new flights they should have been successful?

dazbyd · 18 November 2008 at 1:31PM

... many thanks for your replys ... I managed to find the below on another page within MSE and is from 'Consumer Direct' ...

‘ Your rights against XL would lie under the Supply of Goods and Services Act (1982). You would be able to suggest that the trader is in breach of contract as you had not received the full service for which you paid. In this case, you would be entitled to pursue a refund of the service that you had not used. The law also allows you to claim reimbursement for reasonable and prove-able out-of-pocket expenses incurred as a result of the breach of contract; this means that you would be able to request compensation for the difference in cost between the original and replacement flights you have had to purchase. Any breach of contract should be rectified within a reasonable time, and with minimal inconvenience to you.’

SteveGrr · 19 November 2008 at 12:01PM

I'm in an almost identical situation - XL flights refunded but forced to buy more expensive flights with Thomas Cook. I do believe it is a fair consequential loss because the second flights were more expensive as they were booked later - as soon as I heard XL had ceased trading, but several months after I booked the original flights.

I would be interested if anyone has first hand, rather than anecdotal, experience of claiming the consequential loss from their CC. Particularly if it was a First Direct CC.

Thanks, Steve

dazbyd · 19 November 2008 at 5:28PM

... awaiting an update from Nationwide ... and will post as soon as

dazbyd · 27 November 2008 at 2:28PM

... update ...

Nationwide have rejected my claim for consequential loss :mad: :mad:

Financial Services Ombudsman have said I do have a claim for consequential loss and are taking the claim up on my behalf :T

Will post updates as when.

dazbyd · 12 April 2009 at 8:46AM

Good News Update :T:T

After Nationwide refusing my claim for consequential loss, the FSO took my case up and found in my favour - Nationwide have now refunded £170 !!

Good news for me and good news for anyone else in a similar position !!

:beer::beer:

never-in-doubt · 12 April 2009 at 8:51AM

dazbyd wrote: »

Good News Update :T:T

After Nationwide refusing my claim for consequential loss, the FSO took my case up and found in my favour - Nationwide have now refunded £170 !!

Good news for me and good news for anyone else in a similar position !!

:beer::beer:

Excellent news - thanks for updates and remember the beers are on you! :beer:

Section 75 1974 Consumer Credit Act - Consqequential Loss Claim

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