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  • FIRST POST
    • hennaq_1
    • By hennaq_1 28th Sep 17, 10:29 AM
    • 19Posts
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    hennaq_1
    SECTION 75 Claim
    • #1
    • 28th Sep 17, 10:29 AM
    SECTION 75 Claim 28th Sep 17 at 10:29 AM
    My husband and I are going through a really tough time. We employed a building company to do an extension and other works on our homes. We had a contract drawn up and signed.

    We paid £400 on a credit card and the rest of the deposit amount of £16800 by bank transfer to the companies business account. Within a week of paying the deposit the director has turned off his phone, no longer is responding to emails and has run off with our money. He knew what he was doing and has done this to over 40 people. We have been in touch with a few of the customers. many who paid without using a credit card and just a bank transfer payment.

    We were only recently informed by the architectural company that were subcontracted to do the drawings that they have not been paid either and they have suggested to take legal action as they have been told by one of the building company employees that the director is going to put his company into administration. None of the customers have received this news from the company and on companies house and the gazette the company is still active.

    I was wondering if my husband and I are protected under section 75. The full purchase amount for the works is £34k, (as listed in the contract) however I've noticed section 75 will only cover you up to a purchase price of £30k. We only paid a deposit of £17,200. Are we able to claim this money back from the banks? We also have proof of receipts from the company for the payments made.
Page 1
    • zx81
    • By zx81 28th Sep 17, 10:43 AM
    • 13,687 Posts
    • 14,157 Thanks
    zx81
    • #2
    • 28th Sep 17, 10:43 AM
    • #2
    • 28th Sep 17, 10:43 AM
    I think the £30k limit will prevent any section 75 claim, unless you could argue that there are separate purchases within the full amount.

    However, that sounds unlikely.

    You could try the chargeback route - but I would move quickly.
    • chattychappy
    • By chattychappy 28th Sep 17, 10:52 AM
    • 6,364 Posts
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    chattychappy
    • #3
    • 28th Sep 17, 10:52 AM
    • #3
    • 28th Sep 17, 10:52 AM
    Sadly, I agree with zx81. And of course, chargeback would only get you the £400 back.

    As he suggests, it would be worth looking carefully at the contract. The £100 to £30K thing refers to "item price". If, in anyway, the contract is broken down into separate chunks, you might have a chance. Seems unlikely though.
    • hennaq_1
    • By hennaq_1 28th Sep 17, 11:11 AM
    • 19 Posts
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    hennaq_1
    • #4
    • 28th Sep 17, 11:11 AM
    • #4
    • 28th Sep 17, 11:11 AM
    The contract is broken down by works that will be taking place

    There is a separate price for the kitchen and extension.
    • hennaq_1
    • By hennaq_1 28th Sep 17, 11:15 AM
    • 19 Posts
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    hennaq_1
    • #5
    • 28th Sep 17, 11:15 AM
    • #5
    • 28th Sep 17, 11:15 AM
    The contract is broken down by works that will be taking place

    There is a separate price for the kitchen and extension
    • chattychappy
    • By chattychappy 28th Sep 17, 11:52 PM
    • 6,364 Posts
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    chattychappy
    • #6
    • 28th Sep 17, 11:52 PM
    • #6
    • 28th Sep 17, 11:52 PM
    Then perhaps all is not lost. Could you have had one done without the other? (No doubt there all sorts of arguments that both sides could run to determine whether each part is an "item" within the meaning of the act.)
    • hennaq_1
    • By hennaq_1 3rd Oct 17, 9:16 PM
    • 19 Posts
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    hennaq_1
    • #7
    • 3rd Oct 17, 9:16 PM
    • #7
    • 3rd Oct 17, 9:16 PM
    The contract is broken down into two contracts.

    Contract 1 - kitchen. We paid £200 on credit card as a deposit. The total amount of the kitchen is 10 grand.

    Contract 2 - extension. We paid another £200 on credit card as a deposit. The total amount 24 grand.

    As we paid two seperate payments on the credit card and the works don't relate to each other would we be covered?
    • hennaq_1
    • By hennaq_1 3rd Oct 17, 9:17 PM
    • 19 Posts
    • 2 Thanks
    hennaq_1
    • #8
    • 3rd Oct 17, 9:17 PM
    • #8
    • 3rd Oct 17, 9:17 PM
    The prices are stated on the contract and the contract had 2 sections we had to sign. A contract one section for the kitchen and a contract 2 section for the extension. Both were signed - we have proof of this via emails
    • zx81
    • By zx81 3rd Oct 17, 9:18 PM
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    zx81
    • #9
    • 3rd Oct 17, 9:18 PM
    • #9
    • 3rd Oct 17, 9:18 PM
    It's certainly worth a shot. That's exactly how you should position it - as two separate contracts /purchases.

    They may, of course, argue that you couldn't have the kitchen without the extension so they are bundled, but see how it goes.

    Let us know how you get on.
    • hennaq_1
    • By hennaq_1 3rd Oct 17, 10:15 PM
    • 19 Posts
    • 2 Thanks
    hennaq_1
    We actually could have the kitchen without the extension. We have floor plans drawn by the architect showing that the kitchen would be placed in the existing dining room. The extension was really only to be used as another living space.

    Not only this we made 2 x £200 payments on the credit card for each contract.

    We are hopeful, but the credit card provider is asking for a letter from our other bank confirming that they can't do a charge back on the amounts paid through bank transfer. Hopefully we will get our money back if we can dispute that we have two contracts instead of one.
    • PeacefulWaters
    • By PeacefulWaters 4th Oct 17, 9:50 AM
    • 7,002 Posts
    • 8,610 Thanks
    PeacefulWaters
    but the credit card provider is asking for a letter from our other bank confirming that they can't do a charge back on the amounts paid through bank transfer.
    That is one of the worst examples of a delaying tactic on S75 ever!
    • eco_warrior
    • By eco_warrior 11th Oct 17, 7:26 PM
    • 18 Posts
    • 6 Thanks
    eco_warrior
    That is one of the worst examples of a delaying tactic on S75 ever!
    Originally posted by PeacefulWaters
    Common practice. Why pay out when another bank already has?
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