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  • FIRST POST
    • CG19a
    • By CG19a 5th Oct 17, 6:59 PM
    • 761Posts
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    CG19a
    Hypothetical - Direct Debit/Chargeback question
    • #1
    • 5th Oct 17, 6:59 PM
    Hypothetical - Direct Debit/Chargeback question 5th Oct 17 at 6:59 PM
    As said, it's a hypothetical question, to get people's thoughts.

    In light of Monarch going under I've been thinking about a holiday I have booked with Thomas Cook.

    A lot of people will book with credit cards etc to get chargeback and section 75 protection.

    My holiday for January coming, was booked with a £50 card payment for deposit, and then I'm paying an amount each month by direct debit to clear the balance, just in the same way I'd pay off a phone bill or loan etc. In the unlikely event that Thomas Cook ran into trouble, and putting travel insurance aside for a moment, would claiming on the direct debit guarantee be an option to get the majority of the money back?
Page 1
    • YorkshireBoy
    • By YorkshireBoy 5th Oct 17, 7:01 PM
    • 29,446 Posts
    • 17,230 Thanks
    YorkshireBoy
    • #2
    • 5th Oct 17, 7:01 PM
    • #2
    • 5th Oct 17, 7:01 PM
    As said, it's a hypothetical question, to get people's thoughts.

    In light of Monarch going under I've been thinking about a holiday I have booked with Thomas Cook.

    A lot of people will book with credit cards etc to get chargeback and section 75 protection.

    My holiday for January coming, was booked with a £50 card payment for deposit, and then I'm paying an amount each month by direct debit to clear the balance, just in the same way I'd pay off a phone bill or loan etc. In the unlikely event that Thomas Cook ran into trouble, and putting travel insurance aside for a moment, would claiming on the direct debit guarantee be an option to get the majority of the money back?
    Originally posted by CG19a
    Credit or debit?


    (BTW, the answer to your question is no)
    • CG19a
    • By CG19a 5th Oct 17, 7:02 PM
    • 761 Posts
    • 455 Thanks
    CG19a
    • #3
    • 5th Oct 17, 7:02 PM
    • #3
    • 5th Oct 17, 7:02 PM
    To be honest, I can't remember what card I used for the £50, but putting that aside, would it be possible to claim the rest of it back through the direct debit guarantee?
    • Shakin Steve
    • By Shakin Steve 5th Oct 17, 7:24 PM
    • 966 Posts
    • 685 Thanks
    Shakin Steve
    • #4
    • 5th Oct 17, 7:24 PM
    • #4
    • 5th Oct 17, 7:24 PM
    To be honest, I can't remember what card I used for the £50, but putting that aside, would it be possible to claim the rest of it back through the direct debit guarantee?
    Originally posted by CG19a
    No. But the £50 deposit would be enough to claim if it was on a credit card.
    Last edited by Shakin Steve; 05-10-2017 at 10:05 PM.
    I came into this world with nothing and I've got most of it left.
    • CG19a
    • By CG19a 5th Oct 17, 7:26 PM
    • 761 Posts
    • 455 Thanks
    CG19a
    • #5
    • 5th Oct 17, 7:26 PM
    • #5
    • 5th Oct 17, 7:26 PM
    Totally get that, but it’s more about the direct debit guarantee. In a situation like this, where a supplier doesn’t provide the service being paid for, could the DD guarantee be used to reclaim what was paid through this avenue?
    • eskbanker
    • By eskbanker 5th Oct 17, 7:34 PM
    • 5,600 Posts
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    eskbanker
    • #6
    • 5th Oct 17, 7:34 PM
    • #6
    • 5th Oct 17, 7:34 PM
    You'd probably be better familiarising yourself with what the direct debit guarantee actually is, at https://www.directdebit.co.uk/DirectDebitExplained/Pages/DirectDebitGuarantee.aspx, which makes it clear that it simply offers correction of administrative errors, unlike the s75/chargeback mechanisms that protect against failure to deliver goods and services....

    So, let me be the third to say that the answer to your question is no!
    • YorkshireBoy
    • By YorkshireBoy 5th Oct 17, 7:34 PM
    • 29,446 Posts
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    YorkshireBoy
    • #7
    • 5th Oct 17, 7:34 PM
    • #7
    • 5th Oct 17, 7:34 PM
    In a situation like this, where a supplier doesn’t provide the service being paid for, could the DD guarantee be used to reclaim what was paid through this avenue?
    Originally posted by CG19a
    As I've said above, no.


    You agreed they could take the funds by DD. Whether they subsequently breach the contract and fail to deliver is irrelevant under the DD guarantee...that's not what it's for. You go to court (and line up with all the other creditors for 2p in the pound), or claim under section 75 if you paid the deposit by credit card (subject to a D-C-S relationship existing of course).
    • colsten
    • By colsten 5th Oct 17, 8:03 PM
    • 8,753 Posts
    • 7,413 Thanks
    colsten
    • #8
    • 5th Oct 17, 8:03 PM
    • #8
    • 5th Oct 17, 8:03 PM
    No. But if the £50 deposit would be enough to claim if it was on a credit card.
    Originally posted by Shakin Steve
    The minimum payment amount needs to be £100 to be covered under Section 75.
    • YorkshireBoy
    • By YorkshireBoy 5th Oct 17, 8:04 PM
    • 29,446 Posts
    • 17,230 Thanks
    YorkshireBoy
    • #9
    • 5th Oct 17, 8:04 PM
    • #9
    • 5th Oct 17, 8:04 PM
    The minimum payment amount needs to be £100 to be covered under Section 75.
    Originally posted by colsten
    The cost of the item, ie a holiday, needs to be £100 (and no more than £30K). The deposit can be as little as a penny.
    • badger09
    • By badger09 6th Oct 17, 1:01 PM
    • 5,172 Posts
    • 4,368 Thanks
    badger09
    A good summary here:


    https://www.moneyadviceservice.org.uk/en/articles/how-youre-protected-when-you-pay-by-card
    • bigadaj
    • By bigadaj 6th Oct 17, 3:01 PM
    • 10,323 Posts
    • 6,620 Thanks
    bigadaj
    The cost of the item, ie a holiday, needs to be £100 (and no more than £30K). The deposit can be as little as a penny.
    Originally posted by YorkshireBoy
    Yes, it's about the only thing I feel some sympathy to the banks for.
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