Section 75 refunds - article discussion

be96erj

I recently paid my builder to do some work for me, and by paying £100 deposit on my credit card. He did not complete the work as he went out of business, so I am now pursuing a s75 claim to get the rest of the work done.

Has anyone else been through something similar? I do not expect to get the money back from the CC company easily (especially as I expect it to cost about £10k to remedy), but do people think it would be okay for me to pay for the work now, and claim the money back from the CC company later? Or should I wait to get an official reply? Its just that I expect the CC to drag their feed as much as possible:mad:

may thanks

jonesMUFCforever

be96erj wrote: »

I recently paid my builder to do some work for me, and by paying £100 deposit on my credit card. He did not complete the work as he went out of business, so I am now pursuing a s75 claim to get the rest of the work done.

Has anyone else been through something similar? I do not expect to get the money back from the CC company easily (especially as I expect it to cost about £10k to remedy), but do people think it would be okay for me to pay for the work now, and claim the money back from the CC company later? Or should I wait to get an official reply? Its just that I expect the CC to drag their feed as much as possible:mad:

may thanks

Have you got a watertight contract and full quote for work to be done?
How much did you actually pay the builder in total and what works are outstanding.
What work are wanting to pay for now?

donkingkong

I bought a phone from Aliexpress which worked fine for 3 months. Unfortunately it has developed a fault. As a result I've ordered a new one and started a section 75 to recover the money from my Capitalone credit card.

Capitalone have just got back to me with the following

IMPORTANT INFORMATION

Thank you for your letter in regards to the transaction to WWW.ALIEXPRESS.COM (the “Merchant”) for £205.19.

We are sorry to hear about the problems you have encountered with the Merchant. We have considered two ways in which we may have been able to help you recover the sums paid by you to the Merchant:

1. Chargeback; and
2. A claim under Section 75 of the Consumer Credit Act 1974 ("the Act").

1. Chargeback

We have certain rights to claim a refund of a disputed transaction from a merchant’s bank on a customer’s behalf; this is known as a chargeback. However, there are certain restrictions and timeframe limitations set out by MasterCard as to whether we can claim a refund.

Unfortunately, we are unable to pursue a chargeback on your behalf on this occasion because of the length of time between the transaction date and when you contacted us to dispute the transaction.

We have also considered whether you may have a claim under Section 75 of the Consumer Credit Act 1974 (the “Act”).

2. Section 75 of the Act

Section 75 of the Act can offer protection to consumers who use a credit card to purchase goods and/or services in part or full. There are a number of conditions that must be satisfied in order for a claim under Section 75 to be considered. These include but are not limited to:

- There must be a debtor (you), creditor (Capital One) and supplier (WWW.ALIEXPRESS.COM) agreement (i.e. a direct 3-way agreement between the parties).
- The value of each item or service purchased must be over £100 but not exceed £30,000.
- There must be a proven claim against the supplier for misrepresentation or breach of contract.
- The transaction date or cause of action must be within the time limits set out in the Limitation Act 1980. This is usually 6 years.

If the above criteria are not met, then there is no entitlement to a refund under Section 75 of the Act.

In light of our investigation and evidence provided to date, your account statement shows that you have been debited by a payment processor and not by the Merchant. The Merchant has used a payment processor and therefore we do not have a direct relationship with AliExpress. It is therefore considered that you do not have a claim under Section 75 of the Act and, as such, Capital One is not jointly liable for any misrepresentation or breach of contract by the Merchant. This is because there is no debtor, creditor and supplier agreement as required by the Act.

Summary of investigation

Unfortunately, we cannot assist you with your claim on this occasion as we are unable to recover the disputed amount via chargeback or consider a claim under Section 75 of the Act. I’m sorry this may not be the response you were hoping for.

Is this fair or not. I believe on Aliexpress the only way to pay is using their payment method. Does this mean no purchases are covered under section 75?

samwardill

Why don't you ask Citizens Advice consumer helpline (https://ssl.datamotion.com/form.aspx?co=3438&frm=citacomplainform&to=flare.fromforms) what they say?

The response from Capital One doesn't even say who the payment processor is. Have they told you? I'm guessing it wasn't even obvious to you that they were using a payment processor. Was it?

As a first step I would lodge an official complaint via Capital One complaint process.

meer53

Why didn't you contact Aliexpress about the fault first ?

Chris7030

Can you please tell me if there is a time limit for making a Section 75 claim. I purchased furniture from ScS just over 2 years ago. The recliner chair has developed a fault, the warranty insurance will not pay out as they are stating it is a manufacturing fault (have specialist report) and ScS are not playing ball. Can I make a section 75 claim?

derrick

Chris7030 wrote: »

Can you please tell me if there is a time limit for making a Section 75 claim. I purchased furniture from ScS just over 2 years ago. The recliner chair has developed a fault, the warranty insurance will not pay out as they are stating it is a manufacturing fault (have specialist report) and ScS are not playing ball. Can I make a section 75 claim?

You have the same amount of time as you would against the retailer i.e.up to 6 years to make a claim , you have the same rights against the CC as against the retailer, so 6 years is your answer.


.

RobertinHerts

I don't see any mention about how long the Credit card company can take to decide whether to pay up or not.

I lodged a Section 75 claim with Nationwide four months ago (November 2015) and, despite chasing them regularly and putting in complaints, the most recent was addressed to the MD by name and I threatened to go to the Financial ombudsman, all they say is that there's no time limit for processing a Section 75 claim.

In other words they can take as long as they want and hope that the complainant will give up. Are they within their rights to do this?

I see there are similar comments in the Credit card discussion board.

juleswill1

I paid for flights with a debit card.
I paid for hotel with credit card
Flights got cancelled due to Italian airport strikes flights were refunded.
Can I claim for the cost of my hotel from credit card as although they weren't at fault and willing for us to go we could not get there we were unable to use the services?
Cost of Hotel £550 is non refundable
thanks for any advice

Crabman

RobertinHerts wrote: »

I don't see any mention about how long the Credit card company can take to decide whether to pay up or not.

I lodged a Section 75 claim with Nationwide four months ago (November 2015) and, despite chasing them regularly and putting in complaints, the most recent was addressed to the MD by name and I threatened to go to the Financial ombudsman, all they say is that there's no time limit for processing a Section 75 claim.

In other words they can take as long as they want and hope that the complainant will give up. Are they within their rights to do this?

I see there are similar comments in the Credit card discussion board.

This is incorrect. They have 8 weeks to resolve a complaint and you can then refer to the FOS.