Section 75 refunds - article discussion

ellenGB

As Martin wrote, the card issuer is jointly and severally liable, i.e. if x doesn't pay, the credit card company has to. He's put the relevant clause on the website. Search for Section 75.

Floss1e

Thanks, ellenGB, Before writing to Tesco, I did a bit of homework, looking at this site and at which? and I'm fairly confident that my claim is strong. My difficulty is in persuading Tesco pay up!

leylandi

Under Section 75 a consumer has the same rights ("a like claim") against the credit card company as they have against the company which supplied the goods or services. The claim against the supplier could include several years interest, which would be simple interest at the courts' 8% judgement rate.

But the consumer, if they have not repaid the card company, may have paid interest for several years which at 30% may amount to more than was originally paid for the goods or services. I can see a moral argument for the card company repaying the interest they have received, but because it's "a like claim", not a legal argument, and so I don't think it would work in a court. Has anyone had any relevant experience of the way the FSA deal with this question? I assume the FSA might be more sympathetic?

I can see a much better argument for applying the credit card company's interest rate to the time between the claim being made against the card co., and the consumer being repaid by them. For example, if the card co. drags its feet for a year on a £10,000 claim when they are charging 29% APR, why should they profit? Does anyone have any direct experience of the way the FSA deals with interest in this situation?

rwms71

I purchased a second hand car which I find needs a lot of repair work so I contact the garage I bought it from and ask to return it for a full refund (this was less than a week after purchase) The garage owner refuses to help me saying everything is wear and tear and I have no warranty.

If I claim for the value of the car from my credit card company, what happens to the car? Does the credit card company take the car from me? or do I claim for the cost of the repairs.

emjayjee

emjayjee wrote: »

Hi

I am considering apply for section 75. I bought solar panels from a company and put down 5k on my debit card, and 3.5K on my credit card.

After a few months, I thought something wasn't right as I was producing a lot less energy that what was predicted. I looked into it, and the more I looked/got advice, I was told it has not been installed correctly.

I contacted the installer who refused my complaint and blamed the weather, and would not come and check it out. I have been in contact with the regulator (who took nearly 4 months to come to a decision!) who replied today that they have found a discrepancy in the installation (from pictures I have sent them) and the contract. It "works", but instead of functioning "100%" if installed as per contract, it works "66%" because of incorrect installation. I have also been told that they regulator cannot help any more as the company has ceased trading!

Am I covered by the credit card for the whole amount (8.5K) for breach of contract (incorrect installation), or as it works (albeit incorrectly and not according to contract) they would not cover it?

Thanks

Hi,

This was my original scenario, and now after many months and paperwork exchange with the credit card company I have provided them with enough information they are happy to issue me with an offer to close this claim. The offer is for the full payment amount I made from credit card and other sources (8.5k).

However, as part of the paperwork they wanted, they requested me to get an independent report, and also a quote to put it right. The report showed that the installation was of poor standard (much worse than I had expected). It was deemed dangerous and failed on multiple safety aspects. The report said the damage to the roof means it needs to be addressed, else I will have problems with water leakage, and the report goes on 4 pages. Ultimately the quote to put it back to standard is 10.5k. I also have lost out on solar production (annual estimate was approx 1-1.5k).

My question is can I ask them for the 10.5K to put it right, and also for the approx 1.5k consequential losses - or can I only claim upto the amount the contract was worth (8.5k)? It is a difference of 4k to me.

Thanks

jedi2201

Hello
I have had a phone call from an arbitration company telling me that a holiday club membership company that i made a purchase from back in 2008 has gone into liquidation. The arbitration company say they can claim back my money on the grounds that I used a credit card to make the deposit.

How can i find out if an overseas company has gone into liquidation? After reading your article on section 75 this information looks favourable however I would like to verify this as the arbitration company want £595 up front to process my claim regardless of the outcome.

Many thanks

Colin

Bat123

Re post from jedi2201

On Monday 29th I also received a cold call from Timeshare Mediation regarding Lion Resorts(formerly based in Cyprus,now decamped to Majorca).They gave me the spiel about being able to recover in full my initial outlay of £2695 in 2009,paid on Mastercard,for a upfront fee of £599 payable by credit or debit card.I was at first wary of this and told the guy,JohnMartin,that I needed to discuss with my wife and he said he will call me back Tuesday afternoon.He did advise me to look at Martin Lewis website re Section 75 and stated that if I tried to claim the money back under this clause it would cost me £370 for the paperwork(?) and a further £475 registration fee?

Has anybody else had to pay these sorts of costs under Section 75?

thanks

Bill

Optimist

Bat123 wrote: »

Re post from jedi2201

On Monday 29th I also received a cold call from Timeshare Mediation regarding Lion Resorts(formerly based in Cyprus,now decamped to Majorca).They gave me the spiel about being able to recover in full my initial outlay of £2695 in 2009,paid on Mastercard,for a upfront fee of £599 payable by credit or debit card.I was at first wary of this and told the guy,JohnMartin,that I needed to discuss with my wife and he said he will call me back Tuesday afternoon.He did advise me to look at Martin Lewis website re Section 75 and stated that if I tried to claim the money back under this clause it would cost me £370 for the paperwork(?) and a further £475 registration fee?

Has anybody else had to pay these sorts of costs under Section 75?

thanks

Bill

Firstly you can not claim back under Section 75 for a debit card purchase. There is a charge back that is possible BUT there is a time limit of usually 120 days. It is also not a legal right but a term between the card issuer and the bank/card company.

Section 75 is a legal right within the Consumer Credit Act which is there to protect consumes against breach of contract between the supplier of the goods and the consumer who purchased said goods.

You make a claim for Section 75 with your bank or whomever issued your credit card...It is NOT a chargeable service

Do not give cold callers the time of day they are after your money !

The route to take if you have a claim is to raise it with the issuer of your credit card with which you paid for the timeshare

Jeddy

Am I covered by Section 75? I recently discovered 2 transactions on my credit card, one for £100 and one for £250 paid to Virgin Media. I disputed these immediately I saw them however I'm told that it will take up to 28 working days for them to be investigated and to get a refund. I've just discovered that these are actually continuous payment authorities too, although they've cancelled those now I'm not sure if that's in time to stop the next debit.
Can I use section 75 to get a refund to my account quicker, after all, I didn't make any purchase! If so, since the credit card company are not being at all helpful is there a URL I can point them to to prove this?
Thanks, Jeddy

ellenGB

I found that I had to go through a procedure: write to the company and given them a reasonable time to refund me. They didn't, so I went to the credit card company, informed them (by email) that I had been granted a refund for the faulty goods but had not been refunded or 4 weeks despite reminders, and was therefore applying for a refund under Section 75. They are jointly and independently liable. You have to give them 8 weeks before the Financial Ombudsman will get involved. When my credit card compnay dragged their feet and I realsied that it was nearly 8 weeks since I first emailed them, I rang the Financial Ombudsman, he rang the credit card company, and I had the refund the next day. He told me he would ring them and I think he informed them what he would charge them if he had to get involved. It sometimes takes time. Keep all emails in a folder from the start. Makes life easier. Good luck.

PS The company who would not refund me for the faulty computer was of no interest to Trading Standards so I feel for the next person who runs into trouble.