Claiming under section 75 of the CCA

bomber0405

When a credit card company pays out under section 75 of the CCA in the case of a bankrupt retailer, how does the credit card company fund their the claim?

I have a faulty TV which is 3 years old but unrepairable and out of warranty. The retailer I purchased the goods from has gone bankrupt and I am seeking reimbursement through my credit card but the fact that the supplier is bankrupt causes me concern. I understand it is possible to claim in such a scenario, but I don't understand where the credit card company will get the money from. Will they pursue the manufacturer? I know banks and credit card companies make a lot of money but can they simply afford to pay out without seeking a claim of their own.

PROLIANT

TV is out of warranty, no body has caused you any loss of any kind, why would you want to claim?

bomber0405

The TV has been diagnosed with a faulty board and the manufacturer has confirmed that the replacement part is obsolete, hence my statement that the TV is unrepairable. I have every reason to claim.

In any case, even when a product is outside of the standard warranty, one would have valid claim against the supplier if the goods did not last a certain amount of time when taking into consideration reasonable usage. Modern TV's have a reasonable lifespan in excess of five years.

Regardless of my own situation the question still remains, how do banks afford to pay out without seeking a claim of their own.

TheExpert

1. Your TV is 3 years old, out of warranty and is broken. Nobody owes you any money for it. That is what insurances are sold for. Section 75 protects you against sellers who don't deliver the product, or deliver a damaged one, etc. The fact that after 3 years of usage you uncovered a problem does not mean the Credit Card company should pay you because it was not immediately noticed.

Do you think if you bought a car and 10 years later your engine broke you would be entitled to your money back because the engine was not quite perfectly manufactured?

2. Credit Card companies claim their money from the companies which have failed to deliver on their promises or delivered faulty goods.

normanmark

The TV worked for 3 years. You've got no chance of claiming under section 75.

NickX

TheExpert wrote: »

Credit Card companies claim their money from the companies which have failed to deliver on their promises or delivered faulty goods.

Actually I think they are insured for this. They cannot claim the money back if the original supplier is insolvent.

bomber0405

If I purchased a car and 10 years later the engine broke and the manufacturer was unable to supply the part required to fix the car then of course I would pursue them for a refund/compensation.

If the supplier had gone bankrupt and I had paid by credit card, then yes I would pursue the credit card company.

dazza.mk

You are correct that you can claim for an item if it fails before its reasonable life expires, BUT:

In general Traders cannot be compelled to repair/replace an item if it is impossible (ie obsolete parts) or economically practical to do so.



http://www.west-dunbarton.gov.uk/EasySiteWeb/GatewayLink.aspx?alId=47680

bomber0405

NickX wrote: »

Actually I think they are insured for this. They cannot claim the money back if the original supplier is insolvent.

This was my initial assumption on how they would claim.

bomber0405

dazza.mk wrote: »

You are correct that you can claim for an item if it fails before its reasonable life expires, BUT:

In general Traders cannot be compelled to repair/replace an item if it is impossible (ie obsolete parts) or economically practical to do so.



http://www.west-dunbarton.gov.uk/EasySiteWeb/GatewayLink.aspx?alId=47680

The key word is reasonable. It is unreasonable to suggest that a main spare part for a TV should be obsolete within three years of purchase.

dazza.mk

It might be unreasonable to suggest that a key component for a TV might only last 3 years, but it is not unreasonable to suggest that the part might be obsolete (unless you've purchased an extended warranty for parts and services of course) as the consumer has no control over this issue.

If you are suggesting that you might to expect to replace the part within 3 years then surely its a wear and tear issue?