Won County Court Case, Halifax still won't honour Section 75

TinMan_3

Hi there,

Back in July I purchased a car with my Halifax credit card; it turned out to have defective (dangerous) brakes and the garage refused liability. It cost £1200 to get the brakes fixed, so I registered a dispute with Halifax. They acknowledged S75, but advised they could not adjudicate the facts of the case, and I'd have to deal with the merchant directly. They did though put the purchase amount of the car (£12000) in dispute so I haven't had to settle the bill yet.

I have now won a county court judgement against the garage for the full costs of fixing the brakes, but Halifax are now saying I have to prove I have taken all reasonable steps (including sending in bailiffs) to enforce the judgement and get my money off the rogue trader before they will consider my claim.

Seeing as they are jointly and severally liable, are they within their rights to take this position?

calibrax

TinMan wrote: »

Hi there,

Back in July I purchased a car with my Halifax credit card; it turned out to have defective (dangerous) brakes and the garage refused liability. It cost £1200 to get the brakes fixed, so I registered a dispute with Halifax. They acknowledged S75, but advised they could not adjudicate the facts of the case, and I'd have to deal with the merchant directly. They did though put the purchase amount of the car (£12000) in dispute so I haven't had to settle the bill yet.

I have now won a county court judgement against the garage for the full costs of fixing the brakes, but Halifax are now saying I have to prove I have taken all reasonable steps (including sending in bailiffs) to enforce the judgement and get my money off the rogue trader before they will consider my claim.

Seeing as they are jointly and severally liable, are they within their rights to take this position?

You took out a judgement against the garage, so it's logical for them to ask you to show that you have been unable to enforce it. But you are correct... under S75 they are still liable. However, it's usually easier to pursue the retailer.

TinMan_3

Yes, I'm kicking myself for not naming them as co-defendant in the case, but the moneyclaim online system didn't seem to give an option for that. I've played Halifax's game though and proved my case in court, why should I now have to go to the time and trouble of chasing the retailer when I've paid my percentage to the credit card company in the sale price?

Now seeing as i've got £12k in a bank account earning interest and held in dispute on the credit card account for 4 months, I'm in no real hurry to settle. Since the transaction is clearly a disputed one until the retailer (or Halifax) clears the court order by giving me the money, are Halifax obliged to keep the 12k in dispute? If so, that's a serious bargaining chip with them...

udydudy

The percentage of sale price that you were charged was not you paying halifax but you paying the retailer for his costs that is charged by Halifax (joke is it is retailers charge people 1.5% or 2.5% whilst most card companies charge only 1% to 1.5%)

I would think you would need to send bailiffs in before halifax will pay you. I am not sure how long Halifax will keep the £12,000 in abyance most probably they will make you pay the full if you do not show that you have taken all the steps. but then maybe not.

TinMan_3

Thanks for your reply; I'm stunned that Halifax can wriggle like this when it's an open and shut case legally. I know from the retailer's attitude to this point that they'll duck and dive as long as humanly possible; how can I enforce Halifax's JOINT (not secondary) responsibility under the law? Their last correspondence was very specific, but I just can't believe its true:

"I note you have been awarded a judgement for the sum of £xxx. Before we are able to consider your claim you have to take all reasonable steps against the merchant to enforce the judgement which may involve the employment of bailiffs. If this action is taken and you are unsuccessful in obtaining a refund, please contact us with the details of the steps taken to enforce the judgement."

Surely that can't be what S75 allows?

NickX

I think that under Section 75 you are supposed to exhaust all negotiations with the actual supplier before going to the Credit Card Provider. However, in this case I do understand your frustration at the obstructive attitude from Halifax. Perhaps a visit to Trading Standards could twist their arm to be more reasonable.

Good Luck.

TinMan_3

Update - Having submitted a file to the financial ombudsman in November, they had requested a full and final decision from the Halifax using the form of words that they need.

Low and behold today (around the end of the eight week window they had to reply to the ombudsman), a customer services manager (who was thoroughly pleasant), phoned me to say he had reviewed the file and consulted with legal services. To my surprise he was at a loss to explain Halifax's previous position and fully admitted they were in the wrong. All my original costs, plus legal expenses and court fees are to be refunded immediately, plus a goodwill gesture of £100. They also fully intended to issue a training note to the card services division about their spurious advice and pursue the trader in full for their losses.

Additionally, if the ombudsman finds that Halifax's actions were vexatious, he may also choose to give a further award.

All in all, a great result (but now have to actually pay for the car, 8 months later...). Just goes to show; keep at it and don't take no for an answer!