Paying a deposit for furniture on Mastercard

brifox

Please can someone save me from hiring a lawyer to read the small print. If I pay a deposit for a new suite to a furniture store and that store goes to the wall before the goods are supplied can I recover the deposit from the Mastercard bank?

exel1966

The card provider, NOT Mastercard become jointly liable under the Consumer Credit Act Section 75 in this type of scenario.

brifox

Many thanks. Just wasn't clear as to whether a "deposit" was defined differently to "goods". Presumably then this also covers a "service" ie if I pay for my car servicing with Visa or Mastercard and I'm not entirely happy with it I can complain to the card provider as well?

YorkshireBoy

Take a look at any credit agreement. For example, here's what Egg say...

IMPORTANT - READ THIS CAREFULLY TO FIND OUT ABOUT YOUR RIGHTS

The Consumer Credit Act 1974 lays down certain requirements for your protection which should have been complied with when this agreement was made. If they were not, we cannot enforce the agreement without getting a court order.

The Act also gives you a number of rights:

1) ...<snipped as irrelevant>...

2) If you received unsatisfactory goods or services paid for under this agreement, apart from any bought with a cash loan, you may have a right to sue the supplier, us or both.

3) If the contract is not fulfilled, perhaps because the supplier has gone out of business, you may still be able to sue us.

http://new.egg.com/visitor/0,,3_11087--View_1068,00.html

And from the OFT...

[SIZE=-1]The claim is not limited to the amount of the credit card transaction. Customers can claim for all losses caused by the breach of contract or misrepresentation. And this applies even if all they paid by credit card was the deposit.[/SIZE]

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/31/creditcards-31.htm