Section 75

I am a Sole Trader and I used my personal credit card to purchase items for
for business purposes. The supplier went bust and I did not receive the goods. I then found out that the supplier had ceased to trade.I contacted my Credit Card Co who stated that as it was for business purposes I could not claim for the loss under Section 75.

Is this correct please !!!!!!



  • windswept
    windswept Posts: 1,412 Forumite
    I believe so - but at least you can use your losses to offset your tax bill.
    Have you only just started your business - is that why the payments for goods were up front?
    "There is a light that never goes out"
  • udydudy
    udydudy Posts: 559 Forumite
    First Anniversary Combo Breaker
    Did not want to start a new thread so am adding this here since this thread also talks about section 75.

    Is section 75 still valid if you have closed yoru card account??. I had a barclays card on which i bought a 3 year warranty and a cacorder from empire direct. but empire direct has gone bust and i need to use the warranty as the camcorder isnt working. So can i claim under section 75? as i cancelled the card a year ago.
  • Posts: 1,927 Forumite
    First Anniversary First Post Combo Breaker

    I disagree, see notes from 2006 amendment:

    Section 1: Definition of "individual"
    15. [FONT=TimesNewRoman,Italic]Section 1 [/FONT]amends section 189(1) of the 1974 Act to provide a new definition
    of "individual". This restricts the partnerships that are to be regarded as "individuals"
    to those consisting of two or three partners, not all of whom are bodies corporate.
    This means that in future borrowing or hire by partnerships of more than three
    members will not be covered by the 1974 Act, i.e. these partnerships will be treated in
    the same way as bodies corporate

    If the act will cover partnerships of upto 3 partners I would think it would cover a sole trader.

  • Posts: 1,927 Forumite
    First Anniversary First Post Combo Breaker
    #3, Section 75 Cover would still be valid as the Section 75 liability was established when you purchased the goods, although Barclays Customer Service may try to tell you otherwise and I wouldn't be surprised if you have to follow their complaints procedure to get them to honour the liabilityl.
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