We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Section 75 consumer credit act 1974
Options

montyzoomer_2
Posts: 6 Forumite
in Credit cards
Has anybody else had to take their cc company to court for a refund? Our holiday company went bust 10 days before we flew. Flights were paid but nothing else. Spoke to Trading Standards and as with my gut instinct, paid for the rest again expecting to claim through our cc. We have now had to take them to small claims where they are disputing all of the claim. Has anyone else had this problem? It would be great to know how it was resolved!
0
Comments
-
Am i reading this right - your holiay company went bust but you still paid them more money after that?
section 75 only applies if you pay direct and not pay a third party ie travel agent.
I think you would have had to pay the airline direct and the hotel direct.
The legal system might take the view that your holiday company was indeed a third party. But i am quite happy to be corrected by anyone who knows bettermake the most of it, we are only here for the weekend.
and we will never, ever return.0 -
Am i reading this right - your holiay company went bust but you still paid them more money after that?
I think they meant that they had to pay themselves for what the holiday company should have paid for as part of the package, but didn't. Not that they paid the "bust" firm again.Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB
IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed0 -
Hi McKneff
Thank you for your thoughts. My understanding was that under section 75, there was a breach of contract between cc company and supplier of goods i.e. travel company and therefore they are equally and severally liabale.
Best wishes
Confused x0 -
yes fermi, sorry I should have made that clear. Wouldn't have got a refund for the flights which was 2 thirds of the cost as the contract had been upheld, it was between us and accomodation that we had to pay for again.
thank you for pointing that out fermi x0 -
There is some info plus case examples from the Financial Ombudsman Service that may help you in the link below.
http://www.financial-ombudsman.org.uk/publications/ombudsman-news/31/creditcards-31.htm[SIZE=-1]There can be problems if the card is accepted by a different business from the one that provided the goods and services. We see this situation most frequently in connection with timeshare and holiday club membership, where it is not unusual for the timeshare or holiday club company to use the credit card facilities of another business. The business accepting the payment may simply be acting as agent for the supplier, in which case section 75 will not apply. In order for section 75 to apply, the business that accepts the payment and the supplier have to be ‘associates’, as defined in the Consumer Credit Act. [/SIZE]
[SIZE=-1]Where customers use a credit card to buy airline or other travel tickets from a travel agent, they cannot normally claim against the travel agent if the airline delays or cancels the flight. This is because the travel agent contracted to supply the ticket, not the flight. So the customer would not have a claim under section 75 either.[/SIZE][SIZE=-1]
[/SIZE]
[SIZE=-1]However, things are different if customers use a credit card to buy the travel agent’s own ‘package’ of travel arrangements. In such instances the agent is the supplier of the holiday package. This situation is illustrated in case study 31/6. [/SIZE]Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB
IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed0 -
Not being very clear at all am I? Booked hols through Freedom Direct. 10 days before travel we had a courtesy call to ask if we wished to rebook transfers. That was 1st we knew that freedom direct had gone under. Took advice from trading standards, they went with my feeling that because the flights had been paid to the Airline by Freedom Direct (70% of cost of hols) the contract with the airline was upheld and not recouperable. However, hotel or transfer were not paid for by Freedom Direct and we then paid for the hotel etc through another company and were advised to persue a refund from cc company. CC company are denying all of the claim. How can this happen when Section 75 of 1974 Consumer Credit Acy aplies?
Anyone else had to deal with this, because I am way out of my leauge at the moment.0 -
So my cc company and Freedom Direct were associates, the contract was between us, cc company and Freedom Direct. Therefore, surely the cc. company are equally and severally liable, as are Freedom Direct who are no longer in business. So what can their defense be?0
-
Does Section 75 apply to business credit cards?
TIA
GB0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 351.1K Banking & Borrowing
- 253.2K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 244.1K Work, Benefits & Business
- 599.1K Mortgages, Homes & Bills
- 177K Life & Family
- 257.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards