Section 75 Limits?

DebtFree

I am making a claim against a credit card company using Section 75 of the Consumer Credit Act.

I need to know if the limit of the Credit Card companys' liability is the amount I paid for the sevice I failed to receive, or is it the amount required to now fulfil the contract through another company?

For example (not the actual case scenario):

I purchase a holiday to Barbados for £150, paid for by credit card.
The holiday company goes bust.
I claim under section 75.

Do the credit card company only have to refund the £150, or are they liable to fulfil the contract by paying me an amount that allows me to book a similar holiday with another company?

file_wizzard

In short under S.75 the credit card company is not actually obliged to honour the agreement or contract itself, just compensate you for any loss suffered, however this will include any consequently loss incurred, so in the example given as long as you could prove a case against the original supplier then the C.C company would be jointly and severely liable to include any consequential losses.

Joe_Bloggs

Consider this link from the Financial Ombudsman Service.
J_B.

Rafter

Not exactly sure of the legal position, but I think you would struggle to get S75 protection unless your holiday was actually under way, or the installation of the conservatory or whatever had already started.

If your 'loss' is limited to a lost deposit or amount paid before work had started, to claim that your credit card company owe you a more expensive holiday will probably fall on deaf ears.

R.

nomoneytoday

As I understand it, if you were already in Barbados and a flight home cost £200 the cc (and travel ins) would cover it, however they wouldn't get you to Barbados as its not their job to "pricematch".

DebtFree

Thank you to all who replied.
I found file_wizzard's comments particularly helpful & I now know why the original offer was so "generous". The cost of "compensate you for any loss suffered" is far higher than the original purchase price.
Thanks again.