Second name on credit card

lolly5648

I am a named holder on a credit card in my husband's name. I use this card all the time to pay for holidays, goods etc.

Someone has now said that I won't get the guarantee from the credit card co. if a company goes bust etc and I have spent over £100 with them. The cc company will only pay out if it is my husband who bought the goods and not me.

Is this true, I was not aware of this.

stephane_2

Complete non sense....not true...

.1xp

I read something about this the other day, but have just found this ......

Just have to do a joint claim ....

"Making A Claim

In order to make a claim to a credit card company, you must have a proper claim against the trader (however, you don't need to approach the trader to claim from them first). The total cash price of the item or the service for which you're claiming must be more than £100 (or the foreign currency equivalent) but was less than £30,000 (including VAT). Even if you pay the bill partly by credit card and partly in cash - for example you may have paid a deposit separately - the equal liability rules still applies.

If the person making the claim is an additional cardholder, it needs to be a joint claim with the person who signed the agreement for the credit card (the principal cardholder), otherwise the credit card company can reject the claim.. If you're entitled to all your money back because of a serious breach of contract, legally you can ask to receive it as a cash refund. In practice, though, you may have to accept a credit on your credit card account. If you've been charged interest whilst waiting for the refund, you can claim reasonable compensation for the losses.
If you paid for any part of a holiday club or timeshare agreement with a UK credit card and you have cancelled the agreement within 10 days of making it, some credit card companies may follow a voluntary code of practice and refund your money. Others might need written notification of a legal problem, You'll need to be able to show that you cancelled the agreement in writing.
If you make a claim under Section 75 of the Consumer Credit Act to a credit card provider and it's unsuccessful, then go to the Financial Ombudsman Services. "

Taken from http://www.consumerrightsexpert.co.uk/AdditionalGuaranteesCreditCards.html

chattychappy

Yes, unfortunately. I'm on a slow connection so can't dig around for the detail right now.

But as I understand it, there was a High Court decision that held s75 protection doesn't apply to purchases when made by an additional cardholder. This is because the main cardholder would not have privity of contract with the supplier. Ie the CC company would not be jointly liable with the merchant for performance, because the main cardholder had not entered into a contract with the merchant.

The OFT had previously taken the view that s75 should apply because an additional cardholder is effectively an agent of the main cardholder - and therefore the main cardholder (as principal) is in contract with the merchant.

It would need a higher court (Court of Appeal/Supreme Court) to set binding precedent, so I believe the law is still unclear in this area - unless there has been a further decision I'm not aware of.

KiKi

stephane wrote: »

Complete non sense....not true...

Bad advice! It is true to some extent, but as chatty chappy explains it's an unclear area.

From the main site:
"If you have an additional card for a partner, child or friend and this card is used to make payment for a item you subsequently need to claim for, you'll need to show the item provides some benefit to the primary cardholder to be covered.

So if it was a family car or gift for the main cardholder this is likely to be ok, but a solo flight for the 'plus one' isn't.

This isn't tecnically written into the legislation but is based on a ruling (62/02) by the Financial Ombudsman in 2007."


HTH
KiKi

lolly5648

Thanks for the replies that has made everything clearer - I will be careful which credit card I use if the item is just for me!