Section 75 Refund: Interest Due?

jimbo40

I am waiting for a refund on a purchase on my credit card under section 75. Whilst I am waiting I have been paying inteerst on my balance, just paying the minimum each month. Does section 75 give provision for the interest I have paid be also refunded to me once the claim is settled?

ironlady2022

No it doesn't. It's up to you whether you want to pay it all off or the minimum.

magpiecottage

mayling03 wrote: »

No it doesn't. It's up to you whether you want to pay it all off or the minimum.

That is debatable. If you argue that it is a reasonably foreseeable consequence of the retailer's failure then yes it would be.

Logically, if you had to go out and purchase a replacement item then you might easily not be in a position to repay the credit card provider.

ironlady2022

If section 75 did cover interest then many people would not pay it off. And visa would be losing out on so much. It will only cover the cost of the product bought.

YorkshireBoy

mayling03 wrote: »

No it doesn't.

It will only cover the cost of the product bought.

Statements of fact? Or opinion?

If the former, please provide a source for your information. If the latter, I suggest you read the plentiful information on the OFT website...specifically the bits about 'consequential losses'.

magpiecottage

mayling03 wrote: »

If section 75 did cover interest then many people would not pay it off. And visa would be losing out on so much. It will only cover the cost of the product bought.

They would be losing exactly what the retailer was liable for - if that included interest then the Visa would have to pay that too.

Allowance is, I presume, made for this in the fees charged to retailers.

chattychappy

My observations are these:

s75 makes the CC company a party along with the retailer.

If a condition of the contract is breached - eg the goods were defective, then you can reject them. The contract is rescinded. Together the retailer and CC must put you back into the position you were before you entered the contract. I would "hope" this would include interest charges - but whether these are truly consequential and not too remote I think is also debatable.

In other situations, you might be entitled (or negotiate) a refund, but you wouldn't necessarily be entitled to interest. (eg a "money back if not delighted" type deal).