Section 75 Consumer Credit Act

MET63

Hi Folks, I have issues with a motorhome I've just purchased and I am having difficult reaching an agreement with trader regarding faults etc. I paid a deposit of £250 by credit card so I know I am covered by Section 75 Consumer Credit Act. The value of the purchase was £31,995.00 and there is an upper limit of £30,000.00. What happens here? can I get £30,000.00 back from the credit card company or does this mean they have no obligation to payout at all.

derrick

MET63 wrote: »

Hi Folks, I have issues with a motorhome I've just purchased and I am having difficult reaching an agreement with trader regarding faults etc. I paid a deposit of £250 by credit card so I know I am covered by Section 75 Consumer Credit Act. The value of the purchase was £31,995.00 and there is an upper limit of £30,000.00. What happens here? can I get £30,000.00 back from the credit card company or does this mean they have no obligation to payout at all.

Correct,you have breached the limit, S75 does not apply.


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wealdroam

Even though it appears that section 75 doesn't apply in this case, surely all that s75 does is make the credit company jointly responsible for the contract.

That does not always mean that simply by asking, you can get your money back. In this case (if price was below £30,000) I would imagine they would be acting as some sort of 'go between' to help reach an agreement.

bingo_bango

Although the limits of S.75 have been reached, you could still have had recourse under the new S.75A. As you used a credit card (which is general credit) S.75A does NOT apply here and so this won't help you, but I'm posting for others who come across this post in the future.

It covers transactions up to £60,260 (S.75 still applies under £30K) where the creditor and supplier are linked (e.g. a car dealer offering finance on behalf of a creditor) and means you can still pursue the credit company. Unlike the previous right to pursue either party in the linked transaction, you must in this case pursue the supplier of the goods first. Only if you have not been able to contact them or have not been satisfactorily dealt with can you then pursue the creditor.

This is a relatively new introduction, but in force completely from 01/01/2011. Certain agreements would be covered before this date, but must meet a specific test laid out in Reg.101 of Consumer Credit (EU Directive) Regs 2010.