Section 75 - claim getting nowhere - advise please

meer53

You really need to find out from MBNA exactly what they are doing for you, i can't see that they're dealing with a Section 75 claim as to do this, the onus is on you to provide evidence of a breach of contract. Does your documentation to MBNA show this ? Where i work, a customer is never refunded under Section 75 until we have been successful. A chargeback under Visa regulations is different, the customer is refunded when the chargeback is actioned.

mothership_2

I didn't have chance to contact MBNA last week but have just spoken to them again. They called to find out whether the merchant had sent me a cheque as they had said they would. They haven't of course.

I did establish some key things:

My claim is being dealt with by their Section 75 team.
Agreement that MBNA are "Jointly and Severally liable"

I asked if the are jointly & severally liable then shouldn't they just refund the money and then pursue the merchant afterwards. I was advised in no uncertain terms "Not at all, that's not how it works, you are suing us and we are trying to get the money refunded to you"

Now I'm dreadfully confused about what this Section 75 claim business is meant to do for me. There even seems to be differences of opinion here as well. What moonrakerz and others advise seems straightforward i.e. chase MBNA and threaten court action (I don't wish to do this unless I can help it because I have no idea how to word the form) but it sounds as if meer53 works for a card company and says the customer is never paid until they are successful. In my case though the merchant have told MBNA that they are going to refund me not MBNA.

Aaaarrrggghhh - can anyone help further please?

dazza.mk

mothership wrote: »

I didn't have chance to contact MBNA last week but have just spoken to them again. They called to find out whether the merchant had sent me a cheque as they had said they would. They haven't of course.

I did establish some key things:

My claim is being dealt with by their Section 75 team.
Agreement that MBNA are "Jointly and Severally liable"

I asked if the are jointly & severally liable then shouldn't they just refund the money and then pursue the merchant afterwards. I was advised in no uncertain terms "Not at all, that's not how it works, you are suing us and we are trying to get the money refunded to you"

Now I'm dreadfully confused about what this Section 75 claim business is meant to do for me. There even seems to be differences of opinion here as well. What moonrakerz and others advise seems straightforward i.e. chase MBNA and threaten court action (I don't wish to do this unless I can help it because I have no idea how to word the form) but it sounds as if meer53 works for a card company and says the customer is never paid until they are successful. In my case though the merchant have told MBNA that they are going to refund me not MBNA.

Aaaarrrggghhh - can anyone help further please?

That is how it works, they should refund you and then they should chase the merchant to refund THEM , but that is irrelevant to you.

make a formal complaint:

http://www.mbna.co.uk/contact-us/complaints-procedure/

Assuming they are still messing you around after 8 weeks (or deadlock) taking it to the Financial Ombudsman

....or small claims court

ManicMum

I have been dealing with MBNA for a S75 claim for about 9 months now. They are terrible. They originally phoned me and told me there was nothing they could do and my best bet was to sell the goods I had a problem with. Not even a written reply to my letter regarding the dispute. It is now with the ombudsman. I would advise you to go to them. Let them look into it. I also got advice from trading standards who advised sending the merchant one last letter recorded delivery.

Good luck and don't give up.

mothership_2

Cheers for the advice. I will gladly formally complain in writing both to MBNA and to the Ombudsman but, and here's the biggie, if there's nothing written down about MBNA's Section 75 policy, how can I claim they are messing about?

Technically MBNA have not refused my claim and they will state that they are pursuing the floor company on my behalf. I am not being charged interest on the debt either but it is still hanging over my head.

Plxply

MBNA can say anything they want about their Section 75 policy, but it's actually part of the Consumer Credit Act 1974 (Section 75 funnily enough), therefore it doesn't matter what your agreement with them says, national legislation will always override a contractual agreement.

For more information:
http://www.oft.gov.uk/about-the-oft/legal-powers/legal/cca/equal-liability
http://www.legislation.gov.uk/ukpga/1974/39/contents

chattychappy

Yep, it doesn't matter what MBNA's policy are, what teams they set up etc. They are jointly and severally liable. This means THEY are responsible for delivering the contract or refunding.

The only question is how to enforce your rights. The basic choices are:

1) FOS - they will investigate once you've exhausted MBNA's formal complaints procedure. That doesn't mean go around the loop forever on the phone being fobbed. It means complaint in writing and remedy or deadline.

2) Sue in the county court. (Sue both, the merchant and MBNA.) Warn them first that you will do this (in writing).

This is "how it works", whether MBNA like it or not. It is no surprise that an MBNA op will provide a "spun" version of your rights.

meer53

MBNA don't have to refund you if they are dealing with a Section 75 claim, they are pursuing the retailer on your behalf, you will be refunded if they are successful or if they decide that to take it any further will not be cost effective for them. I do work in the Cards Disputes department of a bank, i deal with this every day, different banks may have different ways of dealing with Section 75 claims. If this goes to court (we would weigh up the costs involved before we would do this, and the evidence we have eg, whether our customer would have a chance of being successful in court) the decision will be made there. From what you've said, the retailer will probably pay up before this happens.
As MBNA are dealing with this as a Section 75 claim, you wouldn't have much chance of taking this to the Ombudsman as they're still trying to help you. They have to issue a letter of deadlock for you to do this, and i can't see them doing this until the Section 75 issue is resolved.

jonesMUFCforever

You no longer need a letter of deadlock to contact Ombudsman - if after 8 weeks the complaint is not resolved you are free to contact them.

chattychappy

meer53 wrote: »

MBNA don't have to refund you if they are dealing with a Section 75 claim, they are pursuing the retailer on your behalf,

This is simply wrong in law, though I can understand that enquiries you receive are processed as such.

Section 75 simply dictates joint and several liability for performance of a contract. The lender ranks equal with the merchant. There is no question of "pursuing the retailer on your behalf".

meer53 wrote: »

As MBNA are dealing with this as a Section 75 claim, you wouldn't have much chance of taking this to the Ombudsman as they're still trying to help you. They have to issue a letter of deadlock for you to do this,

Yes, the FOS won't investigate until the customer has complained to the CC and the CC has had a chance to resolve the matter. But they don't require a deadlock letter if the CC is stalling - and claiming that they are "pursuing the retailer on your behalf" wouldn't stand up. The cardholder's claim is on the LENDER - and that is what s75 is about.