Section 75 - help!

bunny26

I will try to keep this brief. In 20089 my husband purchased an engine with his personal credit card. Item was wrong and would not fit what it was supposed to. Sent back, but no refund forthcoming. Tried Barclaycard. They said (1) the engine was right (it would not fit vehicle) and secondly we had to go to court first (we now now this is a crock!). Judgment awarded in my husbands favour. No money forthcoming again. Went to FOS in Jan 2010. Only just been heard and found against him. They said that they "assume "the item was to be used in his business and there is no debtor-creditor-supplier chain. They also said that they "assume" he used his personal card as he did not have enough spare credit on his business card. Is it right that you cannot buy items on your personal credit card for use in business. He says there is no law, but it is just something they do.

ILW

To my knowledge, business transactions are not covered by the CCA.

chattychappy

It sounds like their logic is this:

1) the business contracted to buy the engine with the merchant.
2) husband paid on his credit card

Therefore the chain is broken - because the "business" and the "husband" are distinct people.

So I don't think the issue is that it was a business purchase (though that might be problematic too) - just that there were 4 parties instead of 3 and two distinct contract. Ie no joint liability under s75.

The above holds if the business is a Ltd. If he is self-employed, then I don't see that the chain is broken (because the business and the husband are the same legal person) and I think the FOS got their reasoning wrong.

If, OP, you can clarify, then we can consider further the point that ILW raised.

dazza.mk

Agree with Chattychappy the relationship is only broken if the business is incorporated

bunny26

Hi,

Many thanks. He is self employed and his company is not a limited company. I did point this out the FOS, but had no reply.

dazza.mk

Of course you could go back to the court route, if I understand the above correctly you said that you had a small claims decision in your favour? - you can apply o the courts to enforce the decision:

http://hmctsformfinder.direct.gov.uk/courtfinder/forms/ex321_e.pdf

bunny26

This has dragged on for more than three years. The person at fault owes other people £182,000 and has been in prison. We could issue a warrant, but do not see why we should when Barclaycard are jointly liable. I have more chance of winning tonight's Euro Millions that seeing the £4,000 owed!

chattychappy

When you sued, did you have Barclaycard as a joint defendant?

bunny26

No, he just took the merchant to court, as per what Barclaycard told him!

dazza.mk

Ahh ok, I misunderstood I thought you'd taken Barclaycard to court so would be serving the warrant on them.

bunny26

I have just heard back from the FOS and they had this to say -

did consider the point you had made, that (my hushand) and (his business) are one and the same entity but I do not agree with you on this point. (His business) is a partnership, with Mr XX being the other partner. If my husband and his business are one and the same legal entity then it must follow that Mr XX (my husbands parnter) and his business are also the same legal entity. Then, by extension, my husbband and Mr XX would also be the same legal entity which is obviously not true.



I have taken my husbands name out and Mr XX is his business partner. I hope this is quite straightfoward.

Even though he has a business partner, the company is still not a limited so surely the debtor-creditor-supplier is still there.