Section 75 and Ltd Companies

umbrella1

I am looking for advice in regard to Section 75 and Limited Companies. I have just been refused a section 75 claim by Barclaycard because the item i brought was for a Ltd company and they say that beacuse it was for busines use (invoice made out to a Ltd company) section 75 does not apply. It was however a personal credit card that the item was purchased on. Any help would be greatly appreciated.

ILW

It would appear that the company bought it on behalf of the consumer. CCA does not cover companies.

thenudeone

ILW wrote: »

It would appear that the company bought it on behalf of the consumer. CCA does not cover companies.

s75 is the part of the CONSUMER Credit Act 1974.

It does not apply to purchases made by companies.

If the invoice was made out to the company (who may have reclaimed VAT on the purchase), that's pretty strong evidence that the company purchased the goods, not the cardholder who may have facilitated payment and been reimbursed.

Why else would a private individual received an invoice / receipt in the name of a company unless the goods were for the company?

jonesMUFCforever

I agree fully with the above answers - sorry OP if this is not the answer you wanted to hear.

chattychappy

It doesn't look good.

Situation 1)
If you merely purchased something "for" the company, then S75 applies. This is the same situation as if you buy a Christmas present. Just because it is "for" someone else, doesn't mean that you are not in contract with the merchant. This is the requirement for S75 - main cardholder is in contract with the merchant (as well as the £100 requirement).

Situation 2)
If the Ltd company made the purchase then S75 doesn't apply because the cardholder is not in contract with the merchant.

The invoice being made out to the company strongly suggests situation 2). But its not conclusive. The question is: who, in fact, made the purchase? Was there an order form? Was something entered onto the web?

I've bought stuff personally, had it delivered to my company and the invoice has been to the company, ie the delivery address, even though it was a personal purchase.

If you made the purchase personally (didn't mention the company) but after completing the purchase asked for a VAT invoice to be made out to the company, then technically this is post-contract. So technically you could argue that it was a personal purchase. But this would be a real struggle!