Section 75 - buying new windows question!

spannerzone

Hi, I'm buying new windows and doors from local company. Total job is £15k (includes some building works, bifold doors and other stuff) and have a Section 75 question.

I've got the money in the bank so that's all good - upon agreeing to their quote I paid the company an initial deposit of £1500, this was paid to them as £100 credit card payment and £1400 cheque.

Now, I've got to pay another installment before they'll start the actual works (about £10K) so do I need to pay this as £100 credit card and the rest via a cheque to again get Section 75 protection or will my original £100 credit card payment give me S75 for the entire £15k job? (It is all one job as per my quote)

I just want to make sure that my paid monies are covered if they went bankrupt etc (I have no reason to believe they will but you never know!)

Thanks for any help.

opinions4u

You should now have S75 protection for the full job.

If you get cashback or rewards on your credit card I'd use that and then clear it in full. But it won't give you any further protection.

bengalknights

No your initial £100 has covered you

chattychappy

Agree with the above. It is one contract, albeit with staged payments. You have met the s75 criteria by paying at least £100 on CC.

Different story if different amounts were for distinct jobs.

spannerzone

Thanks for the replies everyone, you've confirmed what I'd read and believed to be the case but it's nice to get other people's opinions on it.

Thanks once again!

dalesrider

Had you have paid 1p on the CC it would still have afforded S75 protection.

Although paying more on the credit card. Would allow you earn a bit more interest if the rest is in a savings acc till the CC bill is due to be paid.

Buzby

However, I do hope you have te ability to retain funds (ie a staged payment) if the works do not proceed as agreed?

chattychappy

dalesrider wrote: »

Had you have paid 1p on the CC it would still have afforded S75 protection.

Thanks for the correction.

chattychappy wrote: »

You have met the s75 criteria by paying at least £100 on CC.

What I meant was (!!) that the contract value must be over £100. Any amount paid of this paid on the CC brings you within the scope of s75.

dalesrider

chattychappy wrote: »

Thanks for the correction.



What I meant was (!!) that the contract value must be over £100. Any amount paid of this paid on the CC brings you within the scope of s75.

It wasn't correction

But contract value?

It is item price.
So one item at £100 is ok.
10 @ £10 would not be covered. Even if on the same invoice.

Although in the Op's case. I would be wanting a breakdown on that invoice to cover the seperate parts. As clearly very few will be under £100. But it would cause issues if the OP claims for one bit and the CC says that the rest is OK. But you don't have a itemised invoice. So a struggle could arise to get the correct amount back.

TBH, I would be putting the max I could on a CC, t odefer cost as much and also to offer some protection on the chargback side (much quicker) in case of the odd issue.

jonesMUFCforever

I always thought you only had to pay £1 on the credit card as long as the contract is under £30k( and over£100).
It is the value of the contract which is important not the amount charged to the credit card.

chattychappy

dalesrider wrote: »

But contract value?

Yep, I meant that in the context of the the OP getting his windows done and paying by installments, its the contract value rather than the amount of any particular instalment.

I have always seen it written (as you say) that it's the item value that is significant. So for multiple items purchased at the same time, it's the value of each item rather than the total value that must be £100. I'm curious as to the basis of this - the Act refers to transaction value. I assume it's because items purchased together are presumed to be each subject to it's own contract (and therefore is an individual transaction) even if paid for together.