Section 75 Credit Card Payment Question

MOPI

Hi,

I am considering purchasing a brand new car from an online car broker, which requires me to place my order via the brokers website and provide my credit card details to the broker to facilitate the payment of a £500 deposit from my credit card. However my details are then passed onto the dealership that will be providing me with the car, who initially process the £500 deposit transaction, so technically the dealership take the money from my account. Once the car has been ordered etc the dealership then take the remaining balance for the car (minus the £500 deposit), which I plan to pay using bank transfer or debit card.

I just wanted to check that I would be covered under section 75 of the consumer credit act prior to purchasing. My understanding is that the £500 deposit payment on the credit card should ensure that I am protected for the whole amount. However I am a little concerned that there might be a loop hole due to the fact that I will be providing the broker with my credit card details for the deposit, therefore as they are not the ones entering into the contract with me I will not be protected?

Also if I am protected under section 75 does this cover if the vehicle is not the requested spec/model on delivery?

I hope that makes sense, if not please just ask and I will clarify further.


Thanks in advance!

visidigi

Is the third party broker a uk organisation based in the uk?

The third party are merely brokering a deal with the dealer, you a paying the dealer direct and the car will be ordered in your name. If this is the case then you will be covered for the whole amount in your card if you pay at least £1 on the credit card.

Obviously if the car is not to spec to then this will be down to the dealer to solve, I guess by the letter of the s75 process you are covered, but the dealer would almost certainly sort you out before you got to the process of a s75 claim.

wealdroam

I really don't know the answer to your question, but why not pay £10 (say) of the balance by credit card?

That way, all of the purchase price would be covered by S75.

MOPI

visidigi wrote: »

Is the third party broker a uk organisation based in the uk?

The third party are merely brokering a deal with the dealer, you a paying the dealer direct and the car will be ordered in your name. If this is the case then you will be covered for the whole amount in your card if you pay at least £1 on the credit card.

Obviously if the car is not to spec to then this will be down to the dealer to solve, I guess by the letter of the s75 process you are covered, but the dealer would almost certainly sort you out before you got to the process of a s75 claim.

Hi, thanks for the reply. The car will be ordered in my name and £500 will be paid directly to the dealer. Also the broker is a UK organisation, so hopefully I should be covered. I am just going to run it past my credit card company to make sure but sounds like it should be covered.

Thanks for everyone's help!

mo786uk

You need to be careful it does not become a 4 way transaction and the dealer DIRECTLY takes the money.

Agricolae

Yes, be careful. I am suspicious of this arrangement for no real reason other than a hunch.

You need to consider:
1) Who are you paying?
2) Who is your contract with?
3) What is the wording of the contract?