Section 75 Questions

jonnyt44

Hi Everyone,

Would it be possible to pay for an item (£100 or greater and less than £30,000) with a credit card, and pay the balance off in full almost immediately, and still avail of Section 75 protection? This is like using the card solely for the added protection.

Also, the the project have to be for me? For example, I bought something as a gift for my brother. Would this be covered?

Thanks

InsideInsurance

Yes, you have still paid by a regulated credit product. You dont need the credit to be repaid over a certain period for it to qualify as long as it is a regulated credit product (which all credit cards are)

Hominu

jonnyt44 wrote: »

Also, the the project have to be for me? For example, I bought something as a gift for my brother. Would this be covered?

If you bought it, the protection is for you, nobody else.

But all this means is that your brother can't claim on S75. There's nothing stopping him giving it back to you and yourself claiming.

thenudeone

A purchase is covered even if the card is paid off straight away.

But if you use your card, your brother isn't party to the credit contract so can't enforce any rights under it.
If it's a reasonably portable item which fails, he could simply give it back to you and you could claim.
If it's something which benefits him specifically such as a holiday or building work on his house, for example, you would be unlikely to succeed in a claim, because you would not have benefit or been party to the original purchase contract, but this would be a grey area legally. Obviously he could take legal action against the supplier himself, but he could not use s75 to hold the card company liable.