Credit cards that allow Section 75 claims against PayPal?

lisyloo

Which law do you think paypal are dodging?
I've actaully had about 5 claims by paypal and 2 from credit cards over the years, but I've not asked them to do anything I'm not entitled to.

[Deleted User]

eBay, which owns PayPal, has set the system up so that your normal rights either don't apply or are impossible to enforce. That is particularly true with foreign sellers.

thenudeone

In my experience, Halifax point blank refuse all s75 claims, however genuine.

When I tried to claim, my final response from them was effectively that the only thing that would force them to pay out was a court judgement. Thankfully in my case the legal cover provided with my house insurance paid for a solicitor to contact the retailer who eventually refunded me, so it never needed to get that far.

I would never again use a Halifax card for something costing over £100.

YorkshireBoy

DELETED USER wrote:

Well, I'll try the ombudsman anyway. At least it costs Halifax money if I do so.

No it doesn't.


Halifax will only be charged the £550 fee if your case is passed up to an adjudicator, and it won't need to be because the Law is very clear. There are also examples and case studies on the FOS website of people in just your position...so they've stated their position quite clearly.


All you'll do by taking it to the FOS is slow down genuine claims by other people.

Money-Saving-King

DELETED USER wrote:

eBay, which owns PayPal, has set the system up so that your normal rights either don't apply or are impossible to enforce. That is particularly true with foreign sellers.

You don't need it. eBays 45 day money back guarantee goes way above any UK laws as far as consumer protection goes no matter what country you purchased from.

lisyloo

eBay, which owns PayPal, has set the system up so that your normal rights either don't apply or are impossible to enforce

Which rights (previously referred to as laws) are these please?

ebay and paypal cannot dodge the UK law and wouldn't be allowed to if there was a genuine case to answer.
Of course if you trade in a different country then you might be subject to that countries law - in which case why don't you go to a shop and buy your goods in the UK?

Davie2909

That's not possible as Paypal is classed as a cash advance so you cannot claim on S75

lisyloo

as Paypal is classed as a cash advance

For charging purposes it's treated as a purchase.
However the 3rd party is paypal not the end supplier.

eddddy

According to Which? on 25 June 2011:

Online purchases made through Paypal can be subject to section 75 protection if something goes wrong, according to legal advice obtained by Which?

link: http://www.which.co.uk/news/2011/06/are-your-paypal-purchases-protected-256720/

And more specifically (again according to Which?) :

If you use your credit card to pay for something through PayPal and the funds go direct to the seller, then as long as the company you're buying from has a 'Commercial Entity Agreement' with Paypal you may still be able to claim under Section 75 for any misrepresentation or breach of contract.

link: http://www.which.co.uk/consumer-rights/regulation/section-75-of-the-consumer-credit-act#link-5

BUT according to the OFT newsletter of July 2011 this has never been tested in court:

The July 2011 edition of Which? magazine states that 'online purchases made through PayPal can be subject to section 75 protection if something goes wrong.'
...
...
The OFT is not aware of this specific point having been tested in court as yet. However, if anyone is aware of any relevant court judgements, then we would be very interested to hear of them.

link: http://www.oft.gov.uk/shared_oft/credit-newsletters/newsletter-0711.pdf (Page 3 - PayPal and S75 protection)

So "DELETED USER", if you feel like testing this out in court, I'm sure many paypal users (and the OFT) would be very grateful. But I suspect Halifax would defend it rigourously - to stop the flood gates openning.

(Or perhaps Halifax would quietly settle out of court, if they thought they might lose, to avoid a precedent being set.)

tinkerbell28

In some cases we see, the consumer has bought online, using a credit card on a website that uses a secure third-party payment system to process credit card payments.

Section 75 may not always apply to transactions made this way, because this payment mechanism can break the chain of arrangements that must be in place between the consumer, the lender and the supplier.

The FOS stance. So good luck, think you'll need it.