PayPal and Section 75

strangelove

Hi, just hoping for some advice.

I purchased a tablet computer as a gift for my wife. The tablet is faulty and has never worked, but we had missed the right to a full refund (rather than repair) as I had purchased it a few weeks before we discovered this.

After weeks of emailing the supplier (in China) and getting nowhere, I raised a claim with my credit card company.

This has been dragging on for weeks, and they have finally turned around and said that because the payment went via PayPal (this was the background payment system used by the website, I did not log into my paypal account) that they are not liable under section 75.

However, due to the item being a gift and then the delays from the supplier and my credit card company, I have missed PayPal's 45 day limit on refund claims.

Is there anything I can do, or do I just have to remain over £200 out of pocket?

Many thanks

wealdroam

strangelove wrote: »

Hi, just hoping for some advice.

I purchased a tablet computer as a gift for my wife. The tablet is faulty and has never worked, but we had missed the right to a full refund (rather than repair) as I had purchased it a few weeks before we discovered this.

After weeks of emailing the supplier (in China) and getting nowhere, I raised a claim with my credit card company.

This has been dragging on for weeks, and they have finally turned around and said that because the payment went via PayPal (this was the background payment system used by the website, I did not log into my paypal account) that they are not liable under section 75.

However, due to the item being a gift and then the delays from the supplier and my credit card company, I have missed PayPal's 45 day limit on refund claims.

Is there anything I can do, or do I just have to remain over £200 out of pocket?

Many thanks

Your CC Co are right.

There needs to be a direct link between the credit supplier and and the merchant.
Paypal being in between them, has broken that link.

Looking at it another way, Paypal has done exactly what you asked them to do... paid money to the Chinese company.
So there is no good reason for the CC Co to reclaim the money from Paypal.

Sorry, but unless you want to involve China's legal system, I fear you will need to write off this money.

Bantex_2

Just buy from a UK company in future. You are protected and also keep people in jobs. Worth a few extra quid.

strangelove

Thanks Wealdroam, I thought that would be the case, just always worth picking your more knowledgable brains before giving up!

bris

Just so you know for future reference if you buy a gift on a credit card then you can't claim for S75 if anything goes wrong, so never disclose it as a present for your wife.

InsideInsurance

bris wrote: »

Just so you know for future reference if you buy a gift on a credit card then you can't claim for S75 if anything goes wrong, so never disclose it as a present for your wife.

The gift is irrelevant, its the fact they paid PayPal who in turn paid the vendor that is the issue. The S75 protection would only revolve around PayPal fulfilling their obligation to pay the vendor.

bris

InsideInsurance wrote: »

The gift is irrelevant, its the fact they paid PayPal who in turn paid the vendor that is the issue. The S75 protection would only revolve around PayPal fulfilling their obligation to pay the vendor.

I know, hence the "for future reference" as he was trying to claim from S75 for a gift.

shaun_from_Africa

bris wrote: »

Just so you know for future reference if you buy a gift on a credit card then you can't claim for S75 if anything goes wrong, so never disclose it as a present for your wife.

There is nothing written down in law that states that gifts purchased on credit cards are not covered by S75.
What is often stated by credit card companies is that purchases that are made by additional card holders (ie, not the primary account holder) are not covered by S75 if the purchase does not benefit the primary card holder.

This was confirmed by the financial ombudsman (case 62/02)
http://www.financial-ombudsman.org.uk/publications/ombudsman-news/62/62-consumer-credit.htm#cs2
and there are p[lenty of other websites that state exactly the same.
http://www.choose.net/money/guide/faqs/section-75-additional-cardholders.html

bris

shaun_from_Africa wrote: »

There is nothing written down in law that states that gifts purchased on credit cards are not covered by S75.
What is often stated by credit card companies is that purchases that are made by additional card holders (ie, not the primary account holder) are not covered by S75 if the purchase does not benefit the primary card holder.

This was confirmed by the financial ombudsman (case 62/02)
http://www.financial-ombudsman.org.uk/publications/ombudsman-news/62/62-consumer-credit.htm#cs2
and there are p[lenty of other websites that state exactly the same.
http://www.choose.net/money/guide/faqs/section-75-additional-cardholders.html

Then you need to look harder, its well known that goods purchased by CC have to be for the benefit of the cardholder as gifts are not covered by S75, do a little more digging.

frugal_mike

bris wrote: »

Then you need to look harder, its well known that goods purchased by CC have to be for the benefit of the cardholder as gifts are not covered by S75, do a little more digging.

I could have sworn that the last time I looked up the content of the Consumer Credit Act it had words to that effect, but checking again now it doesn't. It doesn't put any restrictions on the purpose of the purchase, either in Section 75 or Section 75A.

shaun_from_Africa

bris wrote: »

Then you need to look harder, its well known that goods purchased by CC have to be for the benefit of the cardholder as gifts are not covered by S75, do a little more digging.

Just because you think something is well known doesn't make it correct.

If S75 doesn't apply to gifts when those gifts have been purchased by the primary account holder, surely you can find something to confirm this other than simply saying that it is "well known".

Irrespective of the goods being given away as a gift, if the primary account holder makes the purchase than the chain of:
account holder/customer-credit provider-retailer is intact and thus no reason for S75 not to apply.

If an additional cardholder makes the purchase for goods intended for a 3rd party then the chain becomes: account holder-customer-lender-retailer and S75 no longer applies.