Section 75 situation

JoeVictor

Hello MSE community,
About 4 months ago i bought a sofa, new. However after only a few weeks one of the supports inside snapped and the center seat started to collapse. I complained to the retailer, but they refused to listen. I then made a claim under section 75, however as there was no evidence that the retailer was at fault (i.e. I could have been jumping up and down on it) the card provider only agreed to pay half the cost as a goodwill gesture. I accepted this thinking I wouldn't get anything else.

However a few days later, after I had left a load of bad reviews about the retailer, they got in contact and also offered to compensate me, for about 40% of the cost of the sofa, again they didn't offer a full refund/replacement as there was no proof they were at fault.

My question is, am I allowed to accept both partial refunds under section 75? I thought if I accepted refunds from both parties then it was considered fraud? But as both have only offered partial refunds and the total amount refunded adds up to less than the initial purchase price is this ok?

chanz4

no its one or the other

derps

You wouldn't be allowed to get a full refund from both the supplier and the card provider but as long as the total amount doesn't exceed 100% of the amount paid that's probably okay.

I assume the terms of your settlement with the credit provider only related to your claim against them? Did it say anything about agreeing to reimburse them if you get anything from the merchant?

magpiecottage

As it failed within six months, the onus is on the retailer to prove it wasn't faulty at outset, not you as the consumer to prove that it was.

I would go back to your credit card provider and tell them to meet the full cost of putting it right or you will go to the Financial Ombudsman Service.

Note that if the firm has written to you saying that you have six months to go to the Financial Ombudsman Service then that limit will normally be strictly enforced.

If they have then ring FOS on 0800 023 4 567 or 0300 123 9 123 on Monday. That will stop the time limit expiring.

JoeVictor

Derps.. That's what I was thinking, as long as I don't "profit" from any refunds and the amount refunded doesn't add up to more than what I paid why does it matter that they both partially refunded?

To be honest, although it may be easy to claim it all back if the 6 month thing is true I'm only a little bit out of pocket as things stand and I'd rather forego the hassle of an Ombudsmans appeal.

The settlement terms with the card issuer didn't mention reimbursing them if I also had a settlement with the retailer.

YorkshireBoy

JoeVictor wrote: »

That's what I was thinking, as long as I don't "profit" from any refunds and the amount refunded doesn't add up to more than what I paid why does it matter that they both partially refunded?

Here's what the FOS say...

So, for example, a customer who pays a deposit for goods - using a credit card issued by firm A - and then pays the balance using firm B's card, has the choice of claiming for the cost of goods and any consequental losses against:

• the supplier of the goods;
• firm A;
• firm B; or
• all three.

But of course, the customer cannot recover the same money twice.


http://www.financial-ombudsman.org.uk/publications/ombudsman-news/31/creditcards-31.htm

JoeVictor

But I wouldn't be claiming the same money twice, m claiming the first half of the balance from A and the second half from B.

I'll call the card company and let them know what's happened. I don't want to get in trouble if they find out by themselves that the retailer has also partially refunded.

YorkshireBoy

JoeVictor wrote: »

But I wouldn't be claiming the same money twice, m claiming the first half of the balance from A and the second half from B.

I was backing up your "thinking"...obviously not clearly enough!

JoeVictor

YorkshireBoy wrote: »

I was backing up your "thinking"...obviously not clearly enough!

Oh right, sorry!

Think I'll call the card company anyway, I'm now worried they'll find out the retailer has refunded too.

chattychappy

JoeVictor wrote: »

Think I'll call the card company anyway, I'm now worried they'll find out the retailer has refunded too.

Why bother? This is the same card company that was jointly liable for this contract and refused liability because you didn't prove it - when really as the contracting party "they should have known" or could have been more helpful. (In practice they never are cos s75 is onerous on CCs and it's an easy way not to pay out.)

Bear in mind also, that damages for breach of contract are not limited to the value of the transaction. Depending on the costs involved (eg time dealing with this, time off work waiting for deliveries/pick up etc), you might be entitled to more than the value of the transaction anyway.

If there were any specific terms you agreed to when accepting the money, that might be an issue. Else you are doing nothing wrong and given their attitude I wouldn't worry at all. They were always free to meet your claim in full at the time you made it.

JoeVictor

Is the card provider likely to contact the retailer for any reason (to demand the payment back etc)?