Section 75 cover

citykid5

I'm looking at buying a used car for my son.
If I pay a deposit of £100 by credit card, then my son pays the balance on his debit card and the car is registered in his name, would he still be able to make a claim if the worst was to happen under section 75? Or would it be best if I payed the balance on my debit card for the car?

YorkshireBoy

I may be out of touch with section 75 but I don't think 'gifts', and purchases for the benefit of others are covered, ie where the beneficiary is not the debtor (in the D-C-S relationship necessary for section 75).

It may be that to benefit from section 75 you have to buy the car and be the legal owner, ie payment must come from you and the invoice made out in your name.

It's also not necessary for the credit card payment to be over £100...just that the item cost financed must be over £100 (and less than £30K). In other words, and at it's extreme, even a 1p credit card deposit would suffice!

grumbler

£100 is fine, even £1 would be. However, even if your son were a secondary cardholder on your CC and paid himself, applicability of s75 would be very questionable:
>Section 75 refunds
>> Goods/services paid for by a secondary cardholder.

It's a different question that for a second-hand car, even if applicable, it might be almost useless in practice as your rights against the seller are very limited and s75 doesn't give you any extra rights except claiming from the CC company instead of the seller. Many people have over-optimistic expectations about the 'standards' that a second-hand car is supposed to satisfy, especially if the manufacturer's warranty expired.

citykid5

Thank for your replies, much appreciated

bris

The short answer is no, your not covered for buying things for other people.


The long answer is in the circumstances surrounding the purchase, keeping it short, there is scope to be covered if you get use from the vehicle, i'e you need him to taxi you about where you can show you get full benefit from the car. having youe own car will however completely rule this out and you would need to prove you use his services regularly.