TSB VISA DEBIT CHARGEBACK SCHEME help please

steveyt_2

Hello.... my friend is in a real pickle and needs advise ASAP or pointing in the right direction if you would be so kind.!


Months ago we were recommended (via a close friend) a local car dealer who could supply a car to be used as a private Taxi for my closest friend.!


This man had been in business since March and had sold in excess of over 100 cars that he accuired by selling them to friends, acquaintances or via a strong following on Facebook, Gumtree or Ebay.!


He sourced a car for my friend at the British Car Auctions for £7500 as the taxi had to be new ish but wanted payment up front (being a new business) to which my friend was reluctant to do, but they agreed for both parties to pay £3750 each and then my friend pays the balance on delivery.


Then we hit a problem. ... this dealer said it would take 4 weeks for the car to arrive from BCA in Scotland but a week before the delivery date he had a meeting with the Bank Manager and due to very heavy debts his company was put into admistration. He text my mate and said there is no car as it has been returned but there was a letter and a cheque for him at his door.


My mate rushed to the premises to find the note and cheque but the date on the cheque is dated for a months time. The dealer said in the letter while he owed 5 people money, he had gave notice on a 30 day savings account to cover my mates deposit and one more person. He said if you go through the administrator you won't get anything as the company has no assets but cash the cheque and the money will be there BUT WE THINK WE HAVE LITTLE CHANCE OF GETTING THIS MONEY.


My friend's problem is this..... as he only has a VISA DEBIT card with TSB, he paid the £3750 with that. Now i told him if he paid by Credit card he would be covered under Section 75 but after extensive research we now think he might be covered via the TSB Visa Debit Chargeback scheme for 3 reasons.....


1......the company went into administration although we cant find proof of this yet

2......the goods he paid for did not turn up so he didn't get what he paid for

3......maybe some kind of fraud has taken pace (as after searching info on this man he has had 4 business start ups in the last 8 years and everyone that he was a Director of has collapsed.


We now need to know the following if you can help please.. .!


1.....Will he be eligible to claim under TSB Visa Chargeback Protection Scheme ?

2.....What address does he send his claim and his letter to ?

3..... after looking through the net we cant find any policy documentation as regards TSB Chargeback to clarify that he is eligible. (Any TSB Chargeback links or info would be of great help!!!)


As the info on the net states regards Chargeback..... he has tried everything he can to get the money back direct with the seller. We have both tried every step possible to liaise with this man and get my friends money back but the Premises are locked up, he is off Facebook and Messenger and is not answering emails or calls.!


We have 120 days to claim under the scheme rules but would !like to see if the cheque does clear 1st (in the slim hope it does as why would he do it?) but any advise or people to speak to or info from yourself would be most helpful.!

If its been one big con then Action Fraud and the Police will be notified in due course but my friend just wants his money back 1st

Thanks in advance.

[Deleted User]

See if the cheque clears, as you need to give the retailer a chance to put it right first. Then speak to the bank.

Nebulous2

I don't know about chargebacks, but he wouldn't have been covered for buying a taxi under section 75, as it doesn't cover business transactions.

steveyt_2

..... thanks for that. . . Forget it being a taxi then. He purchased just a car. (You get your taxis 'plate' after). Would he of been covered then ?

SnowTiger

Deleted_User wrote: »

See if the cheque clears, as you need to give the retailer a chance to put it right first. Then speak to the bank.

I think I'd be tempted to put a Chargeback claim in. In thirty days time there might not be a pot of money for the bank to reclaim the payment from.

OP - how was the payment made? Via PayPal? The seller/trader doesn't appear to have been up an running very long and may not have been able to process their own card payments.

steveyt_2

It was done via BACS transfer on my friends debit card. He has an invoice showing payment but because it was an electronic transfer there is no till receipt as such. We think we have more chance of a Chargeback claim if we tr to cash cheque to give dealer time to give money back but if its a con its just giving him more time to dissappear ..... so confused and torn

King_Of_Fools

steveyt wrote: »

It was done via BACS transfer on my friends debit card.

Unfortunately it was a bank transfer and not a debit card payment so chargeback is not possible.

SuperHan

A BACS transfer isn't covered by the chargeback scheme. The chargeback scheme is only where payment is made by debit card, not for transfers made directly from the bank account to which the card is attached.

SnowTiger

steveyt wrote: »

It was done via BACS transfer on my friends debit card. He has an invoice showing payment but because it was an electronic transfer there is no till receipt as such. We think we have more chance of a Chargeback claim if we tr to cash cheque to give dealer time to give money back but if its a con its just giving him more time to dissappear ..... so confused and torn

As others have said, BACS transfers aren't covered by Chargeback - they're similar to simply handing over a wad of cash.

It's difficult to know what to do. Is the trader playing for time or is he genuinely going to raid his personal savings to cover the company's debts?

You mentioned "He said if you go through the administrator you won't get anything as the company has no assets..." Is it a proper limited company or is the trader acting as a sole trader? Was the BACS payment to a company account or a personal account?

IIRC a sole trader is personally responsible for debts accrued by their business.

I'm wonder if in this case administration means personal bankruptcy... or doing a runner.

steveyt_2

To be honest i think it looks like this bloke realised his business was skint and wanted a few grand to start up again elsewhere. I am not sure if it was a business account or personal account that the money was paid into but his silence speaks volumes to me. Any idea where to try if not covered by Cashback scheme

steveyt_2

....... and it was a sole trader and it was a limited company