Would I be covered by Section 75?

recycling

Hoping to get an Empty Property Grant from our local council towards some replacement windows and doors. This becomes payable directly to the contractor if and when the property is re-occupied, which must be not later than 6 months from grant application being accepted. Windows companies I've spoken to seem understandably reluctant to wait up to 6 months for their money, and we're considering proposing to pay in full on completion of the work, with written agreement that the company would repay us the grant when they receive it from the council.

If we pay by credit card and the company went bust or for any other reason didn't pay back the grant, would Section 75 protect us?

jonesMUFCforever

You pay th window company directly by credit card you are covered for defective working or window company going bust etc.
You will have no claim against anybody if you don't get the grant.

If you don't get the grant you will have to pay the credit card company for the amount owed.

I do not think S75 will cover you should the window company goes bust or a dispute arises which stops them paying you.

Why not get the grant accepted but get the work done just before you are ready to move into the property?

recycling

jonesMUFCforever wrote: »

You pay th window company directly by credit card you are covered for defective working or window company going bust etc.
You will have no claim against anybody if you don't get the grant.

The terminology in the CCA is "any claim against the supplier in respect of a misrepresentation or breach of contract" so if the repayment of the grant was promised in writing wouldn't it fall under "breach of contract"? I'd see the situation as analogous to a shop promising cashback on an item and failing to pay it. (In case I didn't make it clear in my OP, I wouldn't be expecting any payment from the company if the council didn't pay them)

recycling

jonesMUFCforever wrote: »

Why not get the grant accepted but get the work done just before you are ready to move into the property?

Because we're under pressure from the council because of the appearance of the property, and also to improve security.

chattychappy

I think in priniciple it could work, but the contract would have to be drawn up clearly. The gist would be:

Hello Mr Window company, I'm paying for these windows on my credit card on the basis that if and when you receive monies from the council in respect of this transaction you will pay them over to me.

dresdendave

chattychappy wrote: »

I think in priniciple it could work, but the contract would have to be drawn up clearly. The gist would be:

Hello Mr Window company, I'm paying for these windows on my credit card on the basis that if and when you receive monies from the council in respect of this transaction you will pay them over to me.

But if for any reason the council failed to pay the grant to the window company, then the OP would have no comeback against the window company?

unforeseen

I don't see that. The grant has no connection to the the payment. S75 requires a direct relationship between the debt and the product.

The only recourse would be a contract between yourself and the window company agreeing to the repayment and using MCOL if the payment is not made.

If the window company have any sense they will not touch that arrangement with a bargepole since they have no control of applying for/receiving the grant. Also would the grant application be successful as the work would have already been paid for/ completed.

eddddy

I'd agree with chattychappy's approach.

I wonder if people are misunderstanding the OP's plan? I think the OP wants to say to the window co...

"I'll pay you for the windows, but if the council eventually pays you for the windows as well (i.e. you've been paid twice), please refund my payment and keep the councils payment."


The OP's worry is that the window firm might get paid twice, then go bust before refunding the OP's payment.

recycling

dresdendave wrote: »

But if for any reason the council failed to pay the grant to the window company, then the OP would have no comeback against the window company?

Nor would I expect to have.

unforeseen

eddddy wrote: »

I'd agree with chattychappy's approach.

I wonder if people are misunderstanding the OP's plan? I think the OP wants to say to the window co...

"I'll pay you for the windows, but if the council eventually pays you for the windows as well (i.e. you've been paid twice), please refund my payment and keep the councils payment."


The OP's worry is that the window firm might get paid twice, then go bust before refunding the OP's payment.

But the OP is expecting the CC to cover under S75 if the company don't refund which I don't think they will do as the service has been provided, The grant is a secondary issue outside the remit of S75

recycling

unforeseen wrote: »

I don't see that. The grant has no connection to the the payment. S75 requires a direct relationship between the debt and the product.

But if repayment of the grant is made part of the contract for the supply of the windows, wouldn't failure so to do constitute a breach a contract and so be covered under S75?

If the window company have any sense they will not touch that arrangement with a bargepole since they have no control of applying for/receiving the grant. Also would the grant application be successful as the work would have already been paid for/ completed.

I'd only require them to pass it on if they received it. The grant has to be approved before work commences, but it remains subject to any other work that the council requires done also being completed and the property being reoccupied within six months of grant approval. Factors outside the window company's control.

The scheme is supposed to work by my paying only the excess over the grant on completion and the company getting and keeping the grant after reoccupation. Although it's not spelt out in the grant scheme literature, I'm assuming that if the grant isn't paid owing to a failure on my part I then become liable to the company for that amount.