Credit card protection for a new kitchen.

Markaw

Advice and thoughts on the folowing much appreciated.
I am self building a new house, although the sale of our old house and savings will (I hope) cover the build, purchases with credit cards will be an important tool not least for its purchase protection. I am paying for the new kitchen soon, I wanted to know from the company the level of protection of my deposit, stage payments and final payment that they provide. I was told nothing was provided other than my consumer rights! I was however told that I could pay as little as £100 on my credit card (with a 2.5% charge to be made) and that the whole kitchen purchase price (less than £30,000 inc appliances and fitting) would be covered by the protection that the card provides. Is that correct?
I am sure this has been asked before but I was unable to find any such posts.

Thanks

[Deleted User]

Yes. It's called section 75. You would only need to pay £1 in a card.

But it will depend on whether it's seen as a single transaction for a kitchen or individual purchases of appliances, labour etc.

bigadaj

You should be ok as zx81 says, I would just add that this is assuming the kitchen is both a single transaction and also you aren't for example paying them as a contractor for the entire build.

Banks don't like section 75 as it is an anomaly from old hire purchase agreements, so they will try and use any legitimate reason for getting out of responsibilities, and so if this wereparg of a larger contract over £30k then they would try and argue against their responsibilities.

grumbler

Markaw wrote: »

I am sure this has been asked before but I was unable to find any such posts.

MSE: Section 75 refunds

Markaw

Thanks for such a rapid reply!
There is one invoice amount including all appliances and fitting as well as the units and worktops. There are however individual stage ayments to be made...deposit to hold prices, comencement of manufacture, (ie my supplier telling the kitchen manufacturer they have an order) delivery payment when its all on site and the final payment upon completion of instalation.

I was told that just £100 on the card would protect due to issues of insolvancy (themselves or the kitchen manufacturer), lack of supply as well as the usual consumer rights stuff relating to damaged or faulty goods etc.

From what you have said, all I would need to do is pay £1 and the same rights and protection would be provided.

eddddy

Markaw wrote: »

I was told that just £100 on the card would protect due to issues of insolvancy (themselves or the kitchen manufacturer), lack of supply as well as the usual consumer rights stuff relating to damaged or faulty goods etc.

From what you have said, all I would need to do is pay £1 and the same rights and protection would be provided.

To be more precise, section 75 makes the CC company jointly liable for breach of contract or misrepresentation.

So, for example, if you pay the company to install a kitchen and they fail to install the kitchen - they are in breach of contract. (It doesn't matter whether it's because the company's gone bust, or the owner's done a runner with your money, or they just can't be bothered.)

Plus there are implied contract terms - e.g. the kitchen must be of satisfactory quality and fit for the purpose intended.

(But all this assumes that the transaction is actually covered by s75.)

chanz4

Also will depend if listed as individual items on the invoice