Refund after cancelling contract

lindabea

Many thanks for all your advise. I may have a further complication with this refund and I could do with some further clarification. When paid my deposit, the guy used a Paypal handheld terminal to process the transaction. I now learnt that Section 75 does not cover Paypal trans although I was not aware of it at the time nor did I know that he was putting the payment through paypal. Can someone please tell me if this restriction would apply to me. The way I see it is that I had no dealing with paypal; my contract was with the man selling me the services. THe fact that he was puttin the payment through paypal was his choice. What I want to understand is if he fails to make the refund have I got ny rights under section 75.

naedanger

lindabea wrote: »

Many thanks for all your advise. I may have a further complication with this refund and I could do with some further clarification. When paid my deposit, the guy used a Paypal handheld terminal to process the transaction. I now learnt that Section 75 does not cover Paypal trans although I was not aware of it at the time nor did I know that he was putting the payment through paypal. Can someone please tell me if this restriction would apply to me. The way I see it is that I had no dealing with paypal; my contract was with the man selling me the services. THe fact that he was puttin the payment through paypal was his choice. What I want to understand is if he fails to make the refund have I got ny rights under section 75.

Unfortunately, if you used paypal, you will have no rights under section 75. You may have a claim that the builder misled you. But your complaint on that point would be with the builder.

wealdroam

lindabea wrote: »

Many thanks for all your advise. I may have a further complication with this refund and I could do with some further clarification. When paid my deposit, the guy used a Paypal handheld terminal to process the transaction. I now learnt that Section 75 does not cover Paypal trans although I was not aware of it at the time nor did I know that he was putting the payment through paypal. Can someone please tell me if this restriction would apply to me. The way I see it is that I had no dealing with paypal; my contract was with the man selling me the services. THe fact that he was puttin the payment through paypal was his choice. What I want to understand is if he fails to make the refund have I got ny rights under section 75.

It appears that your seller was using Paypal's merchant services.

If that's the case then there is no reason why Section 75 of The Consumer Credit Act should not apply.

unholyangel

lindabea wrote: »

Many thanks for all your advise. I may have a further complication with this refund and I could do with some further clarification. When paid my deposit, the guy used a Paypal handheld terminal to process the transaction. I now learnt that Section 75 does not cover Paypal trans although I was not aware of it at the time nor did I know that he was putting the payment through paypal. Can someone please tell me if this restriction would apply to me. The way I see it is that I had no dealing with paypal; my contract was with the man selling me the services. THe fact that he was puttin the payment through paypal was his choice. What I want to understand is if he fails to make the refund have I got ny rights under section 75.

It depends. In order for section 75 to apply, a debtor > creditor > supplier chain needs to exist. Usually paypal will break that chain as the funds go via your account so you're technically paying paypal and its debtor > creditor > paypal > supplier which breaks the required chain.

Wont do any harm to try though, and you can always refer it to the ombudsman if your bank reject your claim. The ombudsman say this about payments via a third-party:

In some cases we see, the consumer has bought online, using a credit card on a website that uses a secure third-party payment system to process credit card payments.

Section 75 may not always apply to transactions made this way, because this payment mechanism can break the chain of arrangements that must be in place between the consumer, the lender and the supplier.

But there are many different types of payment mechanisms used on suppliers' websites and not all of them prevent section 75 from applying. Where there is a dispute on this point, we look at the specific payment mechanism used and decide whether section 75 applies in the particular case.

lindabea

wealdroam wrote: »

It appears that your seller was using Paypal's merchant services.

If that's the case then there is no reason why Section 75 of The Consumer Credit Act should not apply.

Thanks wealdroam for your reply. Yes - the seller was using paypal's merchant service. Can you please help me to understand the distinction of why section 75 may apply in my case and when it doesn't.. Everything I read seems to imply that when paypal or amazon is involved as a third payment, section 75 does not apply.

The seller has until Friday to make the refund, and I'm not optimistic that he will do it. I'm considering going to a solicitor for some legal advise

naedanger

lindabea wrote: »

Thanks wealdroam for your reply. Yes - the seller was using paypal's merchant service. Can you please help me to understand the distinction of why section 75 may apply in my case and when it doesn't.. Everything I read seems to imply that when paypal or amazon is involved as a third payment, section 75 does not apply.

The seller has until Friday to make the refund, and I'm not optimistic that he will do it. I'm considering going to a solicitor for some legal advise

Well contrary to my previous reply, it seems that you should be covered if you are in the same position as the person in the article I have linked to below. If you have a problem perhaps you should speak to paypal to get them to confirm your credit card company should be liable.

See the following article:

http://www.telegraph.co.uk/finance/personalfinance/money-saving-tips/jessicainvestigates/11258422/PayPal-loophole-allows-Barclaycard-to-refuse-credit-card-refund.html

PS The article title, and text in the link, is misleading as Barclays admitted liability in the end.

theonlywayisup

lindabea wrote: »

Thanks wealdroam for your reply. Yes - the seller was using paypal's merchant service. Can you please help me to understand the distinction of why section 75 may apply in my case and when it doesn't.. Everything I read seems to imply that when paypal or amazon is involved as a third payment, section 75 does not apply.

The seller has until Friday to make the refund, and I'm not optimistic that he will do it. I'm considering going to a solicitor for some legal advise

Paypal is both an online payment provider and a merchant payment provider.

If a consumer uses Paypal, they log in and pay using a credit/debit card or bank account linked to their Paypal account. The consumer is making the choice to use Paypal to move their funds. They are sending payments, more importantly, they are sending the payment from their card/bank through Paypal to the receiver.

A merchant (your builder) uses Paypal in a different way, they use it to receive payments. The credit/debit card is being charged in the normal way and the consumer isn't choosing to move the money through a third party first.

You didn't pay by Paypal, your receiver chose to receive the funds that way. Do you see the difference?

lindabea

theonlywayisup wrote: »

Paypal is both an online payment provider and a merchant payment provider.

If a consumer uses Paypal, they log in and pay using a credit/debit card or bank account linked to their Paypal account. The consumer is making the choice to use Paypal to move their funds. They are sending payments, more importantly, they are sending the payment from their card/bank through Paypal to the receiver.

A merchant (your builder) uses Paypal in a different way, they use it to receive payments. The credit/debit card is being charged in the normal way and the consumer isn't choosing to move the money through a third party first.

You didn't pay by Paypal, your receiver chose to receive the funds that way. Do you see the difference?

Thank you very much for your reply. You explained it very well and I understand the difference. Well, lets hope that Barclaycard will see it that way too. Now thanks to all you people, I have a better knowledge to speak to Barclaycard.