Credit card refund refused after unfulfilled contract.

lcperry

I am a second Tesco credit card holder and signed a PPI contract paying by credit card. The company has gone into liquidation without fulfilling their contract. Tesco has refused to refund the payment as it says the debtor agreement was not with the main card holder. Does this mean the second card holder does not have the same rights? I have just paid for a new sofa with this card thinking that I would be covered if the worst happened, but now I am not so sure. Any advice please.

[Deleted User]

lcperry wrote: »

I am a second Tesco credit card holder and signed a PPI contract paying by credit card

PPI contract? No one is selling Payment Protection Insurance these days...

Or did you pay an upfront fee to a Claims Management Company for their financial "services"?
If the latter, I expect this is why Tesco is reticent to refund you.

There will never be any similar problems with consumer spending on material goods like sofas etc.

vuvuzela

Second card holders have historically always had lower rights than the main card holder. https://www.savvywoman.co.uk/530/understanding-your-rights-if-you-have-a-second-card-on-your-account/ has a rundown of the situation, the part for Section 75 states :

1. The person who has the account in their name must claim against the credit card company, if they want a refund under Section 75.
2. They will be able to claim for purchases made by the second card holder, if the purchases were for both of them. Some cards may let them claim for purchases that were purely for the second card holder’s use – but the Financial Ombudsman Service takes the view that you can only claim for purchases made for BOTH account holders, if they were made by the second card holder.

unholyangel

In order to be covered by section 75 protection, the contract would need to benefit the main cardholder/account holder.

However you may still have a few options. Ask the bank if a chargeback is possible as an additional card holder. Alternatively, if what they're selling amounts to insurance, see if there was another company underwriting their policies.

[Deleted User]

unholyangel wrote: »

if what they're selling amounts to insurance, see if there was another company underwriting their policies.

Sounds more like it was an upfront fee for representing the OP in a PPI claim.

Sounds very specific to the individual concerned and likely why a refund has already been refused.

unholyangel

Moneyineptitude wrote: »

Sounds more like it was an upfront fee for representing the OP in a PPI claim.

Sounds very specific to the individual concerned and likely why a refund has already been refused.

Why do you think its more likely to be an upfront fee for a PPI claim than paying for PPI itself? Just curious as I've read it over a few times now and still can't see anything that alludes to it not being PPI.


If it was for PPI itself, OP can also file a complaint with the financial ombudsman although I'm not entirely sure how fruitful it would be if the PPI company have collapsed.

Bogalot

unholyangel wrote: »

Why do you think its more likely to be an upfront fee for a PPI claim than paying for PPI itself? Just curious as I've read it over a few times now and still can't see anything that alludes to it not being PPI.


If it was for PPI itself, OP can also file a complaint with the financial ombudsman although I'm not entirely sure how fruitful it would be if the PPI company have collapsed.

No part of Tesco Bank/ RBS has gone bust. Also you would not "sign a PPI contract paying by credit card", that makes no sense.

Several PPI reclaim companies have however gone into liquidation. OP's post makes much more sense in that context.

[Deleted User]

unholyangel wrote: »

Why do you think its more likely to be an upfront fee for a PPI claim than paying for PPI itself?

Largely because virtually no one still retails PPI these days (apart from on mortgages) and this doesn't sound like a mortgage arrangement.

The OP also refers to a PPI "contract", which usually means a contract to enable a firm to represent in a PPI complaint.

Sounds like the OP has been ripped off by an upfront fee...

unholyangel wrote: »

If it was for PPI itself, OP can also file a complaint with the financial ombudsman although I'm not entirely sure how fruitful it would be if the PPI company have collapsed.

No. The Ombudsman would only be involved if the PPI was mis-sold.

It won't be PPI, though.

unholyangel

Bogalot wrote: »

No part of Tesco Bank/ RBS has gone bust. Also you would not "sign a PPI contract paying by credit card", that makes no sense.

Several PPI reclaim companies have however gone into liquidation. OP's post makes much more sense in that context.

You might want to read the OP again. OP says they used a tesco credit card to pay for the PPI - not that they were buying PPI from tesco.

Why wouldn't you sign a PPI contract and pay for it by credit card? Its basically no different to any other type of insurance/premiums you might pay.

Moneyineptitude wrote: »

Largely because virtually no one still retails PPI these days (apart from on mortgages) and this doesn't sound like a mortgage arrangement.

The OP also refers to a PPI "contract", which usually means a contract to enable a firm to represent in a PPI complaint.

Sounds like the OP has been ripped off by an upfront fee...


No. The Ombudsman would only be involved if the PPI was mis-sold. It won't be PPI, though.

You'd be surprised. PPI is still so widely available that price comparisons (go compare, moneysupermarket etc) offer services for it.

Also, the financial ombudsman are not limited to where PPI was mis-sold - PPI is just another type of insurance/financial product which is regulated the same as the rest.

Bogalot

unholyangel wrote: »

You might want to read the OP again. OP says they used a tesco credit card to pay for the PPI - not that they were buying PPI from tesco.

Why wouldn't you sign a PPI contract and pay for it by credit card? Its basically no different to any other type of insurance/premiums you might pay.



You'd be surprised. PPI is still so widely available that price comparisons (go compare, moneysupermarket etc) offer services for it.

Also, the financial ombudsman are not limited to where PPI was mis-sold - PPI is just another type of insurance/financial product which is regulated the same as the rest.

I'm not sure you understand what PPI is.

The comparison sites offer income protection policies. That's not the same as PPI.

unholyangel

Bogalot wrote: »

I'm not sure you understand what PPI is.

The comparison sites offer income protection policies. That's not the same as PPI.

What do you think PPI stands for?

http://www.financial-ombudsman.org.uk/publications/factsheets/payment-protection-insurance.pdf

what is payment protection
insurance?
Payment protection insurance (usually just
called “PPI” – or sometimes “loan
protection”) covers your loan or debt
repayments in the event of certain problems
– for example, if you are unable to work
because of illness, or if you are made
redundant.
How these insurance policies actually work
– and the range of benefits they offer – can
vary significantly from policy to policy.
Payment protection policies are usually sold
as part of the deal when consumers take out
a loan, mortgage or credit card. But it’s also
possible to buy a “stand alone” PPI policy.

If you look on those comparison sites, you'll see you can get it to protect your income or for specific loan/mortgage agreements.