Section 75 and the FOS

ThreadDefender

What is the proper process when your credit card company rejects a Section 75 claim?

Is it necessary to challenge the decision with the credit card compnay directly before going to the Ombudsman, or can you go straight to the FOS?

[Deleted User]

You'd need to exhaust their complaints procedure, as with any complaint.

derps

The FOS adjudication process can also take a fair while so prepare for the possibility of settling in to wait. Make sure you push the card provider for a final response so they can't drag out the complaints process too much more.

In the meantime, make sure you collate all of your evidence clearly and make a good detailed timeline of events for the FOS. The credit card provider should provide you with information on how to refer to the FOS when they feel they've done what they can for you.

There are some posters on here that can give good advice on your claim should you ever need it as well.

ThreadDefender

Thanks to the posters above!

I'm also curious about how common it is for credit card companies to reject Section 75 claims?

Is it par for the course, to avoid a payout, in the hope that the claimant gives up at some point along the way?

YorkshireBoy

ThreadDefender wrote: »

I'm also curious about how common it is for credit card companies to reject Section 75 claims?

It's not uncommon, going by the number of case study examples on the FOS website going back several years. However, the FOS take a dim view of card providers giving their customers the runaround.

Is it par for the course, to avoid a payout, in the hope that the claimant gives up at some point along the way?

It could be viewed that way, but in light of what I said above they won't want to mess you around too much if their backs are against the wall.

You do have the option to take the card provider to court though. However, last I heard you couldn't then refer to the FOS if litigation was unsuccessful?

[Deleted User]

All of this assumes you have a valid case, of course...

eskbanker

ThreadDefender wrote: »

I'm also curious about how common it is for credit card companies to reject Section 75 claims?

Without any statistical evidence to back this up, I'd suggest it's pretty common - for a start the majority of s75 claims will be the result of a dispute between a customer and a retailer, so it would be unusual for the retailer to always be in the wrong, as is shown by some misguided posters on here, such as this thread from last week and others where they believe it's a substitute for travel insurance ("I couldn't use a booked flight, can I claim", etc).

Even where the retailer is in the wrong, there are so many technicalities that can work against the consumer:

• Item value between £100 and £30K
• PayPal (and perhaps other payment processors) excluded
• No intermediaries such as travel agents
• Primary cardholder needing to benefit from purchase (possibly debatable)
• etc

So, coupled with the inevitable commercial desire not to pay out if they can avoid it and their irritation that the legislation predated widespread use of credit cards for routine purchases, it's hardly surprising that many claims will be rejected....

The FOS do publish stats about the complaints they adjudicate on at http://www.ombudsman-complaints-data.org.uk/data.aspx and excluding PPI claims, the average for all others is only about 30% in favour of the consumer. I have no idea if this is representative for s75 claims referred to them but wouldn't be surprised....

chattychappy

ThreadDefender wrote: »

I'm also curious about how common it is for credit card companies to reject Section 75 claims?

Aside from rejections, I expect many just give up. Eg TV blows up. Retailer has disappeared. Phone call centre. CC demands "expert report". Cardholder doesn't know where to go or who to ask. Other things become more important. Gives up.