Ombusman appeal for £12,250 successful - Section 75

onyx911

I posted this Summer about a Section 75 claim that I had taken to the Ombudsman and lost. I decided to appeal and several months later I have finally got a decision and the appeal is upheld. Tesco Personal Finance now have to pay not only the £12,250 we claimed, but also £1,950 in interest.

Full facts of the dispute in this thread.

https://forums.moneysavingexpert.com/discussion/5661927

https://forums.moneysavingexpert.com/discussion/5661927

onyx911

Yep, sorry. Didn't think I was spamming and wasn't intending to spam. A lot of people commented on the original post and asked to be kept updated on the outcome. I didn't know how to edit the original title to make it clear I was posting an outcome. I got a lot of helpful advice and wanted to say thanks and also hopefully encourage other people in future to purse an appeal if they ever don't agree with a section 75 complaint outcome. Incidentally, we were originally encouraged by a very similar appeal on Money Saving Expert TV show.

Apologies for the inconvenience of causing you to report this post.

theonlywayisup

onyx911 wrote: »

Yep, sorry. Didn't think I was spamming and wasn't intending to spam. A lot of people commented on the original post and asked to be kept updated on the outcome. I didn't know how to edit the original title to make it clear I was posting an outcome. I got a lot of helpful advice and wanted to say thanks and also hopefully encourage other people in future to purse an appeal if they ever don't agree with a section 75 complaint outcome. Incidentally, we were originally encouraged by a very similar appeal on Money Saving Expert TV show.

Apologies for the inconvenience of causing you to report this post.

tykesi isn't the forum police, so don't worry. I was grateful for a clear update. Well done by the way.

hollydays

Congratulations

onyx911

theonlywayisup wrote: »

tykesi isn't the forum police, so don't worry. I was grateful for a clear update. Well done by the way.

Yes, thank you! I honestly thought it was easier to give a short update and anyone that wants to read back at the old post could do so. Thank you so much.

theonlywayisup

onyx911 wrote: »

Yes, thank you! I honestly thought it was easier to give a short update and anyone that wants to read back at the old post could do so. Thank you so much.

Thank you. It is so good to see a protracted situation like yours go through the various stages, have advice given and eventually win. Most importantly you've reported back. I wish everyone would do that.

Well done you. The drinks are on you tonight!

molerat

Feel sorry in for Tesco in a way. A S75 claim like this, although in line with the law, is taking the !!!! - Tesco getting stiffed for £14K when only £257 was put through the credit card. Cases like this will likely result in pressure for a change to the CCA.

onyx911

There is a misconception that the bank pays the award under section 75. They claim it back from the retailer. There will be instances where the retailer has gone bust and that's not possible but that's not the case here. The retailer told us at the outset he would comply with the section 75 process as in if Tesco asked for the money back he would return it. Which means if Tesco had made the correct decision in the first place they would have saved themselves the £1900 interest. Martin Lewis said on his programme that banks will refuse to pay out even when the complaint is valid under section 75 in the hope that the consumer won't complain. Hard to sympathise with Tesco when they could have settled this last year.

molerat

But is there a legal relationship between Tesco and the retailer over this. Yes the retailer may owe Tesco the £257 they had but can they be forced to pay the remainder ?

arcon5

They will probably pursue the retailer through legal channels.

Shame really since op was the one that completely and utterly messed the retailer about and doesn't deserve 100% back.
It's a shame complicated cases like this cannot be transferred to the courts to be overseen by judges

onyx911

molerat wrote: »

But is there a legal relationship between Tesco and the retailer over this. Yes the retailer may owe Tesco the £257 they had but can they be forced to pay the remainder ?

That's a fair question and I'll try to find you a source. I imagine in the same way that using a credit card creates a legal relationship between the consumer and the credit card company it may do the same with credit card company and retailer. I have read that they pursue the retailer where economically viable to do so.