Section 75 question

LiquidStool

Evening all

I'm looking at making a large purchase using the 0% interest rate offered by the retailer (i believe the finance company is Creation Consumer Finance).

My question is this: I don't need to but, if i was to pay a deposit using my credit card and the balance financed, am i protected by section 75?

Cheers

LABMAN

Both the credit card company and the finance supplier would be liable for a S75 claim.

LiquidStool

So i actually don't need to use my credit card at all then?

FestiveJoy

This is what S.75 of the Consumer Credit Act 1974 (as amended) says:

75. — (1) If the debtor under a debtor-creditor-supplier agreement falling within section 12(b) or (c) has, in relation to a transaction financed by the agreement, any claim against the supplier in respect of a misrepresentation or breach of contract, he shall have a like claim against the creditor, who, with the supplier, shall accordingly be jointly and severally liable to the debtor.
(2) Subject to any agreement between them, the creditor shall be entitled to be indemnified by the supplier for loss suffered by the creditor in satisfying his liability under sub-section (1), including costs reasonably incurred by him in defending proceedings instituted by the debtor.
(3) Sub-section (1) does not apply to a claim:

• (a) under a non-commercial agreement,
• (b) so far as the claim relates to a single item to which the supplier has attached a cash price not exceeding £100 or more than £30,000, or
• (c) under a debtor-creditor-supplier agreement for running-account credit:
  • (i) which provides for the making of payments by the debtor in relation to specified periods which, in the case of an agreement which is not secured on land, do not exceed three months, and
  • (ii) which requires that the number of payments to be made by the debtor in repayments of the whole amount of the credit provided in each such period shall not exceed one.

(4) This section applies notwithstanding that the debtor, in entering into the transaction, exceeded the credit limit or otherwise contravened any term of the agreement.
(5) In an action brought against the creditor under sub-section (1) he shall be entitled, in accordance with rules of court, to have the supplier made a party in the proceedings.
75A - (1) If the debtor under a linked credit agreement has a claim against the supplier in respect of a breach of contract the debtor may pursue that claim against the creditor where any of the conditions in subsection (2) are met.
(2) The conditions in subsection (1) are:

• (a) that the supplier cannot be traced,
• (b) that the debtor has contacted the supplier but the supplier has not responded,
• (c) that the supplier is insolvent, or
• (d) that the debtor has taken reasonable steps to pursue his claim against the supplier but has not obtained satisfaction for his claim.

(3) The steps referred to in subsection (2)(d) need not include litigation.
(4) For the purposes of subsection (2)(d) a debtor is to be deemed to have obtained satisfaction where he has accepted a replacement product or service or other compensation from the supplier in settlement of his claim.
(5) In this section "linked credit agreement" means a regulated consumer credit agreement which serves exclusively to finance an agreement for the supply of specific goods or the provision of a specific service and where:

• (a) the creditor uses the services of the supplier in connection with the preparation or making of the credit agreement, or
• (b) the specific goods or provision of a specific service are explicitly specified in the credit agreement.

(6) This section does not apply where:

• (a) the cash value of the goods or service is £30, 000 or less,
• (b) the linked credit agreement is for credit which exceeds £60, 260, or
• (c) the linked credit agreement is entered into by the debtor wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by him.

(7) Subsections (2) to (5) of section 16B (declaration by the debtor as to the purposes of the agreement) apply for the purposes of subsection (6)(c).
(8) This section does not apply to an agreement secured on land.

Hope that helps.

Enjoy the festive season!

:xmastree::xmastree::xmastree:

chattychappy

LABMAN wrote: »

Both the credit card company and the finance supplier would be liable for a S75 claim.

LiquidStool wrote: »

So i actually don't need to use my credit card at all then?

You need to use it for the deposit in order to put the CC on the hook.
The finance company could also be on the hook if the rest of the deal is financed by them.

So potentially, the merchant, CC and finance company are all on the hook.

ThePants999

The key point is that if you put the deposit on your CC, and finance the rest, you have TWO credit agreements related to this transaction. Ensure the deposit's at least £100, though.

LiquidStool

Thanks all ��

[Deleted User]

ThePants999 wrote: »

Ensure the deposit's at least £100, though.

No need. The £100 minimum relates to the item value, not the deposit, which can be any amount.

ThePants999

D'oh - thanks!

chattychappy

And one assumes the "large" purchase isn't >£30,000