Gifts and Section 75

BHan123

Hi
I purchased a faulty gift on credit card, the credit card company claims that section 75 only covers purchased which primarily benefit the cardholder.
Are gifts covered by section 75? If so how can I get them to reconsider their decision?

[Deleted User]

They’ve given you their answer.

Not much you can do

Terry_Towelling

S75 states that if a debtor has a claim against a supplier for breach of contract then he will have a like claim against the creditor.

I think your issuer is saying when you give something as a gift, it is not you (the debtor) who has the claim against supplier, it is the receiver of the gift that has the claim. So, debtor and claimant are not the same person and S75 doesn't cover you.

Whether your rights might be restored if the receiver of the gift rejected it as faulty and handed it back to you I do not know - but I doubt it.

If you have purchased faulty goods your issuer may be able to process a Chargeback for defective merchandise. This chargeback has stringent requirements (and I can't say from the information you have provided whether you can meet them) but the fact it was a gift is not something that precludes its use as a remedy.

Talk to your issuer about it. Depending whether it is a Visa or a MasterCard purchase you may (amongst other things) be required to return the goods to the retailer (at your own expense and risk) or you may just have to demonstrate that you've offered to return them.

All is not lost - yet

BHan123

Terry_Towelling wrote: »

Whether your rights might be restored if the receiver of the gift rejected it as faulty and handed it back to you I do not know - but I doubt it.

If you have purchased faulty goods your issuer may be able to process a Chargeback for defective merchandise. This chargeback has stringent requirements (and I can't say from the information you have provided whether you can meet them) but the fact it was a gift is not something that precludes its use as a remedy.

Talk to your issuer about it. Depending whether it is a Visa or a MasterCard purchase you may (amongst other things) be required to return the goods to the retailer (at your own expense and risk) or you may just have to demonstrate that you've offered to return them.

All is not lost - yet

It was a car for my daughter. The car got towed back to the garage after one week with it needing a new engine. Asked for a refund, they agreed and then did not pay. The garage had the car for months after whilst this claim was being processed. Only a few months ago, the car was seized as the garage had not paid a high court writ and they have now gone into liquidation. Currently going through the process of visa chargeback, but the credit card company are dragging their feet about it

eco_warrior

The main problem with gifts is that they are often bought by the cardholder (ie you) but the invoice/contract is in the gift receivers name (especially common with cars).

If the contract is in her name then you’d likely need to prove a joint benefit existed (shared use of car) to qualify for a review under s75.

I’ve dealt with a few visa chargebacks for used cars and lost them. Chargebacks and used cars are as hard as it gets in my experience.

Hopefully it’s not the case for you.

Terry_Towelling

Just noticed you have two threads going on this one. The thread title to this one makes it clear that you did buy the car as a gift and so your daughter is/was the legal owner. That probably rules out a S75 claim (in my opinion only). I suspect you may also be too late to make a Chargeback for defective merchandise (if such a right existed).

Any card company worth its salt should have considered the Chargeback position in parallel with the S75 claim. If they didn't, that might give you a 'foot in the door' to complain. If a Chargeback right did exist when you first claimed using S75, you might be able to complain that the card company had a duty to consider this at the time, and their failure to do so was 'negligent' and means you haven't been treated fairly.

This may be just fanciful thinking on my part (don't all shout at once) but I'm not sure you have many options left right now.

18cc

I do not understand why the purchase of a gift is not entitled to section 75 protection..

Presumably she bought a car using credit and at that point became the legal owner of a car and a credit agreement existed in her name for the purchase price

the fact that subsequently she decided to give the car to her daughter should have no relevance on the section 75 protection

however sounds like i am wrong and would like to know why!

eco_warrior

18cc - too many presumptions in your post. As I said in my previous post, it’s about the paperwork/contract.

Gift purchases usually break the DSC chain for S75. Not always though so it’s not a straight yes/no.

SnowTiger

BHan123 wrote: »

I purchased a faulty gift on credit card, the credit card company claims that section 75 only covers purchased which primarily benefit the cardholder.
Are gifts covered by section 75? If so how can I get them to reconsider their decision?

BHan123 wrote: »

It was a car for my daughter.

BHan123 wrote: »

Yes my mom bought the car for me.
Everything has been done through my moms name, I cant help but feel guilty that she has had all of this so want to gather advise on getting her money back. If we cannot, then I will pay the credit card.
The credit card company claims that because it was bought as a 'gift' for me, with insurance details showing me as the only driver, she had no benefits from it therefore section 75 does not apply.
I cannot understand how, if you bought something faulty, present or not, they could reject the claim!

BHan123 wrote: »

Section 75 claim rejected- purchased on mums credit card but I am the only/primary user.

"I purchased a faulty gift on credit card"; "Yes my mom bought the car for me"; "purchased on mums credit card but I am the only/primary user".

Does not compute.

Are you Norma or Norman Bates?

My thinking: son or daughter can't get a credit card in their own name, so they use Mummy's card (with her permission).

Car purchase has gone wrong and they're trying to pretend the purchase was made by Mummy when, in reality, it was made by son/daughter using Mummy's card.

What does Sainsbury's say about Mummy and son/daugher keeping it in the family?:

https://www.sainsburysbank.co.uk/~/media/files/pdf/cca-sainsburys-low-bt-fee-card-33.pdf:

14 Security

do not allow anyone else to use your card, pin or other security information.

eco_warrior

The previous post is quite bizarre. The situation of a parent paying for a car is extremely common.

Although the multiple threads on this one topic are also bizarre.

SnowTiger

eco_warrior wrote: »

The previous post is quite bizarre. The situation of a parent paying for a car is extremely common.

Although the multiple threads on this one topic are also bizarre.

Hmmm. I see.