Gifts and Section 75

18cc

If I bought my son a toy train set for a christmas present (ie a gift) and it was faulty and the supplier went out of business I would not be covered as it was a present and not for me? I find the whole thing very strange...

eco_warrior

18cc wrote: »

If I bought my son a toy train set for a christmas present (ie a gift) and it was faulty and the supplier went out of business I would not be covered as it was a present and not for me? I find the whole thing very strange...

Yes you would be covered in that situation but it is different.


Car purchase:
Invoice/Contact - daughters name (therefore she is the owner, not the Mother)
Card used - Mother's
Therefore the debtor-creditor-supplier chain is broken (unless there is a joint benefit). Any breach of contract is between the supplier and the daughter, even though the Mother made the payment

Toy purchase:
Invoice/Contract - your name
Card used - your card
DCS chain intact.

The car gift not being covered in the OP's situation is a by-product of the purchase method and paperwork/ownership. Simply saying gifts aren't covered isn't true, but this situation explains how they often aren't.

sheramber

http://uk.creditcards.com/credit-card-news/section-75-third-parties.php

When an item is registered to a name other than that of the cardholder.
Another instance that can catch credit card holders out is when goods are purchased on behalf of another person. For instance, a husband might use his credit card to pay for a new car for his wife, which is then registered in the wife's name. If something goes wrong with the vehicle, credit card companies can wiggle out of a Section 75 claim by accurately arguing that the purchase was made under a name other than that of the car owner.

eco_warrior

sheramber wrote: »

http://uk.creditcards.com/credit-card-news/section-75-third-parties.php

When an item is registered to a name other than that of the cardholder.
Another instance that can catch credit card holders out is when goods are purchased on behalf of another person. For instance, a husband might use his credit card to pay for a new car for his wife, which is then registered in the wife's name. If something goes wrong with the vehicle, credit card companies can wiggle out of a Section 75 claim by accurately arguing that the purchase was made under a name other than that of the car owner.

Its good to let people know the pitfalls. As I've said on here before, S75 isn't the holy grail that some make it out to be. When it works then great, but so many claims get nowhere for reasons like this.

18cc

Ah OK thanks eco I see now - the purchase receipt for the car was not in the mother's name but the daughter's name.

If the purchase receipt was in the mother's name and she paid using her CC they might have had S75 protection.

eco_warrior

18cc wrote: »

Ah OK thanks eco I see now - the purchase receipt for the car was not in the mother's name but the daughter's name.

If the purchase receipt was in the mother's name and she paid using her CC they might have had S75 protection.

In this scenario, yes.

BHan123

Sorry if two posts are confusing, we are panicked and wanted direct advice quickly.
This one relates to whether or not section 75 applies to gifts, to clarify that Sainbury's have a legal right to reject the claim on this basis. The second applies to the situation, and advice on what next steps we can do if Section 75 cannot be applied.
For clarification- the car was purchased on Mum's credit card by Mum for Daughter as a gift- everything else was in daughters name

Terry_Towelling

Look at your other thread for a suggestion. I don't think you have many options left.

18cc

You may have already said or implied it already but could I ask was the purchase receipt for the car in your mum's name or your daughter's name

BHan123

18cc wrote: »

You may have already said or employed it already but could I ask was the purchase receipt for the car in your mum's name or your daughter's name

Daughter's which we now know was a rookie error
It appears we have no choice but to go with whatever decision Sainsbury's come back with