Overseas supplier. Part paid on CC, would S75 provide cover?

jase_31

Can anyone check my understanding, and if S75 cover would be applicable.

I am about to pay a deposit to an overseas supplier (non EU) for trip of around £1000. The total cost is quite high (for a group) around £5k

As long make the an small payment by credit card (even if it is not for the full deposit), and other payments by bank transfer, am I right in thinking that this would provide S75 cover for the whole trip (i.e if operator ceases trading etc).

Does the first payment need to be on card, or ANY part of the payment?

Can anyone confirm.

eskbanker

There's no stipulation that it needs to be the first payment to qualify, but your reference to a 'group' may be problematic - if it's a family holiday then it might be OK, but is that what you had in mind?

https://www.moneysavingexpert.com/shopping/section75-protect-your-purchases/#accordion-content-942458786-1 is equivocal about such group booking situations....

jase_31

eskbanker wrote: »

There's no stipulation that it needs to be the first payment to qualify, but your reference to a 'group' may be problematic - if it's a family holiday then it might be OK, but is that what you had in mind?

https://www.moneysavingexpert.com/shopping/section75-protect-your-purchases/#accordion-content-942458786-1 is equivocal about such group booking situations....

Thanks this should be fine, as I am renting a villa which is the same cost be it 1 or 20 people go, If I travel by myself, then I would be liable for the whole cost! It is my name as the booking -

Terry_Towelling

It does sound (on the surface) like you'd get S75 protection but there are some pitfalls, such as where you book via a travel agent, when you might not be covered by S75. If S75 coverage were deemed not to apply (if it ever came to making a claim) there is the prospect that you may be eligible for Chargeback coverage. The difference there would be that any Chargeback could not be for more than the transaction amounts placed on the card - so that is something that needs to be considered.

S75 says that if you have a claim against a supplier for breach of contract or misrepresentation, you will have a like claim against the credit card company as long as there are clear, unbroken contractual arrangements between you, your card company and the end supplier. So, ideally you would need to contract with, and pay, the supplier directly and be able to demonstrate breach of contract/misrep. To do this you may want to make sure you retain any and all paperwork, brochures etc clearly showing what is being represented to you and be careful to collect as much evidence as possible of the ways in which the reality differs from the description.

jase_31

This risk to cover is supplier failure - which should be a clear event to evidence. Just trying to add a bit of protection in. Anything else is a bonus.

eco_warrior

Pay it all on by credit card and it’s all covered on chargeback (for supplier failure) without the worry of 1) 3rd party agents 2) only the cardholder being covered by s75.

eco_warrior

I should have added that paying via bank transfer is opening you up to much more risk. I wouldn’t use bank transfer to pay for anything, ever.

MEM62

Whilst I understand the desire for some assurance, I don't get why you making this so complicated? Travel insurance is the correct vehicle to cover this type of risk.

Terry_Towelling

MEM62 wrote: »

Whilst I understand the desire for some assurance, I don't get why you making this so complicated? Travel insurance is the correct vehicle to cover this type of risk.

Maybe so but supplier failure will usually be covered by the credit/debit card chargeback rules at no cost whatsoever and with no excess payable.

Obviously travel insurance will cover other things and is an essential anyway.