Paypal Credit - section 75 rights

TomTomTomTom

I recently had an experience of buying stolen goods from ebay. I think all is getting sorted, and seller is refunding my, but it made me think about how to avoid this being a problem.

The solution i think i have come up with is to use paypal credit. My thinking is that paypal would then have section 75 obligations in case anything goes wrong with the purchase.


There is a lot of discussion around credit card's section 75 obligations not applying for purchases through Paypal. So i wanted to find a way around that.


Does anyone have any information on how this would work.

A particular question i had is whether it would also apply in the case of private seller who is not acting as a business?

PRAISETHESUN

Section 75 requires a clear "creditor-debtor-supplier" link, which is usually broken by using 3rd party payment processors such as PayPal. If your credit provider is PayPal however, then I would suspect that would be okay. Not quite sure how it works with private sellers, but I would assume you'd have to dispute with eBay prior to escalating it to a section 75 claim with PayPal.

born_again

TBH. Section 75 would be your last post of call. As Ebay or Paypal should deal with it via their own protection schemes.

You would need to check with PayPal is their PayPal credit offers S75 cover.

IvanDP

2 years old, but maybe of some use:

https://www.moneysavingexpert.com/news/2017/04/revealed-section-75-credit-card-protection-may-fail-due-to-payment-processing-loophole---shoppers-beware/

born_again

The problem with S75 is it is years out of date. It was set up when credit was direct to the company providing the goods/funds.
ie. A car loan/furniture etc.

With the massive rise in the use of credit cards. The whole S75 needs to be reviewed, as it is not fit for purpose now. as well as not really what S75 was intended to cover.

S75 covers breach of contract &/or misrepresentation.
So if you make a payment via a 3rd party (paypal) you are contracting them to move your (card providers) money to the seller.
So long as they do that they (3rd party) have completed the contract.

It is amazing the number of people who try to claim S75 when it is them that have broken the contract by cancelling a order.