Response to a section 75 claim

Terry_Towelling

born_again wrote: »

It should be down to the card issuer to decide the best way to take any dispute forward. As they are the experts.
The number of time people argue "I want a S 75 claim NOW" is amazing. Most are not happy when they are told how long it may take compared to a chargeback. Also no money back till resolved, unlike a c/b which is usually refunded in a matter of days (subject to being redebited if fails)
Our's are handled by different teams due to the experience involved in the different reasoning required.
A failed chargeback will then move onto the S75 team, without any customer action.

As you say. Different card providers will have different views on how long and how they deal with disputes.

I hear what you say, but if a cardholder wants to lodge a claim according to rights conferred on them through S75 CCA, and you steer them away from that option inappropriately, you may end up in hot water. You have, after all, said that the two types of dispute have different requirements of the staff, so who makes the decision to direct a case one way or the other at the outset?

As an issuer, you should surely just take on the dispute (or not, as the case may be) in the way it is presented and deal with it. You may indeed be able to use the Chargeback process to recover part (or all) of the disputed amount but the Cardholder doesn't really need to know that.

If a Chargeback fails, what is it that triggers the case to move to the S75 team? Do failed Chargebacks (for consumer protection issues) all get reviewed by the S75 team, or only those ones where the customer was talked out of S75 at the outset?

I'm wondering how your back-office process would work where only a part payment was made by credit card - how do you handle the separation in the work? What about consequential losses over and above the value of the purchase - would the Chargeback team know when to refer on a case after performing a Chargeback? Also, would the S75 team know when to refer back to the Chargeback department if a S75 claim could be recovered through Chargeback? One final question, if the purchase had been made on multiple credit cards with one issued by your company, and the cardholder came to you for payment of the total cost under S75, how would it be handled?

I'm not trying to trip you up, I'm just curious to know how you manage the separation of work.

born_again

We deal with the original customer call. We know the dispute rights & S75 criteria. If we feel that C/B is the way forward it is taken that way. If we are unsure it is referred to a tech team before a decision is made.
If it is a clear S75 (out of c/b time etc) then the details are sent to the S75 team who will pick it up and deal. If they them feel a c/b is still available they will pass it back to the tech team.
If a c/b fails. The team that deal with re presentments , pass all of them straight to the S75 team to review, even if clear there is not S75 (value etc)

Part payment, will depend on where the other part came from (internal or external payments) If its internal that that either fall to us (card payment) or S75 (non card payment) External then S75 deal.
Any possible Consequential losses are reviewed by S75 team as part of their process.
If it is over multiple credit cards, then we would deal with our part as required and S75 team would be copied in just in case they have to take any action.

Seems quite complicated, but we do work closely with the S75 team and most of them have progressed from our Tech team, so fully understand the whole dispute process. Just they have access to the legal team for the complicated ones where a president needs to be set (such as breast implants issue a few years ago)

Works very well, as means no work is duplicated. As well as there are full notes on customer account, so everything spoken about and actioned is noted.

lr1277

Thanks to all the people who added comments to this thread.

Just to let you know, my card issuer refunded my hotel cost. Took about 5-6 weeks, but I have my money back.


I did call them 3 days ago and they said the issue had taken a long time to investigate due to when I made the booking but the money would be in my account by the end of the week, and it is.

eco_warrior

born_again wrote: »

It should be down to the card issuer to decide the best way to take any dispute forward. As they are the experts.
The number of time people argue "I want a S 75 claim NOW" is amazing. Most are not happy when they are told how long it may take compared to a chargeback. Also no money back till resolved, unlike a c/b which is usually refunded in a matter of days (subject to being redebited if fails)
Our's are handled by different teams due to the experience involved in the different reasoning required.
A failed chargeback will then move onto the S75 team, without any customer action.

As you say. Different card providers will have different views on how long and how they deal with disputes.

This is similar to our way of working with a few exceptions.

RE Terry’s point about a customer “choosing” S75 over a chargeback. We’ve dealt with 1 or 2 cases where customers point blank refused to have a chargeback, one had some justification and some were just going on what they had read etc. This involved our lawyers agreeing customers couldn’t be forced down one avenue over another.

They all got chargebacks in the end as their s75 claims were rejected, for one reason or the other. So I completely agree with your point about the issuer being able to determine the correct options from the beginning. We are there to help after all. However there is a level of mistrust between customers and banks, it’s perpetuated by incorrect information found online. Even now with the Thomas Cook situation there is barely a thing mentioned about chargebacks when this will be the process used to help the majority.

All in my opinion of course