Unauthorised Payment - Section 75?

bombblast1968

I wonder if anyone knows and understands Section 75 and Chargebacks and if they can enlighten me.

I signed up to a course on the premises of a trainer, paid a deposit and agreed to instalment plan of 3 other payments. Subsequently, I liaised with the company to postpone the course and payments to 2020 and this was agreed by email. They took the first instalment in October, have denied knowledge of the agreed postponement, even though I have provided evidence, and now won't refund the payment taken.

I have spoken to my credit card provider, and they are going to look at the case to see if they can claim the payment back.

Is this covered under Section 75?
or is it a Chargeback?
or not covered at all?

I have lost faith in the company, if as a result of this I wish to cancel the course I haven't started yet, is there any way I can claim a full refund?

Thanks for reading.

jonesMUFCforever

What does the contract you agreed to say about postponements and cancellations?

bombblast1968

As far as I can see it's a standard contract, 14 day cooling off period for distance purchase but not if purchased on site. Only cancel if faulty, or the company defaults on it's obligations.

eco_warrior

Not sure I’d fancy your chances to be honest.

As JonesMUFC has said its really down to what your contract states. If you have already passed your cancellation period your cc provider will probably use that as a reason to reject your claim.

A chargeback for not as described on the basis that the merchant agreed to change its payment terms then reneged on it is possible. I’ve never been a fan of basing a chargeback on emails making changes or promises. If your emails are very clear on this then you may as well put it to your card provider. They might be happy to give it a shot.

born_again

Can you clear up if it was online or in person? Gven your use of "premises "
You could try a cancelled CPA chargeback. As you say you got them to approve a delay in payments. But I would have to say that while it may win by default if the company do not contest. They could still chase you via the courts for the course cost.
If they do contest it will swing on the email you received agreeing to the change.

bombblast1968

The sign up to the course was in person, that negates any cooling off period.

It's not that I am against doing the course, my circumstances just meant I needed to postpone it and they said that was ok. After taking the payment the account manager said "oops I never got the email" which is unlikely, but when they realised a mistake if they just refunded it things would be fine and I would be happy to continue on the course next year as agreed. Their actions since then have made me feel uncomfortable.

What is a cancelled CPA chargeback?

My card provider have agreed to consider it and I have sent them the details but they said the fact it was signed up to in person makes a dispute difficult.

jonesMUFCforever

I would say you have little chance of succeeding with your claim - you paid an extra instalment now which you won't have to pay in the future.
If the course is there for you to take, then IMO change of mind is not a chargeback or S75 claim - unless it is stated in the contract you agreed to.

chattychappy

My view is that if you authorised the payment and before they processed it both parties agreed that it would not be taken, then the payment they took was unauthorised.

I digress, but had you told the CC in advance* that the merchant is no longer authorised to take the payment, then the Payment Services Regulations would have required them not to process it or refund if they subsequently process it, even in the absence of an agreement with the merchant. This law was initially ignored by CCs, who would tell customers that a CPA couldn't be stopped via the CC because payments were authorised. Only a merchant could stop a CPA. The law doesn't single out CPAs - it allows any payment to be stopped unilaterally by the payer prior to processing but it was CPAs that caused the most difficulty for consumers.

(* you had no reason to think this was necessary).

born_again

bombblast1968 wrote: »

What is a cancelled CPA chargeback?

My card provider have agreed to consider it and I have sent them the details but they said the fact it was signed up to in person makes a dispute difficult.

CPA = Continuous Payment Authority

How it was made should make no difference, as you have proof that they should not have taken it.

TBH. Not often you get these via a in person payment. Unless it is a gym.

What you have to remember is with a CPA, while you can cancel direct with the bank/card provider. The retailer does not get notified of this. So when they take the payment and it than gets taken back. They do have a right to chase you via legal means as you have not told them.