Section 75, Interest Payments and Minimum Payments

groovegenerator

Hi Folks,
I've finally been able to speak to someone within a credit card company about making a claim under Section 75 of the Consumer Credit Act. The card is owned by NewDay and is a Mastercard supplied through Laura Ashley - the story around their administration is pretty well known and I made a single large purchase for goods which have been effectively undelivered. I took the card because it offered 3 months interest-free - and interest starts being charge on the balance from next month. I've spoken to the card's disputes department and they are putting me through the process.

I am asking - because the staff member on the phone said this - is there a way to stop interest payments on the balance? Do I need to continue to pay the minimum amount when the whole balance for a single purchase is what is disputed. The staffer says that I will be unable to claim back any interest on the balance as part of this claim.

Whilst it seems to be taking this particular credit card company quite a long time to move through the processes during these times, is the staffer right? Am I unable to claim the interest payments? I am worried that it will take a long time to solve under Section 75 due to the difficulties of these times. At the same time I am not keen to pay any larger sum of money into the balance. Is there a legal view about the interest payments connected with Section 75?

eskbanker

As I understand it, chargeback would typically be a much quicker process in such situations, rather than s75, is that an option worth exploring?

born_again

As above. 
If they are doing S75, then you will need to still make payments, but any interest should be adjusted. In fact given the situation the amount owed should have been put in dispute (basically that means it's not there) but can be reinstated at a later date with or without interest.
If you end up in credit, then it will be refunded back to your account that has been paying the card.