Updated - please see latest post // Section 75 - no correspondence and amount more than requested

Lurkingtoposting17

Hi - please see my latest post at the bottom for latest development - 50 days after Mastercard chargeback, the gym has directly contacted me saying I am in arrears - not sure how to proceed!

TLDR; I submitted a section 75 for a portion of pre paid gym membership to cover lockdown period but got refunded the full cost. What happens now? Can the Section 75 be reversed in full or in part?

I paid up front for a gym membership (annual) August last year. When lockdown and gyms shut down, my company decided we would work from home for rest of the year. I asked when lockdown ended for gyms for a refund covering the time they were closed, which was rejected as they planned to extend the contract which is not suitable for me now. I pointed out CMA guidance means they can offer to extend but cannot force me to and their own T&C do not cover these, so CMA guidance would prevail. At this point they stopped correspondence.
I pursued via my credit card section 75 process sending all relevant evidence with a cover letter stating I was only pursuing a refund for the breached element of the contract and listed out the breakdown of how I got to that figure, as well as putting it in big bold letters. However I have checked my credit card today and I have received no correspondence from my card company but they have issued a refund for the full amount.
I am trying to understand what happens now. Can this be contested and if it is would they just give the gym back the full amount or allow me to keep the amount which I requested? Quite honestly, if it cannot I would send the gym a cheque for the amount that represents the serviced part of the contract - as whilst they really have not been at all helpful in this situation - they have provided a service for part of the contract and I am not trying to dispute that or cause them unnecessary hardship.

Any insight into how the process works after refund issued would be greatly appreciated so I can work out how to respond from my side.

eskbanker

I suspect that your card company may have processed it as a chargeback rather than a section 75 claim, as this means that they don't take the financial hit and it's therefore in their interests to do so, at least initially (a s75 claim can still follow if necessary).  However, this does mean that refunding of monies into your account is indeed provisional and reversible in the event that the merchant disputes it within the next 45 days, so bear that in mind and wait to hear from your card company, or chase them to find out what's happened if you don't want to wait....

Lurkingtoposting17

Thanks that’s helpful. Happy to wait and see what happens. I assume if it is contested in next 45 days I can contact them and ask if it was a chargeback or s75 and ask them to process the partial refund as s75 if it is contested in full? Thanks so much. 

born_again

Before any S75 refund you should get a letter asking you to agree to the payout. As it will state "This is a full and final settlement"
So as per eskbanker this sounds like a chargeback.

Novice_investor101

I claimed, what i thought was a S75, with Natwest for a cancelled event. The amount was added back to my credit card & then an email came about 4 days later stating that it could be reversed if the vendor contested it. 

Then gave me a date by which if it was still in my account it was mine to keep. Which does match up to about 45 days. 

I’m guessing, then, they also did a charge back. 

born_again

Novice_investor101 said:

I claimed, what i thought was a S75, with Natwest for a cancelled event. The amount was added back to my credit card & then an email came about 4 days later stating that it could be reversed if the vendor contested it. 

Then gave me a date by which if it was still in my account it was mine to keep. Which does match up to about 45 days. 

I’m guessing, then, they also did a charge back. 

This is where it all goes wrong when people mention a S75 claim. They should be asking the card provider the best way forward. Not saying I want a S75 claim.

Lurkingtoposting17

Hi - I am over 45 days since the refund was given to me, the amount has not been contested by the company.
The company have just texted me to say I am in arrears and need to contact them to rectify. I consider my membership closed with them (has not been used since March, they have ignored correspondence, hence chargeback route). However, I am worried that they could chase this debt. There was no credit agreement and the membership was paid in full, then charged back and I have not used the service since. 
Does anyone know what happens at this point? Am I best to ask credit card company to send me correspondence saying it was charged back and keep printed copies of evidence here incase they were to try and chase the debt? I don't want to bury my head in the sand about it and end up in trouble! 
Thanks in advance to anyone with any ideas!

eddddy

The credit card company isn't a court of law - the bank agreed to do a chargeback, but that isn't the same as a court ruling that you don't owe the money.

The gym still believes that you owe them money.

So perhaps the best plan is to explain to the gym why you believe you don't owe them money - which is presumably because you believe they breached their contract with you. (It might be best to refer to the specific t&cs that they breached.)

If you can't come to any kind of agreement with the gym, depending on the amount of money involved, they might decide to make a court claim against you.

jonesMUFCforever

What MAY happen is that they will start legal proceedings against you for breach of contract.
I can't read anywhere about the amount in question so difficult to quantify.