Section 75 Help with MBNA and Barclaycard

himatvarsani

The Section 75 of the Consumer Credit Act 1974 would cover me against the breach of agreement, lack of services, and misrepresentation/mis-selling of services delivered by merchant 7 Figures Skills. This protection with the credit card provider would ensure recovery of money paid plus interest and further monies paid relating to the agreement.

I had submitted to both of the credit card provider (MBNA and Barclaycard) all my documents and providing explanation that the deliverables within the agreement was not delivered hence breach of agreement of services. I had signed up a 12 months agreement with 7 Figure Skills for them to build two Dropshipping businesses. Bear in mind with no experience, knowledge or time, I felt this company was creditable to help me with services as Mr AJ Jomah the director of 7 Figures Skills portrayed himself as a successful individual setting up many successful online ecommerce stores. So, I had no reason to doubt his abilities.

I had paid a total of $20,000 for this service furthermore paying for cost of flight and hotel booking visiting Austin, Texas, USA as I was serious setting up this business. I had to do all the work as nothing was done by them whilst holding down a fulltime job.

Both credit card providers (MBNA and Barclaycard) have rejected the claim despite giving them numerous of explanation and providing supporting evidence. They have provided me with ridiculous excuses to reject my claim.

MBNA: They are rejecting the claim because they are stating it’s a business transaction. How can this be a business transaction if there’s no business.

Barclaycard: They wanted a timeline of event, how can this be measured using a timeline as the agreement was for 12 months. Other excuses not to pay out.

I have been going back and forth with both providers and now I have taken this further by launching a complaint. I have a feeling that they will also reject this claim and it takes them weeks to respond. I have continued paying the minimum payment of around £700 per month on a low income so I have been struggling to maintain the payment.

I had sent email to the merchant but had no response.

I am looking to seek advice on what I should do to recover the total amount paid plus other costs with interest paid with both credit card providers. I am a victim of this whole situation and it is a very frustrating experience. Please help…

I am also thinking to take out a personal loan of £23,000 just to pay off the credit card due to the high interest rate of 19%. Please let me know your thoughts.

Thank you

Himat Varsani

eskbanker

himatvarsani said:

MBNA: They are rejecting the claim because they are stating it’s a business transaction. How can this be a business transaction if there’s no business.

By your own admission, you were signing up to an "agreement with 7 Figure Skills for them to build two Dropshipping businesses" and that "I was serious setting up this business"!

himatvarsani said:

Barclaycard: They wanted a timeline of event, how can this be measured using a timeline as the agreement was for 12 months. Other excuses not to pay out.

You obviously have sight of exactly what wording was used in their request, so provide them with what they're asking for - bear in mind that by initiating a s75 claim, you're holding the card company legally liable for a failed transaction, so you need to comply with any reasonable request they make, when they are trying to get up to speed with what has or hasn't happened.

himatvarsani said:

I am looking to seek advice on what I should do to recover the total amount paid plus other costs with interest paid with both credit card providers.

It would be an excellent result to recover the costs spelt out in the agreement, i.e. the $20K, but based on what you've posted there is no chance of the card companies accepting liability for travel costs or interest.  You suggest that your attempts to contact the merchant have been unsuccessful thus far but I suspect that continuing to push them will be more productive than your attempts to get the creditors to pick up the tab, given the obvious reluctance there....

epm-84

I'm afraid drop shipping is not what's it made out to be.  BBC Click did a program on this recently as many drop shipping companies have tried to use social media influencers to sell fake products.  If you did your own research you'll realise as a drop shipper you'd take the financial hit for companies in China disappearing, products get lost or products not being as described, even if you stand to make huge sums on successful transactions.

Did you try doing chargebacks before S75?  A chargeback is asking the card provider to reverse a transaction where you didn't get the goods or services promised, S75 is where you are asking for compensation from the card provider.  Consequently, it may be easier to get a chargeback.

If you paid an airline for a flight and they operated the flight then you won't be able to get the air fare back as it was your choice not to use the service you paid for, the same with a hotel booking if the hotel was open and you didn't turn up then you won't get a refund.

If you're unable to get money back you might want to look at doing a balance transfer to a 0% card: https://www.moneysavingexpert.com/credit-cards/balance-transfer-credit-cards/

born_again

epm-84 said:

Did you try doing chargebacks before S75?  A chargeback is asking the card provider to reverse a transaction where you didn't get the goods or services promised, S75 is where you are asking for compensation from the card provider.  Consequently, it may be easier to get a chargeback.

OP will have had to supply the T/C that he signed up to for them to even look at any claim.
I think that maybe the OP has misunderstood what they were signing up to.
>> I had signed up a 12 months agreement with 7 Figure Skills for them to build two Dropshipping businesses.<<

All that could mean is they set up a website with a e-store & a list of trader to use. Or show you how to do it.
>>I had to do all the work as nothing was done by them whilst holding down a fulltime job.<<
So in reality it sounds like OP was wanting someone to run the business while they sat back and made the money.

You do not need to pay anyone to set up drop shipping.
Get a domain name, some hosting with a ecommerce store front. Source the goods from other co's and that is about it apart from the time required to run it.
Many people do it after work as a side line.

As to chargebacks it going to be very hard to prove they did not get the service. As part of the S75 will have been to look if they can off load some of the loss on chargebacks.

A quick google brings up plenty of links.
https://ecombusinesshub.com/7-figure-skills-review
>>In a nutshell, 7 Figure Skills is an eCommerce training and coaching program that teaches you how to sell high-ticket (expensive) items on Shopify using Google Shopping Ads. On its website, 7 Figure Skills was said to be created by AJ Jomah and his co-founder named J Keitsu. Jomah is a veteran and accomplished Internet Marketer.<<

• Standard Package $1,297.00
• Premium Academy $2,497.00
• Done-For-You $5,997

himatvarsani

eskbanker said:

himatvarsani said:

MBNA: They are rejecting the claim because they are stating it’s a business transaction. How can this be a business transaction if there’s no business.

By your own admission, you were signing up to an "agreement with 7 Figure Skills for them to build two Dropshipping businesses" and that "I was serious setting up this business"!

himatvarsani said:

Barclaycard: They wanted a timeline of event, how can this be measured using a timeline as the agreement was for 12 months. Other excuses not to pay out.

You obviously have sight of exactly what wording was used in their request, so provide them with what they're asking for - bear in mind that by initiating a s75 claim, you're holding the card company legally liable for a failed transaction, so you need to comply with any reasonable request they make, when they are trying to get up to speed with what has or hasn't happened.

himatvarsani said:

I am looking to seek advice on what I should do to recover the total amount paid plus other costs with interest paid with both credit card providers.

It would be an excellent result to recover the costs spelt out in the agreement, i.e. the $20K, but based on what you've posted there is no chance of the card companies accepting liability for travel costs or interest.  You suggest that your attempts to contact the merchant have been unsuccessful thus far but I suspect that continuing to push them will be more productive than your attempts to get the creditors to pick up the tab, given the obvious reluctance there....

Thank you for your response. My understanding was that the s75 for failed services so training and education was a service. MBNA is stating it's a business transaction, Am I misunderstanding this concept.
I don't know what they mean by exact timeline of event as it was a 12 months agreement. I did complete a goal setting form, would that be suitable as a timeline. I have tried and send numerous of message to the merchant to get a refund but no joy, hence why I have no choice but to go through the s75. It would be wonderful for the CC to pay for it all, mind you the trip the Texas was part of the agreement.

I hope this made sense.
Thank you  

himatvarsani

epm-84 said:

I'm afraid drop shipping is not what's it made out to be.  BBC Click did a program on this recently as many drop shipping companies have tried to use social media influencers to sell fake products.  If you did your own research you'll realise as a drop shipper you'd take the financial hit for companies in China disappearing, products get lost or products not being as described, even if you stand to make huge sums on successful transactions.

Did you try doing chargebacks before S75?  A chargeback is asking the card provider to reverse a transaction where you didn't get the goods or services promised, S75 is where you are asking for compensation from the card provider.  Consequently, it may be easier to get a chargeback.

If you paid an airline for a flight and they operated the flight then you won't be able to get the air fare back as it was your choice not to use the service you paid for, the same with a hotel booking if the hotel was open and you didn't turn up then you won't get a refund.

If you're unable to get money back you might want to look at doing a balance transfer to a 0% card: https://www.moneysavingexpert.com/credit-cards/balance-transfer-credit-cards/

Thank you for you response.
The dropshipping business wasn't through china product such as Ali express etc. The process was to sign up agreement directly with suppliers in the US selling safes and gun safes, being high ticket items - reputable companies, but thank you for your information of the implication of failed or undelivered products. 

With regards to chargeback, would this apply to me the agreement has been over 12 months, how would this work or how can I process this?

I tried applying for a 0% but the maximum I can apply for is £10,000 and the monthly payment is the same payment I am paying at the moment, but I see that the capital is being paid off. I have never got into this type of situation before and appreciate the guidance.

Thank you 

himatvarsani

born_again said:

epm-84 said:

Did you try doing chargebacks before S75?  A chargeback is asking the card provider to reverse a transaction where you didn't get the goods or services promised, S75 is where you are asking for compensation from the card provider.  Consequently, it may be easier to get a chargeback.

OP will have had to supply the T/C that he signed up to for them to even look at any claim.
I think that maybe the OP has misunderstood what they were signing up to.
>> I had signed up a 12 months agreement with 7 Figure Skills for them to build two Dropshipping businesses.<<

All that could mean is they set up a website with a e-store & a list of trader to use. Or show you how to do it.
>>I had to do all the work as nothing was done by them whilst holding down a fulltime job.<<
So in reality it sounds like OP was wanting someone to run the business while they sat back and made the money.

You do not need to pay anyone to set up drop shipping.
Get a domain name, some hosting with a ecommerce store front. Source the goods from other co's and that is about it apart from the time required to run it.
Many people do it after work as a side line.

As to chargebacks it going to be very hard to prove they did not get the service. As part of the S75 will have been to look if they can off load some of the loss on chargebacks.

A quick google brings up plenty of links.
https://ecombusinesshub.com/7-figure-skills-review
>>In a nutshell, 7 Figure Skills is an eCommerce training and coaching program that teaches you how to sell high-ticket (expensive) items on Shopify using Google Shopping Ads. On its website, 7 Figure Skills was said to be created by AJ Jomah and his co-founder named J Keitsu. Jomah is a veteran and accomplished Internet Marketer.<<

• Standard Package $1,297.00
• Premium Academy $2,497.00
• Done-For-You $5,997

Thank you for your response.
Sorry what is OP?
In reality I could set up the full business by myself but I was naive that I could use the help of someone I felt was the professional. The package has changed since I had signed up. I also read reviews online before signing up, I also had a four hours conversation with them and felt at the time they could help me.

I don't know if chargeback will work as its been over a year.

[Deleted User]

himatvarsani said:

My understanding was that the s75 for failed services so training and education was a service. MBNA is stating it's a business transaction, Am I misunderstanding this concept.

Yes.  S75 is consumer protection, not B2B.

Sandtree

himatvarsani said:
My understanding was that the s75 for failed services so training and education was a service. MBNA is stating it's a business transaction, Am I misunderstanding this concept.

Yes, it doesnt matter what you are buying it matters what capacity you are buying it for... buy a printer for your home to print off vouchers or family photos and that is a consumer transaction and covered (assuming other criteria met)... but that identical printer for your office to print off invoices to send to clients and that is a business transaction and not covered.

You have explicitly stated that the transactions were

himatvarsani said:
I had signed up a 12 months agreement with 7 Figure Skills for them to build two Dropshipping businesses. 

It is therefore a business transaction and not covered by consumer law.

As a business person, or one in the making, you are not considered to need the same level of nanny state protection.

eskbanker

himatvarsani said:
Thank you for your response. My understanding was that the s75 for failed services so training and education was a service. MBNA is stating it's a business transaction, Am I misunderstanding this concept.

I don't know what they mean by exact timeline of event as it was a 12 months agreement. I did complete a goal setting form, would that be suitable as a timeline. I have tried and send numerous of message to the merchant to get a refund but no joy, hence why I have no choice but to go through the s75. It would be wonderful for the CC to pay for it all, mind you the trip the Texas was part of the agreement.

It's not clear exactly what you signed up to - did you engage them to provide training and education services or "for them to build two Dropshipping businesses"?  Whatever agreement you signed should make it clear exactly what the supplier was required to deliver - it may well be that they agreed to host you at their premises but that doesn't make them responsible for flight costs unless they specify liability for these within the agreement?

My interpretation of what they mean by timeline of events is the chronology of what has happened so far and when, such as:

1. Signed agreement on [date]
2. Some services received on [date(s)]
3. Raised concerns by letter/email on [date(s)]
4. Supplier responded on [date(s)]
5. Unanswered communications sent on [date]

born_again

himatvarsani said:

Sorry what is OP?
In reality I could set up the full business by myself but I was naive that I could use the help of someone I felt was the professional. The package has changed since I had signed up. I also read reviews online before signing up, I also had a four hours conversation with them and felt at the time they could help me.

I don't know if chargeback will work as its been over a year.

Original Post or Poster.

A chargeback has a 120 day limit, but can run to 540 days for ongoing/future dated services/purchases.
But you would have to prove a date the service was to be provided by.
But like others as this was for setting up a business. It will be classed as B2B.