Section 75 protection

Joe_Bastone

Can you please help me with this?

I have ordered a brand new caravan which should hopefully be available to collect in January 2021. It is costing approximately £32,000 and I have paid a £500 deposit on my credit card. 

When it comes to paying the balance the dealership have provided us with their bank details in order that we can arrange a bank transfer. 

My 3 questions are;

1. If I pay the balance due by bank transfer and I subsequently have issues with the caravan, do we have the same protection as if I had purchased these goods using a credit card ie Section 75 Consumer Credit Act?

2. As I have already paid the £500 deposit requested by the dealership is the whole purchase price (although paid partly by credit card and mostly by bank transfer) covered by Section 75 above or not?

3. Is there a limit on the amount of protection offered by using a credit card and if so, what alternatives are available to me to consider?

Thank you

[Deleted User]

Section 75 only covers items up to 30k.

You would need to look at alternative finance secured on the vehicle.

Zellah

1) Yes
2)  S75 covers purchases up to £30000 so you'll probably find you'll have to make up the difference in the worst case scenario, if you paid by credit card and remaining by bank transfer.
3)  Yes, if you paid the full purchase price by debit card then the issuer could do a full chargeback (ie the £32k) if the goods weren't as described. Most major banks/BS have a high limit for a single debit card transaction, eg FirstDirect have a £50k limit.

eskbanker

Zellah said:

2)  S75 covers purchases up to £30000 so you'll probably find you'll have to make up the difference in the worst case scenario, if you paid by credit card and remaining by bank transfer.

An item costing £32K has no S75 protection, not £30K worth....

Zellah

eskbanker said:

Zellah said:

2)  S75 covers purchases up to £30000 so you'll probably find you'll have to make up the difference in the worst case scenario, if you paid by credit card and remaining by bank transfer.

An item costing £32K has no S75 protection, not £30K worth....

Thanks, I stand corrected.

NottinghamKnight

OP you are not covered by section 75 but would be by section 75a for which you would need to enter into a credit agreement, such as hire purchase arranged through the vendor, have you checked to see if this is available. This would come with a cost in some interest but you should be able to settle the finance in a short period at minimal cost and still be covered under section 75a. This obviously only makes the finance company jointly liable, it's not a panacea, guarantee or a magic method to solve all issues.

Joe_Bastone

Thank you very much for this.