Section 75/75a for purchases over £30k

Davidcox00

Hoping for some advice and clarity around the above. 

We've purchased a garden room, halfway through the build the firm has gone into administration leaving us with a half finished build and a builders yard for a garden

Cost was £30,800. £14k was paid directly with a credit card, the rest through three debit card payments.

My questions:

As the total purchase value is over £30k - would section 75 be rejected immediately? Although only £14k was paid via CC.

Does section 75a then apply in this case? I must admit I find the wording around this rather confusing regarding a linked credit agreement - I'm not sure a credit card payment direct to the supplier is covered. Would anyone know if that is the case? 

Is the chargeback option our best hope in this situation? I'm assuming as the company is in administration this would be a challenge and we could end up with pence in the pound after all creditors are paid.

 Any advice here would be greatly appreciated. Many thanks

David

ItsComingRome

Davidcox00 said:

Hoping for some advice and clarity around the above. 

We've purchased a garden room, halfway through the build the firm has gone into administration leaving us with a half finished build and a builders yard for a garden

Cost was £30,800. £14k was paid directly with a credit card, the rest through three debit card payments.

My questions:

As the total purchase value is over £30k - would section 75 be rejected immediately? Although only £14k was paid via CC.

Does section 75a then apply in this case? I must admit I find the wording around this rather confusing regarding a linked credit agreement - I'm not sure a credit card payment direct to the supplier is covered. Would anyone know if that is the case? 

Is the chargeback option our best hope in this situation? I'm assuming as the company is in administration this would be a challenge and we could end up with pence in the pound after all creditors are paid.

 Any advice here would be greatly appreciated. Many thanks

David

If the total value of the goods is above £30,000 then S75 does not apply.

75A also does not apply.  This is not a "linked credit agreement" which is defined as

In this section “linked credit agreement” means a regulated consumer credit agreement which serves exclusively to finance an agreement for the supply of specific goods or the provision of a specific service and where—

Your credit card clearly does not exist exclusively to finance the goods you purchased as you use it to buy anything you want.

A chargeback is realistically your only option. although you wouldn't be out of pocket because they're in administration. Most likely their merchant provider would be.

[Deleted User]

Section 75 will be rejected by the card issuer yes as it's over the limit they are required to look at

Davidcox00

Thanks both. Appreciate your response, makes sense.

Re chargeback - so the bank/credit card would essentially give you a provisional credit as they dispute the payments with the merchant. But if the merchant is in administration and the bank cannot then get the money back is that provisional credit then reversed - or at least some of it? Who would be out of pocket here, us or the bank?

[Deleted User]

Neither.  The merchant's bank.

Malkytheheed

Is there anyway the cost was perhaps wrongly written or something...? And the real cost was £29k....? If you get me,. 

born_again

Davidcox00 said:

Thanks both. Appreciate your response, makes sense.

Re chargeback - so the bank/credit card would essentially give you a provisional credit as they dispute the payments with the merchant. But if the merchant is in administration and the bank cannot then get the money back is that provisional credit then reversed - or at least some of it? Who would be out of pocket here, us or the bank?

Makes no difference.
Money comes from retailers merchant bank. How they get it back is up to them. Customer gets full refund. 

Chargeback would have to be done on each payment separately. So you need to speak to both Credit & Debit card providers.
So dig any invoices out and contact them. As you will need to be sending paperwork in. As you will need to prove administration and exactly what you paid for.
Also as in administration, far less chance of being contested.

Davidcox00

Great thanks all. Appreciate the responses. Clearly I didn't fully understand the process re chargeback. We've contacted both providers to instigate the chargeback. FirstDirect (debit card)  told us to wait 10 days - I'm assuming to allow for developments with the administrators but I think we'll get in touch with them later today to tell them to crack on.

Thanks again.

eskbanker

Perhaps splitting hairs but businesses can continue trading when in administration so in itself that doesn't necessarily signify that the job won't be completed, but if you've actually been advised that the work won't be done then that's what you need to rely on....

ItsComingRome

Malkytheheed said:

Is there anyway the cost was perhaps wrongly written or something...? And the real cost was £29k....? If you get me,. 

Encouraging someone to submit a fraudulent S75 claim is hardly a good idea.

born_again

Malkytheheed said:

Is there anyway the cost was perhaps wrongly written or something...? And the real cost was £29k....? If you get me,. 

So how is OP going to prove that?

Advising people to commit fraud is against forum rules...