S.75 Consumer Credit Act protection for the disabled

Bleiddyn

I manage Power of Attorney for my adult disabled son.  At times I need or may need to make larger purchases for him online.  Is there any way that I can get the security of Section 75 of the Consumer Credit Act 1974 for this?
Personally I use my credit card for most things and clear the full balance every month by Direct Debit.   If he could get a credit card that is what I would do for him. 
I guess there is no way he will be eligible for a credit card as his only income is Disability Living Allowance and Employment Support Allowance.
Are there any other ways in which we can make protected payments for large sums?
Any suggestions would be appreciated.  I thought of signing him up for PayPal with his debit card, but I do not think that would give any more protection.

eskbanker

Although you'll find plenty of references to purchases having to be 'for the benefit of' the primary cardholder, the legislation actually makes no such specification, so you should have s75 coverage for purchases if they're made in your name (i.e. you're named on the order/invoice) and you take responsibility for any follow-up with the merchant and/or card company.

Worth recognising that chargeback offers significant protection too, against supplier failures and contractual breaches, but without the s75 requirement for the unbroken debtor-creditor-supplier chain.

born_again

As @eskbanker

S75 is not that often required due to Chargebacks being a option. Which are exactly the same on Debit & Credit cards.

dr_adidas01

Bleiddyn said:

I manage Power of Attorney for my adult disabled son.  At times I need or may need to make larger purchases for him online.  Is there any way that I can get the security of Section 75 of the Consumer Credit Act 1974 for this?
Personally I use my credit card for most things and clear the full balance every month by Direct Debit.   If he could get a credit card that is what I would do for him. 
I guess there is no way he will be eligible for a credit card as his only income is Disability Living Allowance and Employment Support Allowance.
Are there any other ways in which we can make protected payments for large sums?
Any suggestions would be appreciated.  I thought of signing him up for PayPal with his debit card, but I do not think that would give any more protection.

Why wouldn't he be eligible for a credit card?  Just because he's on DLA and ESA doesn't exclude him or anyone on these benefits from getting a credit card. When applying you would state they were on benefits and how much a year it is or how much a month depending on what the credit card company asks.

The only thing is I don't think Attorney's are allowed to open credit products on behalf of the person they are caring for, in the case of your son as you are managing his finances I'm assuming he wouldn't be able to fully understand a credit cards T&C's or understand fully what he has applied for.

You may want to click the link i've provided as it tells you what an Attorney can and can't do.

https://www.royallondon.com/media/good-with-your-money-guides/power-of-attorney-explained/

Bleiddyn

Halifax, who he has an account managed by me under PoA  said he would not be eligible for a credit card, and I take this as indicative for all high street banks.  
I had a 3/4 hour conversation with Santander this morning (with whom he also has an account) and they were not even willing to issue a debit card for him (which he has with Halifax).  They insisted it had to be a 'cash card' and could only be issued to him in person in a branch.  With our local Santander branch closed it would have been useful to even have a cash card for him, but we will not be seeing him now for another couple of months.  His day to day support is managed by a disability charity where he lives some miles away.

Sandtree

Given a lack of history then he is more likely to be accepted by sub-prime offerings if his main current account bank arent interested. 

Bleiddyn

Such as ...?  Any recommendations?

Bleiddyn

I am new to the forum.  I have been unable (the box does not appear) to make a personal reply to all the commenters, but thank you.  I do keep his transactions separate from mine, rather than possibly having to explain to social services transfers from his account to mine where I have made credit card purchases for him.  I do realise that this would give s.75 protection for the purchase.

Sandtree

Look at Credit Cards for Bad Credit: top credit building cards - MSE (moneysavingexpert.com) - having no credit history is the same as bad credit history

Bleiddyn said:

I am new to the forum.  I have been unable (the box does not appear) to make a personal reply to all the commenters, but thank you.  I do keep his transactions separate from mine, rather than possibly having to explain to social services transfers from his account to mine where I have made credit card purchases for him.  I do realise that this would give s.75 protection for the purchase.

You have to make sure the invoice is to you though... if you look at the Financial Ombudsman website you will find hundreds of decisions where a parent has paid something for their kid (weddings seem a very common one) but the S75 claim failed because the invoice/contract was in the childs name and therefore broke the required Debtor, Creditor, Supplier chain. 

born_again

Bleiddyn said:

I am new to the forum.  I have been unable (the box does not appear) to make a personal reply to all the commenters, but thank you.  I do keep his transactions separate from mine, rather than possibly having to explain to social services transfers from his account to mine where I have made credit card purchases for him.  I do realise that this would give s.75 protection for the purchase.

S75 would not be based on the fact that your son has since paid you for the item. In fact that might have the reverse effect.

TBH. If you are planning on large purchases for your son via your CC. I would ask them if it would be covered. As it will be them that will deal with the issue. While S75 is a legal protection. You will find that different card companies have different takes on the legal view point.
Some will cover additional card holders, other will not. 
So you could ask your card provider if they cover additional card holders in the event of problems. If they do then request a additional card for your son & use that for his purchases. As it is your responsibility to pay the bill & any problems, there should be no issue getting him a card.

dr_adidas01

Bleiddyn said:

Such as ...?  Any recommendations?

Capital One
Aqua 
Marbles
Vanquis 
Barclaycard Forward Credit Card

If you do a search for credit building cards U.K. these are the ones that generally come up.