Help re S75 claim for multiple items that in total exceed £30k

HaleTommo

Looking for some help so I don’t get tripped up here ..I am having various works in my back garden. One aspect is a garden room. The kit for this comes from a supplier. The installation and other surrounding elements are being done separately by a builder. The kit I am buying are gardenroom pods. I am buying 3 pods which each cost less than £30k, but together the 3 of them cost more than £30k. Eg 3x£15k each. And some associated supporting parts which are smaller £s. The overall cost of the parts is >£30k. The 3 pods are separable in that they are modular. So you can buy 1,2,3 and bolt them together etc.
If i spend say £50k with this supplier, with the invoice showing 3 pods @£15k=£45k, and 3 x supporting bits @ 3x£1k each, and 2 connector to fix them together at 2x£1k - priced separately and itemised into 8 items, but I pay in one go - with say 10% on credit card an balance cash transfer/debit card. Does this provide full cover under s75 if the supplier goes bump.

I could buy each pod separately etc with separate invoices if this helps - but sort of feels like I shouldn’t have to as its 8 separate items - albeit they will be being all put together once we get them, into one room.
Any help much appreciated.
thanks 

eskbanker

Assuming its other conditions are met, section 75 applies if the value of each item is between £100 and £30K, so one invoice itemising everything should be OK.

https://www.legislation.gov.uk/ukpga/1974/39/section/75

[it] does not apply to a claim [...] so far as the claim relates to any single item to which the supplier has attached a cash price not exceeding £100 or more than £30,000

Sandtree

You just need to make sure it shows its 3 pods at £15k each rather than a 3 Pod special for £45k

Given the values involved inevitably the bank are going to kick the tyres to ensure it truly was three separate items and not one "pack" containing 3 pods which they've artificially attempted to make look like 3 items to get it within the CCA limits. 

born_again

Odds on as it is going to be one room they will view it as a total price.

End of the day you do not need S75 if retailer goes bust. That will be a chargeback.

Sandtree

born_again said:

End of the day you do not need S75 if retailer goes bust. That will be a chargeback.

As long as its paid by debit card, the OP mentions a cash transfer as a possible settlement mechanism for the balance. 

cx6

for extra safety you could buy each pod on a separate credit card.

HaleTommo

All very helpful thanks. 

If I kept it on one itemised invoice and the company went bump - then would you have to do multiple s75 claims for each individual item?

Sounds like 3 sep invoices with 3 credit cards and debit card for balances is the belt and braces approach? 

Sandtree

Company goes belly up then as long as all has been paid on plastic and its within the time limits then its a chargeback for which there is no cap.

S75 would be more about if the thing turns out to be junk and the merchant refuses to help or has since gone bust in which case you are time barred from a chargeback and CCA steps up. Unless you put each pod onto a different credit card there is always the risk that the lender will state it was a single item in reality and it was a fudge to try and slide it into the limits of the CCA.... like buying a car and saying you are paying £30k for the body and £25k for the engine so its two items and both in scope, the lender will say it was an assembled car so you really paid £55k for the car despite the invoice.

Remember when my parents refitted the kitchen just after my father started his own company and the guys asked if they wanted the invoice written up as an office fit out instead so he could put it through the accounts... unfortunately banks and HMRC are wise to what some do.