Chargeback,Section 75 Question

Sevennotemode

Could somebody  advise  on this please.

Bought a wooden building for £2,500.

Paid £1,500 deposit on credit card,balance £1,000 by bank transfer.

Very quickly the building became damp,mouldy,doors warped and more recently the roof blew off as it wasn't fixed on with any screw fastenings.

Clearly,not fit for purpose and I want a refund.

After messaging the  merchant  5 times  he didn't reply at all.

Did a chargeback with credit card company for the £1,500.All okay received the credit back in my account and it has now been made permanent.

The merchant then  sues through small claims.The claim has been vigorously defended and i am quite sure we will win when it eventually gets to a hearing (long delays in county court at the moment).

My query is with the credit  card  company for the Section 75 claim for the remaining £1,000.

When I told the cc company about the small claims case they said that it was nothing to do with them and that they couldn't  advise or comment. (fair enough I thought at the time) 

Latest is that the cc company say I must await the outcome of the small claims case before they can give a verdict on the £1,000 under a Section 75 claim.

So,the cc company have now decided that they want to hide behind the small claims case before they pay out - can they now decide to use the small claims case as a reason to delay paying out the Section 75 claim? 

It seems a bit unfair that ,(when it suits them,) small claims cases are nothing to do with them but if it can be used as a way of frustrating a Section 75 claim then they are interested.

[Deleted User]

They're not hiding behind the small claims court.

You're asking them to take responsibility for sub standard work/product. The small claims court case will determine if the work is sub-standard, so they'll wait for that. There is no point in them running a concurrent investigation, which would take even longer.

Sevennotemode

Thanks zx81 for your reply, very useful.

I thought that the cc company had already done their investigating as they approved the chargeback after I had provided extensive details and photographs of the sub standard work.

Surely,they wouldn't approve a chargeback if they were unsure of the quality of the work ?

[Deleted User]

Yes, they would. A chargeback is a simple reversal against the company. The card company doesn't pay.

You're now asking them to put their hands in their own pockets.

Ganga

If you pay even a percentage of the bill with a credit card can you not claim back the full cost ? i am sure i read this on this forum .

eskbanker

Ganga said:

If you pay even a percentage of the bill with a credit card can you not claim back the full cost ? i am sure i read this on this forum .

Chargeback only applies to the actual amount paid with the card.

Section 75 covers the whole transaction, which is why it'll be used to recover the rest after a successful chargeback for the card portion here.

Sevennotemode

Many thanks all for your input,very helpful.

Sandtree

Sevennotemode said:

I thought that the cc company had already done their investigating as they approved the chargeback after I had provided extensive details and photographs of the sub standard work.

Chargeback - money clawed back from the seller

S75 - money comes from your banks pocket

Any need to explain why one is more contested than the other?

Chargeback is a very light process, normally, and most go through undefended. If you look at small business forums then many say its pointless defending because the process is loaded (not commenting on if this is true or not). That said "never delivered" type complaints will auto-fail if the sender can provide any form of evidence of delivery (as I say, its light touch).

S75 comes from your bank's own pocket so no surprise they will investigate much more. With the courts already engaged to decide liability to some degree its understandable that they'll wait but as most small track claims judgements are handed down verbally they'll be limited in what they can gain from the judgement to decide their own resolution.

Sevennotemode

Just one final question on this.

Assuming I win the small claims case and the cc company eventually credit me with the £1,000,do they then try and recover this from the merchant?  Or do they  suffer the loss themselves ?

Sandtree

Sevennotemode said:

Just one final question on this.

Assuming I win the small claims case and the cc company eventually credit me with the £1,000,do they then try and recover this from the merchant?  Or do they  suffer the loss themselves ?

Banks very rarely attempt to recover S75 claims from the merchant so most likely it will be their own loss

born_again

Sevennotemode said:

Just one final question on this.

Assuming I win the small claims case and the cc company eventually credit me with the £1,000,do they then try and recover this from the merchant?  Or do they  suffer the loss themselves ?

Out of banks pocket. It is not cost effective to recover funds from retailer. legal expenses far outweigh any return.