Section 75 - can I claim if total is 30K+ but on two separate credit cards?

StarfishAndCoffee87

I would dearly like some advice if anyone has any insight on this. I entered into a contract with a company (independent business, not a big high street brand) to supply and fit a bespoke kitchen. Deposit paid of c.11K last May 2021, then three further payments of c.25K on a new credit card in Oct-Nov 2021. Delivery and fit commenced in Nov-Dec. Was due to be complete in Jan. Accepted through Feb and March that there were delays with appliances. Then missing furniture. Then damaged worktop. Faced up to fact in last few weeks that they are fraudulent and clearly have no intention of completing the job. I'm looking into legal action, and have spoken into the CAB.

They said I may be able to use section 75 to try to reclaim costs. My understanding is that Section 75 covers purchases between £100-30K, above that and it's 75a which seems more complicated.

However, given that I paid using two different cards, and neither of those amounts exceeds £30K, does anyone know if  would be able to start a Section 75 claim with each lender for the amounts I paid via their respective credit cards?

eskbanker

Much will depend on how it's all been invoiced - section 75 applies to items valued at between £100 and £30K....

bris

No the S75 will not work, it's not about how much you put on the credid cards it's about how much the total cost was.

All you can do is give them a call and try and make a case.

sheramber

Was teh second card a completely new card or was it an update for the original card going out of date?

Olinda99

If they were separate contracts then yes

So, for example,

Payment 1 was for supply of oven, fridge, freezer, dishwasher etc

Payment 2 was for fitting  LHS of kitchen

Payment 3 was for fitting RHS of kitchen

etc etc

If all the same contract then no.

MH1927

Section 75a is for linked Credit Agreements. "The specific goods or provision of a specific service are explicitly specified in the credit agreement"

Its extremely rare for credit card agreements that the spending is specified in the credit agreement.

As an example, if you had purchased a car and taken dealer finance you would be covered under 75a up to £60,260.

AmberDepp

MH1927 said:

Section 75a is for linked Credit Agreements. "The specific goods or provision of a specific service are explicitly specified in the credit agreement"

Its extremely rare for credit card agreements that the spending is specified in the credit agreement.

As an example, if you had purchased a car and taken dealer finance you would be covered under 75a up to £60,260.

No.

The total value is important here.

As I see it "Deposit paid of c.11K last May 2021, then three further payments of c.25K on a new credit card in Oct-Nov 2021."

Means a deposit of 11k, and 75k in total on credit cards, which is nearly £86k!.

It's not based on the value of what you put on the cards but the value of the invoice.

And I can only hope the CC Co doesn't have to swallow your exorbitant kitchen costs.

Manxman_in_exile

AmberDepp said:

As I see it "Deposit paid of c.11K last May 2021, then three further payments of c.25K on a new credit card in Oct-Nov 2021."

Means a deposit of 11k, and 75k in total on credit cards, which is nearly £86k!.

It's not based on the value of what you put on the cards but the value of the invoice.

And I can only hope the CC Co doesn't have to swallow your exorbitant kitchen costs.

Welcome back!

I agree with you.  My immediate thought was that anyone who could afford to buy a kitchen costing at least (not "nearly"  ) £86k ought to be able to afford a lawyer to help them rather than slumming it down here with the plebs!

I do wish that people who started threads could write them clearly and unambiguously so anybody who read them could actually  understand them.  

Too much to hope for I suppose.  All part of the general and inexorable decline of civilisation I suppose...

StarfishAndCoffee87

Thank you to everyone for replying. My apologies for being unclear. The total cost of the kitchen including VAT and the fitter's costs is £42K. I completely appreciate this is a major sum of money for a kitchen. I've saved for 10 years and it was to be the dream forever kitchen, the one major luxury of the house. The deposit was for just over £11,000. Then the three further payments combined were c.£25,000 - made up of two lots of £7500 and then one of £8940. 
I appreciate all the responses - it sounds as if because the total is over £30,000, then section 75 won't work regardless of it being on two different credit cards. I applied for a new one specifically for the project, so the 2nd-4th payments were with a different lender.

MH1927

AmberDepp said:

MH1927 said:

Section 75a is for linked Credit Agreements. "The specific goods or provision of a specific service are explicitly specified in the credit agreement"

Its extremely rare for credit card agreements that the spending is specified in the credit agreement.

As an example, if you had purchased a car and taken dealer finance you would be covered under 75a up to £60,260.

No.

The total value is important here.

As I see it "Deposit paid of c.11K last May 2021, then three further payments of c.25K on a new credit card in Oct-Nov 2021."

Means a deposit of 11k, and 75k in total on credit cards, which is nearly £86k!.

It's not based on the value of what you put on the cards but the value of the invoice.

And I can only hope the CC Co doesn't have to swallow your exorbitant kitchen costs.

Reading comprehension not your strong point? I mean we all know it that's why your back with yet another new account to troll again!

The Italic part of my post is a quote from the legislation. The amount paid  is secondary to the fact it is not a linked credit agreement where "The specific goods or provision of a specific service are explicitly specified in the credit agreement". So even if the cost was below £60,260 (which is the limit for a 75a claim) it still wouldn't be covered.

I mean I literally gave an example of a 75a compliant agreement and even explicitly stated the max sum it would cover.

So no the total value is not important at all.

MH1927

StarfishAndCoffee87 said:

Thank you to everyone for replying. My apologies for being unclear. The total cost of the kitchen including VAT and the fitter's costs is £42K. I completely appreciate this is a major sum of money for a kitchen. I've saved for 10 years and it was to be the dream forever kitchen, the one major luxury of the house. The deposit was for just over £11,000. Then the three further payments combined were c.£25,000 - made up of two lots of £7500 and then one of £8940. 
I appreciate all the responses - it sounds as if because the total is over £30,000, then section 75 won't work regardless of it being on two different credit cards. I applied for a new one specifically for the project, so the 2nd-4th payments were with a different lender.

OP, check the status of the company on the companies house website.

Should show you whether they have assets to go after.