Section 75 protection question

8 Posts

in Credit cards
Hi, new here.
I am about to invest in a PV solar array with battery storage and thinking about a way to pay that gives me the best protections.
My question is quite specific:-
If my dad paid the deposit on his Credit Card and I paid the balance (and him back), would Section 75 apply if there were any issues?
I do not have a credit card - it was canceled due to non-use, and I have no further need of one.
Many thanks.
I am about to invest in a PV solar array with battery storage and thinking about a way to pay that gives me the best protections.
My question is quite specific:-
If my dad paid the deposit on his Credit Card and I paid the balance (and him back), would Section 75 apply if there were any issues?
I do not have a credit card - it was canceled due to non-use, and I have no further need of one.
Many thanks.
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I rang the Financial Services Ombudsman (0800 0234567) to ask the same question, and their advice was it would be covered under S.75.
So, a little puzzled now.
Second cardholders and section 75
The position is a bit more complicated if the purchase is made by a second cardholder, such as a husband, wife or partner.
Any claim must be made by the main cardholder, as they’re the one who signed the credit agreement, and the credit card company might reject a claim if it wasn’t a joint purchase such as a family holiday or something for the main cardholder (such as a birthday present).
It’s a bit of a grey area so it’s worth checking with the card issuer when you start your claim.
In effect the card holder has to benefit from the purchase. Which clearly as your father paid for it & your are paying him back, he would not be gaining any benefit from the purchase. As well as not living at the address. Which would be very clear from invoices etc.
In effect your father could be classed a 3rd party payment processor.
Best bet would be for your father to ring his card company & ask. But he needs to make it very clear exactly what the plan is.
Also S75 is not a cover all insurance policy.
2) The FOS is not bound to follow the exact letter of the law or what a court would do. There are a number of decisions made by the FOS on S75 where they have explicitly acknowledged that a court may have come to a different conclusion.
The law www.legislation.gov.uk/ukpga/1974/39/section/75 is very clear in the very opening clause of the section... If the debtor under a debtor-creditor-supplier agreement... your father is the debtor, his bank is the creditor but he has no relationship with the supplier because you are the buyer and so a forth party to the arrangement which breaks the terms of S75
It is very easy resolution though, if your father is the buyer of the solar panels on the invoice and contract then the D-C-S relationship exists and S75 applies. The fact he is getting them installed on another property or that you intend to refund him is irrelevant to S75. It may be relevant to any grants etc however.
The overall cost would be ~11k, which I will pay for outright on completion. There no grants currently for PV installation.
The FOS guy asked several colleagues who all agreed that it would be covered.....
It won't affect my decision to have them installed, it's just an added layer of comfort that I may have options if anything went wrong that would normally be covered under S.75.
Remember you only need to spend 1p on the card to get S75 cover so if you got a basic card even with a £200 limit, if the solar company accept card payments, put a deposit down of say £200 (you don't need to spend that much but firm is more likely to accept than you paying 1p)