Credit card claim for cancelled holiday

DullGreyGuy

Manxman_in_exile said:

Ath_Wat said:

Manxman_in_exile said:

Ath_Wat said:

Manxman_in_exile said:

Further to my previous post (and to answer the actual question you are asking... ) my understanding is that you can only make a successful s75 credit card claim if the person suffering the loss is the person who's card paid for the item/service in question.

In this case your card paid for your son's travel insurance with a different provider from your own travel insurance in an entirely separate transaction.  If your son's insurer doesn't pay out, my understanding is that you have no claim aginst your credit card.

If you buy a "gift" for somebody else on your credit card, you can't rely on you being able to make a claim on your card.

(NB - my less than perfect understanding of how s75 works is that their must be an unbroken Debtor - Creditor - Supplier link.  If you buy something on your credit card for somebody else, you run the risk of breaking that crucial link.  If you want to "treat" people, let them buy it and then give them the money... )

I think we need to be clear that in any event what you are talking about here is getting back the cost of the insurance - what the OP wants back is the cost of the holiday.

Is this point by @Ath_Wat relevant or not?

If somebody buys an insurance policy on their credit card, and the insurance company does not (for whatever reason) pay out on what would otherwise be a valid claim, is the credit card provider then liable to pay the claim under s75?

If the insurance company have gone out of business, there might be an argument.

If, as in this case, they are saying the claim is not valid, then I imagine the bank will just say "they are saying the claim is not valid" - otherwise they would have to pay out on every rejected insurance claim anyone ever makes.

If the insurer has gone out of business, I would have thought this would be covered in the first instance by some kind of "insurer of last resort" - like the MIB with motor insurance - rather than the card provider.

I agree I'm not sure that the card provider should end up with open-ended insurance claims.  They aren't in the business of insurance...

The FSCS steps in for an insolvent insurer, though as a non-compulsary class of insurance they only cover 90% of the claim.

Why shouldn't a credit provider step in for an insurance company but should step in for a computer company? Banks equally aren't computer manufacturers as they aren't insurers.

S75 simply states that if the debtor has a claim for misrepresentation or breach of contract against the supplier then the creditor is jointly and severally liable to the debtor. If you claim they are in breach of contract either because of their decision on your claim or due to insolvency then you have the choice of going to the FOS/FSCS or to your credit card issuer. 

Depending on the setup however you may find the D-C-S chain is broken if there is an intermediary in the sales process. Have no idea how companies or the FOS consider things like MGAs or white labels in relation the D-C-S