Section 75....Have I understood this correctly?

[Deleted User]

If a family member buys a holiday or other item for over £100, but below £30,000.01p, but I pay for it with my credit card and the family member in turn pays me, the purchase does not get Section 75 protection.

Is this correct?

lisyloo

Yes that’s correct.

[Deleted User]

Thank you.

phillw

Especially if you aren't going on the holiday yourself

DullGreyGuy

said:

If a family member buys a holiday or other item for over £100, but below £30,000.01p, but I pay for it with my credit card and the family member in turn pays me, the purchase does not get Section 75 protection.

Is this correct?

For S75 there is a requirement for there to be direct relationships between the debtor (you), the creditor (your card issuer) and the supplier. In this case you say your family member is the purchaser and so there is no relationship between you and the supplier and so any S75 claim would fail. 

Gifts are not excluded from S75 and so if you were the buyer then S75 may work however travel often involves agents which also cause problems for S75 as they sit between the buyer and the supplier

phillw

DullGreyGuy said:
Gifts are not excluded from S75 and so if you were the buyer then S75 may work 

The issue is you can't gift a holiday, it has to be bought in the name of the person whom the holiday is for.
You can gift the money to pay for the holiday, but then that breaks S75 (unless they use the money to pay on their credit card..)

If you buy a holiday for you and your friends to go on & you pay for all of it on your credit card, then the likelihood is that only people who are in your immediate family would be covered by S75.