Section 75 Claim

MrSamR

Hi,
I claimed £5100 of my house development project which I lost due to the company went liquidated. The total contract value was £51000. I paid £25000 (credit card payment) when the project started. then had to cancel the project in the middle. However, since no work has been done due to the Covid pandemic they agreed to refund in full. I received a refund of £20000. But still, £5100 missing. Today I got my claim withdrawn due to exceeding the £30000. (not within £100-£30000) Is there anything I can do?

CliveOfIndia

Section 75 won't cover items over £30,000, as you've discovered.  You could potentially try a S75a claim as detailed in this article: https://www.moneysavingexpert.com/reclaim/section75-protect-your-purchases/

I'm not sure whether you'll get any success, but it's worth investigating.

born_again

Sadly not. As 75A would not come into play as this is not linked finance either. Which has nothing to do with CC, just a single finance provider financing the item.

Well at least you got the bulk back.
Only option would be Money Claim Online, but that requires them to have the funds to pay you out.

DullGreyGuy

MrSamR said:

Hi,
I claimed £5,100 of my house development project which I lost due to the company went liquidated. The total contract value was £51,000. I paid £25,000 (credit card payment) when the project started. then had to cancel the project in the middle. However, since no work has been done due to the Covid pandemic they agreed to refund in full. I received a refund of £20,000. But still, £5,100 missing. Today I got my claim withdrawn due to exceeding the £30,000. (not within £100-£30,000) Is there anything I can do?

Firstly, put commas into your numbers so they are much easier to read

Secondly, how did you pay the remaining £5,100?

S75 covers items between £100 and £30,000... its not a case of covering the first £30,000, if the item is over £30,000 there is no protection at all. S75A also exists but this is where the merchant arranges the finance for you, aka Linked Finance, and whilst it would have helped you in this case potentially this is still limited to purchases up to just over £60,000.

If the remainder was also paid by a different card then a chargeback on that card would recover the remaining outstanding amount.

MrSamR

Thanks for your advice, I always thought I was covered, I even paid extra amount to use credit card so I have the cover.  I never thought about the max value, I thought if I do a claim I am covered up to £30000. This is a good learning for the future. 

MrSamR

“Secondly, how did you pay the remaining £5,100?”

I used 2 credit cards, 2 occasions. 

First payment £4,500 card 1 and £600 card 2

Second payment £10,000 card 1 and £10,000 card 2.

DullGreyGuy

MrSamR said:

“Secondly, how did you pay the remaining £5,100?”

I used 2 credit cards, 2 occasions. 

First payment £4,500 card 1 and £600 card 2

Second payment £10,000 card 1 and £10,000 card 2.

Then just chargeback the first set of transactions, there is only time limits on Chargeback and no financial limits

eskbanker

DullGreyGuy said:

MrSamR said:

“Secondly, how did you pay the remaining £5,100?”

I used 2 credit cards, 2 occasions. 

First payment £4,500 card 1 and £600 card 2

Second payment £10,000 card 1 and £10,000 card 2.

Then just chargeback the first set of transactions, there is only time limits on Chargeback and no financial limits

As I understand it, the maximum time for chargeback is 540 days from payment, for a future-dated purchase, so was assuming that this won't be an option here if the project didn't proceed due to long-lifted Covid restrictions, as implied by:

MrSamR said:

...since no work has been done due to the Covid pandemic they agreed to refund in full...

MrSamR

I don’t think I can do anything now, project was started December 2020. Agreed to cancel in August 2021. Company liquidated September 2022. It is over 2 and half years. 

Thanks all for your valuable information.

born_again

DullGreyGuy said:

MrSamR said:

“Secondly, how did you pay the remaining £5,100?”

I used 2 credit cards, 2 occasions. 

First payment £4,500 card 1 and £600 card 2

Second payment £10,000 card 1 and £10,000 card 2.

Then just chargeback the first set of transactions, there is only time limits on Chargeback and no financial limits

540 days to today is a payment made on 13 dec 2021 Given the mention of the pandemic, would have to take it that the £5,100 was made pre pandemic.

Card providers rules are a Max 540 days from date of payment, even if you had something that would bring it back within 120 days.