Does section 75 apply when buying multiple items under a single order which together exceed £30k?

eskbanker

DarrowOLykos said:

This is what Section 75 actually says. I have highlighted what I think is the relevant bit. I still plan to take proper advice but I think I am very likely to be able to get S75 protection, whether it be because the invoice is itemised or because I split different phases into different orders. I'll let you all know what they say.

As you correctly identify, the wording in the legislation itself is brief and simple, but that leaves plenty of scope for interpretation, so there isn't necessarily a 'right' and a 'wrong' answer, as much will depend on the stance taken by an individual creditor and any legal precedent they choose to cite, together with the case-specific way in which contracts/invoices are prepared and documented.

On the face of it, an itemised list of individual doors and windows, on a supply-only basis without any overarching fitting and project management services, ought to comply with s75 even if totalling more than £30K, but if you're in a position to split the order, e.g. replacement of existing doors/windows and then, at another time, kitting out a new extension, that should IMHO protect you adequately....

DarrowOLykos

eskbanker said:

DarrowOLykos said:

This is what Section 75 actually says. I have highlighted what I think is the relevant bit. I still plan to take proper advice but I think I am very likely to be able to get S75 protection, whether it be because the invoice is itemised or because I split different phases into different orders. I'll let you all know what they say.

As you correctly identify, the wording in the legislation itself is brief and simple, but that leaves plenty of scope for interpretation, so there isn't necessarily a 'right' and a 'wrong' answer, as much will depend on the stance taken by an individual creditor and any legal precedent they choose to cite, together with the case-specific way in which contracts/invoices are prepared and documented.

On the face of it, an itemised list of individual doors and windows, on a supply-only basis without any overarching fitting and project management services, ought to comply with s75 even if totalling more than £30K, but if you're in a position to split the order, e.g. replacement of existing doors/windows and then, at another time, kitting out a new extension, that should IMHO protect you adequately....

This is solid advice. Thank you. 

lr1277

DarrowOLykos said:

lr1277 said:

Sorry to ask but you have found a supplier who will take a credit card as payment?

For that kind of amount,  I would have expected to have to pay by bank transfer. This is also based on one or two other threads I have seen on this forum.

Would you care to name the supplier in question?

Yes, @eskbanker is right. They only need to take a token payment. I asked them about it and they said they can take payment by card over the phone.

Not willing to name the supplier in this thread because it's too much identifying information, but I'd be happy to name them by DM if you want to send me a message. 

Thank you for your reply. Whilst I am not iinterested at this time, I suspect it is possible that other users may DM you for the name. I remember at least one thread where the poster couldn't pay for window replacements with a credit card and if memory serves they were wondering if they should go ahead.

Additionally I have had 2 sets of double glazing installed, the last time 10 years ago. Both times I had to pay by bank transfer.

born_again

I can say that we have rejected such applications. As it is taken that the extension is a single item/purchase, no matter how the invoice is broken down.

DarrowOLykos

I've just had a quick chat with the legal advisor at Which?. As a quick precursor, the advice below is specific only to my inquiry and anyone reading this in the future should take their own advice. 

The advisor was sceptical that itemising the contract would be sufficient to gain S75 protection and that any creditor would contest it heavily should we try to make a claim on that basis.

He agreed that the different phases of the job should be split into different contracts. The more that we can emphasise the separateness of those contacts, the better. His opinion was that a creditor would have no basis to reject claims against those contacts if each is less than £30k, even if they are greater than £30k when combined. 

I also asked if it would be a good idea to pay on two separate credit cards. He thought that would really underline the point and if the option is available to us we should take it. 

So, to summarise, itemising the contract would be messy and likely contested, but with separate contracts for each individual phase there could really be no basis for the creditor to contest an S75 claim. 

km1500

one thing I also remember hearing is to allow a little bit of time between the two contracts for example supply could be June and fitting could be August.