Section 75 on Credit Card

Dipak

Hi All,

Does you know whether the Section 75 covers Business Credit Cards or just personal ones?

I thought it did but im being told by my credit card provider that they won't as its a business credit card.

Thanks again, D

eskbanker

Section 75 is part of the Consumer Credit Act 1974, and protects purchases made under a qualifying credit agreement, so if the account holder (as opposed to the card holder) is an incorporated business then purchases won't be covered by s75.

Dipak

eskbanker said:

Section 75 is part of the Consumer Credit Act 1974, and protects purchases made under a qualifying credit agreement, so if the account holder (as opposed to the card holder) is an incorporated business then purchases won't be covered by s75.

Thanks @eskbanker do you know where there is a equivalent thing that exist for incorporated business with a company credit card?

eskbanker

Dipak said:

eskbanker said:

Section 75 is part of the Consumer Credit Act 1974, and protects purchases made under a qualifying credit agreement, so if the account holder (as opposed to the card holder) is an incorporated business then purchases won't be covered by s75.

Thanks @eskbanker do you know where there is a equivalent thing that exist for incorporated business with a company credit card?

I don't believe there is any equivalent protection for businesses, who are effectively assumed to be able to negotiate B2B contracts with their suppliers rather than having to rely on overarching customer-friendly consumer rights legislation.

Assuming this isn't an entirely hypothetical discussion, what's the actual situation here?

Wonka_2

Dipak said:

eskbanker said:

Section 75 is part of the Consumer Credit Act 1974, and protects purchases made under a qualifying credit agreement, so if the account holder (as opposed to the card holder) is an incorporated business then purchases won't be covered by s75.

Thanks @eskbanker do you know where there is a equivalent thing that exist for incorporated business with a company credit card?

As @eskbanker says - the equivalent is a contract and the assumption that B2B transactions are carried out using one or that due diligence has been carried out as part of the usual business processes.

That said there's probably a significant gap in the market now that many 'businesses' are actually sole trader without the significant legal backing or in-house support. Does your business banking offer any support for dispute resolution ?

DullGreyGuy

Wonka_2 said:
That said there's probably a significant gap in the market now that many 'businesses' are actually sole trader without the significant legal backing or in-house support. Does your business banking offer any support for dispute resolution ?

Now that? I'm not sure the numbers are growing, in fact according to the government website the proportion of sole proprietorships is dropping (unfortunately data range is only 2013 to 2022)

I think the issue is much less the lack of statutory protections for vSMEs but more the cavalier approach that's being encouraged that anyone can run a business and a few clicks online and your ready to start trading. The higher barrier to trading at least meant you'd have engaged with more professionals, spent more time considering things before actually starting. 

Whilst S75 doesn't exist for businesses, chargeback still does

Dipak

I purchased some airline tickets using the company credit card, instead I should have used personal one. Never mind, an expensive lesson learnt. 

eskbanker

Dipak said:

I purchased some airline tickets using the company credit card, instead I should have used personal one. Never mind, an expensive lesson learnt. 

Chargeback may still be an option, depending on the dates concerned and what the issue was....

Or if this is a large company, where you're not employer and employee, and the flights were for business purposes, will your employer cover any losses?

born_again

Dipak said:

I purchased some airline tickets using the company credit card, instead I should have used personal one. Never mind, an expensive lesson learnt. 

What was the issue?

Dipak

born_again said:

Dipak said:

I purchased some airline tickets using the company credit card, instead I should have used personal one. Never mind, an expensive lesson learnt. 

What was the issue?

I purchased tickets and the flight was awful, toilets out of order, the televisions weren't working they ran out of drink. I wouldn't have minded if it was a short flight but when you have kids and your on a 9 hour flight its not the best way to finish a holiday.

Wonka_2

Dipak said:

born_again said:

Dipak said:

I purchased some airline tickets using the company credit card, instead I should have used personal one. Never mind, an expensive lesson learnt. 

What was the issue?

I purchased tickets and the flight was awful, toilets out of order, the televisions weren't working they ran out of drink. I wouldn't have minded if it was a short flight but when you have kids and your on a 9 hour flight its not the best way to finish a holiday.

In which case irrespective of business or personal card it's unlikely to be covered under an S75 claim which is there to cover tangible unrecoverable losses (i.e. cancellation/airline going bust etc)

Presumably you've complained to the airline and exhausted their complaints procedure ?