Section S75

Mariolanza

My husband took out a funeral plan in 2020.

He paid the deposit by credit card and the balance by Direct Debits.

The company went into bankruptcy last year, leaving over 40 000 members without a plan.

In addition, my husband changed credit card providers. 
We understand that he will be able to claim a full refund under Section 75 of the credit card Act 1974, even if the account is closed  as is the case.

Has anyone else encountered this type of situation?

born_again

Yes you can do a S75 on a closed acc.

But this may not be covered. 

Mariolanza

Thank you. Can I ask what you mean with "this may not be covered"? 
I read of someone who had paid a very small deposit on an £8000 credit. The person received the whole amount back because he used his credit card to start off.

MorningcoffeeIV

Mariolanza said:

I read of someone who had paid a very small deposit on an £8000 credit. The person received the whole amount back because he used his credit card to start off.

That's how it works. He would have had the same result if he"d used his card to pay just 1p.

It also doesn't need to be used 'to start off'.

Grumpy_chap

Funeral Plans may be covered by FSCS protection. 
https://www.fscs.org.uk/what-we-cover/funeral-plans/

If that is the case, it may be that S75 is not relevant.

born_again

Mariolanza said:

Thank you. Can I ask what you mean with "this may not be covered"? 
I read of someone who had paid a very small deposit on an £8000 credit. The person received the whole amount back because he used his credit card to start off.

There is never a 100% guarantee on S75, as there are many variables involved.