S75 claim

BriNylon
BriNylon Posts: 146
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edited 15 December 2023 at 8:08PM in Credit cards
I paid a tradesman a deposit of £1k on my credit and the balance of £3k by bank transfer. 
Various problems with the work so credit card company has paid the £1k back to me.  Credit card company says bank have to refund the rest.
When does the tradesman get notified of this?
secondly, is that right?  The bank must refund the rest?
Thirdly, tradesman has caused me loss because of his workmanship. I know know that s75 covers this also.  Who refunds this?
Does the  credit card company claw that back from tradesman or do they bear that loss?

Comments

  • km1500
    km1500 Posts: 2,120
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    edited 15 December 2023 at 9:22PM
    if the CC agrees 4k should be refunded (they seem to be saying this) then under S75 the credit card should refund the whole 4k despite only1k being put on the card
  • From what you've described, it was a chargeback, not s75.
  • BriNylon
    BriNylon Posts: 146
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    The cc company say the bank has to pay the difference.  What is the difference between a s75 claim and a chargeback. 
  • S75 means the credit card pays the full amount.

    Chargeback means they reverse the amount paid on the card only.

    You have a chargeback.
  • Interested to know who and why it has been decided that you should be getting a full refund of 4k  due to % "Various problems" with the tradesmen
  • eddddy
    eddddy Posts: 16,143
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    edited 16 December 2023 at 10:53AM
    BriNylon said:
    What is the difference between a s75 claim and a chargeback. 



    A S75 claim is for losses resulting from a breach of contract.

    Examples of how the tradesman might have breached the contract...

    Example 1
    • He didn't do everything you both agreed and you paid him to do (and he is still refusing to do it)
    • It will cost you £1.5k to get another tradesman to do the missing work
    • So you can claim that £1.5k from the bank, using a s75 claim

    Example 2

    • He didn't do the work with "reasonable care and skill" - so the results are shoddy (and he is refusing to put right the shoddiness)
    • It will cost you £2.5k to get another tradesman to correct the shoddiness
    • So you can claim that £2.5k from the bank, using a s75 claim


    So for a s75 claim, the bank will want to see
    • details of the original contract
    • details of the contract terms that were breached
    • quotes for putting right the resulting problems
    • and they'll probably also want a inspection report from an independent expert to confirm that the problems really do exist, and they were a result of a breach of contract


  • BriNylon said:
    When does the tradesman get notified of this?
    secondly, is that right?  The bank must refund the rest?
    Thirdly, tradesman has caused me loss because of his workmanship. I know know that s75 covers this also.  Who refunds this?
    Does the  credit card company claw that back from tradesman or do they bear that loss?
    Chargeback - a week or so after the claim, they then have a window to contest it.
    S75 - they don't get notified

    Chargeback - in principle its correct, its limited to the amount paid however the bank won't have a mechanism to refund a BACS/FasterPay payment.
    S75 - no, there is no cap on liability and so it would all be claimed against the credit card

    Chargeback - the merchant's bank initially, they recover it from the tradesman
    S75 - your bank, they have a right of recovery but they don't typically exercise it

    Interested to know who and why it has been decided that you should be getting a full refund of 4k  due to % "Various problems" with the tradesmen
    No one has, chargeback has been done and it's a crude tool. The OP will be temporarily refunded the £1k up front and the vendor then has the opportunity to dispute it. Assuming the vendor wins then the OP gets charged the £1k again. 

    The card company has said to speak to the bank regards the remaining £3k which won't go anywhere as there is no mechanism for this. 

    If it had gone down the S75 route then the bank would have asked for much more detail and decided what an appropriate award would be to rectify the issues... namely by the OP having to supply quotes and/or an expert report that should opine on such matters.
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