Section 75 eligibility.

Topcat2007

Hi. My son is buying a car.  He does not have a credit card. If my husband pays the deposit on our credit card or even all of it on our credit card does this invalidate Section 75 protection? The car will be registered and insured in son’s name at the point of purchase. Thank you. 

Brie

from the Which website.....not quite the same but similar.  So if son was added as an additional card holder it would definitely be covered.  Even if he never actually had a card to use.  (i.e. you/your husband don't give him the card)

What happens if you have additional cardholders?

If somebody else such as your partner has a credit card and has added you as an additional cardholder, it's usually best to get the main cardholder to make any big purchases, rather than using the extra card yourself.

This doesn't mean that purchases made by a secondary card holder will never be covered, but it's best for the primary card holder to make larger purchases if you want to be sure of protection under Section 75.

redelizabeth01

As I understand it, Sec 75 gives the CARDHOLDER the benefit of claim therefore it would be your Husband who would make a claim.

Mark_d

Agree it's the cardholder who has the benefit of the claim.  However it's a grey area if section 75 would apply where the cardholder is buying something in the name of someone else.

born_again

redelizabeth01 said:

As I understand it, Sec 75 gives the CARDHOLDER the benefit of claim therefore it would be your Husband who would make a claim.

But odds on would be rejected as they do not own the car..

TBH, odds of OP needing S75 is slim.

km1500

Husband could buy and register car in his name. Son uses it.

Dobbibill

Is there any reason your son doesn't have a credit card? Could they apply for one before the purchase of the car to pay a small deposit on it?

DullGreyGuy

There is a case linked to on here many times exactly about a parent buying their child a car using their credit card. 

The Ombudsman ruled, inline with the law, that as long as the credit card account holder is the legal purchaser of the vehicle it doesn't matter that the child is the registered keeper, that the car is delivered to them etc. 

Unless there is a reason why they cannot get a basic credit card it would be less hassle for your son to get a credit card account in their own name and avoid the potential argument over if the DCS chain is broken or not. 

Nasqueron

km1500 said:

Husband could buy and register car in his name. Son uses it.

Only danger being the husband gets the NIP and letters to RK if son speeds or gets stung by a parking cowboy, not insurmountable of course and CC company would never need to know

etienneg

The other difficulty with father being the registered keeper would be insurance. When the son buys insurance, the company would likely ask if he is the registered keeper. Not answering truthfully would be fraud, which would invalidate the insurance. Further questions would probably follow a truthful answer, which may or may not cause problems.

If the father tried to insure the car with the son as an additional driver, the company would ask who would be the main driver. Again, answering untruthfully would be fraud and invalidate the insurance, and a truthful answer would raise further questions. It would also not build the son a no claims bonus.

Nasqueron

etienneg said:

The other difficulty with father being the registered keeper would be insurance. When the son buys insurance, the company would likely ask if he is the registered keeper. Not answering truthfully would be fraud, which would invalidate the insurance. Further questions would probably follow a truthful answer, which may or may not cause problems.

If the father tried to insure the car with the son as an additional driver, the company would ask who would be the main driver. Again, answering untruthfully would be fraud and invalidate the insurance, and a truthful answer would raise further questions. It would also not build the son a no claims bonus.

Insurance will usually be ok with the RK being different to the insured person, provided the named main driver is the main driver i.e. not fronting. Some might not like the RK being different of course but it would still not affect the S75 stuff - though as ever people do need to be careful and understand what S75 is, plus their rights when buying second hand - e.g. CC aren't going to simply pay out to replace the car if the engine fails after 9 months on a car with 200k miles on it