Section 75 question

born_again

Okell said:

born_again said:

ArbitraryRandom said:

calog said:

I think I have learnt a lesson today regarding section 75.
I paid a deposit with my credit card towards an item worth £35k. I wrongly thought I could claim the £30k covered by section 75 but it was brought to my attention by the credit card company that as the total cost of the item was over the £30k limit section 75 didn't apply.
My question is - how can you cover yourself in such an event? Is there any other way to get protection for over £30k.
thanks.

The best advice has already been given - S75 makes your card provider jointly liable, so while it's easier than a civil suit, your alternative is a letter before action to the seller and court (doing your due diligence that the time/cost is balanced by your chance of success and enforcement). 

Depending on the purchase, the only other avenue I think you could attempt would be splitting the cost across more than one purchase - for example, if the payment is for building work, as for separate invoices for phases of the work (not scheduled payments, treating them as different jobs) or for materials vs labour; if it's for a home theater system, then perhaps the system and the install could be broken down to separate transactions. Obviously if it's £35k on a single piece of jewellery with free delivery that's not going to work  

The danger is if you use one card, then there is a strong chance it will get picked up, or a slip up is made by the claimant about the purchases. 

What will get picked up?  That the total cost of all the work will exceed £30,000?

To play Devil's Advocate for the moment, you have (I think?) often pointed out that s75 only applies to purchases of single items where the price exceeds £100 per item up to a maximum of £30,000.

So for example a s75 claim would not apply to a transaction totalling £350 made up of the purchase of five separate items, each costing only £70.  If I've understood correctly.

So couldn't the same argument be used - but the other way round - to make s75 apply to a single transaction costing >£30,000?

So @ArbitraryRandom or @Grumpy_chap or whoever could have their garden landscaping project completed at a total of £50k, but have the invoice itemised in such a way that no "single item" (in the words of the legislation) exceeded £30k, so that s75 would apply?

No doubt I'm missing something obvious, but what?

The people that look at these, know the tricks & if they see anything that looks like a case of building work or such, they will question & if it comes out that that is the case. It will be asked the total cost. 
Remember as people have often paid via bank transfer for some/lot of the work & are wanting that back. So trying to fudge the truth the truth will see issues for them in their claim.

No, you are right for S75 a item has to be over £100 & under £30K.

This is a example we get given in training & many get it wrong 1st time. If you buy a SUIT that costs £150, but is billed £75 trousers & £75 jacket. Is it covered?
The answer is YES, as a suit is counted as 1 item due to the description, not how retailer has billed it as each part of the order.

So in the case of building work, they take the same approach. What is the total cost, not just the individual parts of the work.

DullGreyGuy

born_again said:
This is a example we get given in training & many get it wrong 1st time. If you buy a SUIT that costs £150, but is billed £75 trousers & £75 jacket. Is it covered?

The answer is YES, as a suit is counted as 1 item due to the description, not how retailer has billed it as each part of the order.

Would be curious as to know more detail on the training   @born_again

If my receipt simply says Trousers £75 and Jacket £75 with no mention of "suit" do you just assume its a suit?

What if it says Navy Wool Suit Trousers £75 and Tobacco Linen Suit Jacket £75? Do you assume it's not a suit because of the different colours/materials?

How about if its Suit Jacket £75 and 2x Suit Trousers at £75 each, do you consider all 3 items as 1 item?


Have to say my assumption would have been a mix and match purchase of clothing would be treated as independent items given there is no compulsion for the items to actually match and be a single "suit" but may well be a non-matching "outfit" but at that point you could include shirt, socks, shoes etc in the definition of an outfit. 

born_again

Sadly that is one simply question & answer we are given, to test out understanding so we do not send a customer packing with the wrong advice.
So on S75 I always tend pass then on to the team who deal. If they say no. I have no worries.

How about if its Suit Jacket £75 and 2x Suit Trousers at £75 each, do you consider all 3 items as 1 item?

No, as that would exclude 1 pair of trousers. For not being part of a suit
But if it was jacket, trousers & waistcoat then it would be OK... 3 piece suit. 🤷‍♀️

DullGreyGuy

born_again said:

No, as that would exclude 1 pair of trousers. For not being part of a suit
But if it was jacket, trousers & waistcoat then it would be OK... 3 piece suit. 🤷‍♀️

But it is part of it and if it was from where I buy my suites from it would be on the receipt as a single item of "suit" with notes on the order form to say what fabric it is, style of jacket/trousers, what items are making up the suit which is anything from 1 to X pairs of trousers. 

In a S75 claim clearly I submit my receipt rather than the order form.