Section 75 on Credit Card Purchase

ecnirp98

Hi

I am about to buy a car for £13,000 from a Car Dealer, I have paid £150 on my credit card as a deposit, so I am about to pay the balance by Bank Transfer payment to the dealer.

I just checked with my Credit Card company that as the purchase value is between £100 - £30,000 I am covered for Section 75 with the £150 deposit, but they just told me the legislation recently changed, so that you are only covered for the amount paid by Credit Card, so in my case that would be £150, not the full cost of the car at £13,000, is that correct? as it takes away allot of the cover I thought I was getting if anything  go's wrong with the car (I have bought a warranty also).

Thanks for any advice.

MorningcoffeeIV

ecnirp98 said:

I just checked with my Credit Card company that as the purchase value is between £100 - £30,000 I am covered for Section 75 with the £150 deposit, but they just told me the legislation recently changed, so that you are only covered for the amount paid by Credit Card, so in my case that would be £150, not the full cost of the car at £13,000, is that correct? 

No. That's made up.

ecnirp98

MorningcoffeeIV said:

ecnirp98 said:

I just checked with my Credit Card company that as the purchase value is between £100 - £30,000 I am covered for Section 75 with the £150 deposit, but they just told me the legislation recently changed, so that you are only covered for the amount paid by Credit Card, so in my case that would be £150, not the full cost of the car at £13,000, is that correct? 

No. That's made up.

Thanks for confirming that is incorrect, I would have expected to have heard allot more about it if they made such a big change to Section 75, no idea why the Tesco CC employee did not know this.

CliveOfIndia

ecnirp98 said:

MorningcoffeeIV said:

ecnirp98 said:

I just checked with my Credit Card company that as the purchase value is between £100 - £30,000 I am covered for Section 75 with the £150 deposit, but they just told me the legislation recently changed, so that you are only covered for the amount paid by Credit Card, so in my case that would be £150, not the full cost of the car at £13,000, is that correct? 

No. That's made up.

Thanks for confirming that is incorrect, I would have expected to have heard allot more about it if they made such a big change to Section 75, no idea why the Tesco CC employee did not know this.

I'm wondering whether the CC rep was getting confused between S75 and Chargeback?  With Chargeback you only get back the amount you paid by card.

Much as we'd expect/like them to be, a lot of customer service agents are not experts in every aspect of their products, and they can sometimes inadvertently give out incorrect information.

eskbanker

They're probably getting mixed up with chargeback, a different scheme that does indeed only protect the amount paid on the card - card companies will usually try to use this in preference to s75, as it entails the cost being recovered from the merchant, but s75 itself hasn't changed since 1974!

DullGreyGuy

ecnirp98 said:

Hi

I am about to buy a car for £13,000 from a Car Dealer, I have paid £150 on my credit card as a deposit, so I am about to pay the balance by Bank Transfer payment to the dealer.

I just checked with my Credit Card company that as the purchase value is between £100 - £30,000 I am covered for Section 75 with the £150 deposit, but they just told me the legislation recently changed, so that you are only covered for the amount paid by Credit Card, so in my case that would be £150, not the full cost of the car at £13,000, is that correct? as it takes away allot of the cover I thought I was getting if anything  go's wrong with the car (I have bought a warranty also).

Thanks for any advice.

Legislation hasn't changed, though it should.

Could be they are mistaken and thinking of a chargeback which is limited to the amount actually paid on the card.

ecnirp98

Thanks for confirming, so if anything was seriously wrong with the car, I could use Section 75 to make a claim as I have paid £150 of the £13,000 on my Credit Card.

eskbanker

ecnirp98 said:

Thanks for confirming, so if anything was seriously wrong with the car, I could use Section 75 to make a claim as I have paid £150 of the £13,000 on my Credit Card.

Yes, you'd have the same rights with the card company as the merchant, in the event of breach of contract or misrepresentation.

Grumpy_chap

ecnirp98 said:

Thanks for confirming, so if anything was seriously wrong with the car, I could use Section 75 to make a claim as I have paid £150 of the £13,000 on my Credit Card.

Yes, but if you suspect something seriously wrong with the car, or a dodgy Dealer that will not honour your consumer rights, would it not be easier to buy a different car from a different vendor than carry on with the dodgy car from the dodgy vendor and then resolve via CC?