Section 75 for a payment via a third party

Dht6000

Hi all,

I’ve a nasty feeling I’ve been caught out by some cowboy builders and wondering where I stand.

The contract includes a number of staged payments throughout the work, a deposit followed by several smaller payments. total cost is £8750 and the deposit was £2800. Their push was to have the whole thing paid by bank transfer which I wasn’t happy about so pushed for a credit card payment which they agreed to. On the day their machine was not available (feel free to speculate why) and I was asked to make the deposit payment through one of their suppliers who are a national company. Payment was made over the phone.

As you might have guessed things aren’t going to plan and I’m wondering where I stand in relation to making a Section 75 claim. Does the fact it was made through a third party invalidate my rights or do I have a claim against their supplier for the full cost (or just the deposit?). Or is the situation something else? Any advice will be appreciated (but you can assume we’ve learned a lesson about picking trades!).

eskbanker

What sort of supplier did they involve, i.e. a payment processing company or a trade supplier of goods?

Hoenir

Dht6000 said:

Their push was to have the whole thing paid by bank transfer which I wasn’t happy about so pushed for a credit card payment which they agreed to. On the day their machine was not available (feel free to speculate why) 

Doubt that they had a card facility. The charges would be generally uneconomic for a low volume business user. 

Dht6000

Thanks for responding - They’re a trade supplier of goods - tiles in this case. The work that’s being done is a bathroom installation.

eskbanker

Dht6000 said:

Thanks for responding - They’re a trade supplier of goods - tiles in this case. The work that’s being done is a bathroom installation.

I can't see a valid s75 claim being viable here then - the fundamental requirement is for there to be an unbroken chain between debtor, creditor and supplier, so if you didn't pay the (primary) supplier and instead paid a separate company with whom you had no contract, the card company is unlikely to accept that they're on the hook for any breach by the primary supplier, or the other one for that matter.

Dht6000

Thanks - expensive lesson learned then. I was feeling quite pleased I managed to pay by card, should have thought they’d probably be wise to that.

DullGreyGuy

Hoenir said:

Dht6000 said:

Their push was to have the whole thing paid by bank transfer which I wasn’t happy about so pushed for a credit card payment which they agreed to. On the day their machine was not available (feel free to speculate why) 

Doubt that they had a card facility. The charges would be generally uneconomic for a low volume business user. 

What charges? the £30 for a Zettle machine? The 1.5% fee would be a pain but should be absorbable and secure customers who cannot afford to pay cash for their job. 


As to the OP, they didnt pay the supplier of the service and as such no S75 exists. 

Nasqueron

Hoenir said:

Dht6000 said:

Their push was to have the whole thing paid by bank transfer which I wasn’t happy about so pushed for a credit card payment which they agreed to. On the day their machine was not available (feel free to speculate why) 

Doubt that they had a card facility. The charges would be generally uneconomic for a low volume business user. 

Lot of businesses don't realise the costs of cash and assume card is more expensive, could get more business with a cheap card processor and probably realise the cost is actually on a par, maybe lower, than cash