Section 75 on holiday accommodation

ec000

Hello everyone

Can you kindly help me understand whether, if I pay just £1k (the deposit) of a £10k holiday accommodation bill, the whole £10k can be claimed under Section 75 if the booking is not honoured/the property closes down? I plan to pay the remaining £9k via Faster Payment as the owner will not take the whole thing on credit card due to the charges.

The credit card provider risks refunding far more than I paid via card - is that really how it works? Seems harsh on the card providers!

Thank you!

Olinda99

Yes the whole 10k can be claimed

Grumpy_chap

ec000 said:

Hello everyone

Can you kindly help me understand whether, if I pay just £1k (the deposit) of a £10k holiday accommodation bill, the whole £10k can be claimed under Section 75 if the booking is not honoured/the property closes down? I plan to pay the remaining £9k via Faster Payment as the owner will not take the whole thing on credit card due to the charges.

The credit card provider risks refunding far more than I paid via card - is that really how it works? Seems harsh on the card providers!

Thank you!

Yes, it is harsh on the card provider.
S75 is not an easy process and nor does it necessarily cover every eventuality.

ThumbRemote

However you must ensure that you pay the accommodation provider directly. If you pay a middleman (eg booking.com) who then pay the provider, you have no cover. There must be a direct payment link.

Bradden

I believe the S75 liability is an unintended consequence of credit cards being more widely used than when the legislation was drafted. I'm sure the banks would love to have it changed 😊

PHK

Bradden said:

I believe the S75 liability is an unintended consequence of credit cards being more widely used than when the legislation was drafted. I'm sure the banks would love to have it changed 😊

Yes, it was drafted to solve the problem of physical objects being paid for on credit after  paying a deposit. Loans were mostly  the lender tied to the merchant.  Credit cards operated differently then, a merchant would generally be signed up to one card scheme or another. 

So there was a closer relationship between merchant and lender. 

It was never envisaged that credit would be used  like it is now. 

Okell

@ec000 - what s75 actually says is that if you have "... any claim against the supplier in respect of a misrepresentation or breach of contract, [you] shall have a like claim against the creditor, who, with the supplier, shall accordingly be jointly and severally liable to [you]".

So in order to claim against your card provider under s75 you must first have a claim against your accommodation provider for either misrepresentation or breach of contrcat.

And yes, you don't have to have paid the full amount on the card.