Section 75 claim rejected for sk:n clinic

fudge7000

Hi, I'm hoping someone can help...

I used the free finance last year to buy laser hair removal from my local sk:n clinic, via Omni finance. 

I received 6 out of 8 treatments, before they went bust. 

Omni finance state that given it was interest free, there's no way to claim any money back.

I paid the deposit on my credit card, but they've also come back and said because the deposit was paid to the finance company, they're not liable either. 

Is there any point going to the financial ombudsman regarding this, or will it be a waste of time? 

Thanks for the help!

eskbanker

If your agreement with Omni Finance is a regulated credit one then they're on the hook for a s75 claim regardless of whether interest was 0% or 100%, so their excuse is invalid.

If the credit card deposit was paid to the finance company rather than the merchant then I can see why the card company would legitimately assert that they're not liable, as the debtor-supplier-creditor chain would be broken by the fourth party involvement.

fudge7000

@eskbanker Omni state it's not a regulated credit agreement as it was for less than 12 months and interest free? Thanks for responding!

DullGreyGuy

fudge7000 said:

@eskbanker Omni state it's not a regulated credit agreement as it was for less than 12 months and interest free? Thanks for responding!

How many payments were there? Excluding the initial deposit 

fudge7000

It was over 6 months, with 5 payments, so way short I think... I feel really stupid, I should've just put the whole lot on my credit card, but I thought "oh I've paid the deposit on it so that's ok"... A valuable lesson

gt94sss2

fudge7000 said:

@eskbanker Omni state it's not a regulated credit agreement as it was for less than 12 months and interest free? Thanks for responding!

Do you have a copy of the Credit Agreement you agreed with Omni Finance?

I am sure it will be a regulated agreement and the regulator will be interested in them claiming its not.

DullGreyGuy

gt94sss2 said:

fudge7000 said:

@eskbanker Omni state it's not a regulated credit agreement as it was for less than 12 months and interest free? Thanks for responding!

Do you have a copy of the Credit Agreement you agreed with Omni Finance?

I am sure it will be a regulated agreement and the regulator will be interested in them claiming its not.

Why do you think it would be?

According to the SRA it isn't if 12 months or under, under 12 payments and there is no interest or charges. They link to changes in the FSMA from 2013. 

I last looked before 2013 and back then it was no more than 4 payments; I did look at the alteration to the FSMA the SRA linked to and couldn't spot in there where it increased to 12 payments but would trust the SRA more than my scan reading. 

born_again

gt94sss2 said:

fudge7000 said:

@eskbanker Omni state it's not a regulated credit agreement as it was for less than 12 months and interest free? Thanks for responding!

Do you have a copy of the Credit Agreement you agreed with Omni Finance?

I am sure it will be a regulated agreement and the regulator will be interested in them claiming its not.

There is a long running thread in Consumer section on this matter & these are non regulated credit agreements. So FOS can not step in.

I guess really needs someone to take this via the courts to get a ruling.

DullGreyGuy

born_again said:
I guess really needs someone to take this via the courts to get a ruling.

Why? The rules are clearly spelt out, even if I've not read them in detail for years. I would hope the Solicitors Regulation Authority have read them properly and their directions would clearly state it's not in scope for regulation. 

Would seem a waste of money to litigate on something with straightforward set of rules that dont apply. 

fudge7000

Thanks for the help everyone! Hopefully someone else reads this and is pre-warned in future! I just assumed given I'd paid a deposit on my credit card that I was covered... Should have realised!