Section 75 ?

Dodger

Hi all Forumites - I am a member of a club with approx 120 members. If we get a club credit card for larger purchases...within the Section 75 limits, are we still covered under the act? I know how it works for an individual but unsure if it covers larger purchases for a club.....?

eskbanker

Even though section 75 is part of the Consumer Credit Act, which many assume means that its provisions only relate to individual consumers, there's an old FOS newsletter which clarified that credit "must have been provided to an ‘individual’ (which includes sole traders, small partnerships and unincorporated businesses, as well as ordinary consumers)".

However, have you actually found a card provider who'd be willing to offer a credit card to a club constituted in the way yours is?  S75 requires an unbroken chain between debtor and creditor (and supplier), so who'd actually be the debtor in your scenario?

unforeseen

If you are looking at a corporate credit card then they aren't covered by S75

DullGreyGuy

Dodger said:

Hi all Forumites - I am a member of a club with approx 120 members. If we get a club credit card for larger purchases...within the Section 75 limits, are we still covered under the act? I know how it works for an individual but unsure if it covers larger purchases for a club.....?

Look at the T&Cs of the card you are have and see if it states its regulated by the Consumer Credit Act.

For example a personal lines card from Lloyds states it is whereas their business card here doesnt state its covered by the CCA. They actually have two sets of terms for the business card, one covered by the CCA and one not because as mentioned sole traders can get CCA protection.