Section 75 dispute

monaymadlol

My partner has had to lodge this as a complaint with the bank now, 5 weeks into s75.

Dealer apparently had to chase the held payment as they said it wasn't released back after they rejected chargeback. They said they would refund and collect when they had the funds released.

Now, they are saying not the full amount was released from their card machine provider, therefore they need to generate income and that a member of staff is in hospital so they can't leave the premises. They claim they will arrange refund and collection by end of the month.

The bank have been useless really, throughout. And since the dealer is cooperating, they are insisting I try and continue to resolve.

We don't know whether to wait til end of the month before LBA or escalate to Ombudsman which could take months. So in meantime, a formal complaint has been lodged with the bank.

born_again

Dealer is not telling truth, as any hold ups would be with their merchant bank.

Okell

https://forums.moneysavingexpert.com/discussion/comment/81934174#Comment_81934174

"… Garage willing to refund based on 'inspection'…"

I'm trying to get up to date with this thread but don't understand what you mean.

Are you saying you haven't allowed the garage to look at whatever fault it is you're complaining about?

Okell

https://forums.moneysavingexpert.com/discussion/comment/81957626#Comment_81957626

Sorry but I'm more confused.

If your bank are in the middle of processing a s75 claim for you then the dealer's money problems and staff problems are irrelevant.

If your bank accepts your s75 claim it's them (the bank) who refund you, and that is who you will get the money from.

The dealer's financial situation and whether he did or did not get all the money back from the chargeback he challenged are neither here nor there. You don't get your s75 refund from him,

Or at least that's how I understand s75 works.

Are you sure your bank is processing a s75 claim? (I've had the misfortune to deal with M&S ordinary customer services online and by phone and they are useless. I wouldn't be surprised if the bank are just as bad…)

Assuming they are processing a s75, you need to understnd it's a lengthy procedure as it's a bit like a mini legal process. Banks don't like paying out their own money and they want to make sure you have a good case before they refund you out of their own money. I'm not sure how long you should reasonably wait before complaining.

Assuming it is a s75 and it fails you'll need to decide if you want to take it further. I'm not sure if you'd be better suing the bank in court or going to FOS. Either will take months if not longer.

How much of refund are you looking for? (It will help determine next steps)

monaymadlol

https://forums.moneysavingexpert.com/discussion/comment/81958048#Comment_81958048

No, that was their position before. Now, they have agreed to a partial refund without inspection, for a fair figure that we suggested based on use since purchase.

monaymadlol

https://forums.moneysavingexpert.com/discussion/comment/81958076#Comment_81958076

Well I think you partly answered your own question. Yes, the bank should be refunding and no they don't want to pay out their own money.

The bank want us to try and resolve it with the retailer first. We have tried, for months via chargeback and (yes) now an official s75. If the retailer doesn't play along, that's when they intervene.

We know it can take months since there's no official deadline, but FOS can take 2 months just to be allocated a case worker.

We now want the bank to refund and then claw back from retailer given the situation.

Speaking to complaints, they say we can go to FOS anytime after raising complaint, other info online suggests wait 8 weeks after no resolution with s75

Refund figure agreed was around 90% of purchase price

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/comment/81958148#Comment_81958148

I am a bit confused why the bank should refund under S75.

• You purchased a car which developed faults.
• You had some beneficial use of the car.
• The dealer has agreed to take the car back and refund 90% of the purchase price.
• You accept that is a fair figure given the use you had of the car.

Why not just conclude this as per the dealer's process?

There seems no reason that S75 needs to be applied. I suspect the bank would refuse S75 anyway on the basis that an amenable and fair outcome was available from the dealer.

born_again

We now want the bank to refund and then claw back from retailer given the situation.

Banks do not claw the money back from retailers in a S75 claim. It simply costs them too much to go court route. As they can not simply take it out of retailer account.

As @above, if that is correct, then I can not see you winning at FOS.

As complaint has only just been raised, it will be either 8 weeks from then or if bank issues a deadlock letter before that, before you can even take it to FOS. Fact you started process 5 weeks before means nothing.

So waiting several months when you already have a suitable result, when there is no guarantee that FOS would side with you🤷‍♀️

monaymadlol

https://forums.moneysavingexpert.com/discussion/comment/81958194#Comment_81958194

The car was sold with faults. The car has had issues since purchase, so no real beneficial use.

The answer to your other points, the dealer is clearly stalling, as they have done.

Last paragraph 'section 75 applied'. By applied, do you mean paid out by the bank?

monaymadlol

https://forums.moneysavingexpert.com/discussion/comment/81958237#Comment_81958237

We read online that banks pay out if retailer does not or refuses cooperation, given joint liability, and then the banks seek to get the money bank from the retailer. Are you saying that information from many sources is untrue?