Section 75 dispute

born_again

https://forums.moneysavingexpert.com/discussion/comment/81958356#Comment_81958356

Yes. Simply not cost effective. Only way for bank to get money back is chargeback. In your case that has long gone.

Also not something a bank can do without customer permission. As if retailer does not contest chargeback, they can go legal on the customer to get their money back.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81958356#Comment_81958356

Yes, it's been explained already that banks settle s75 claims from their own funds - they are jointly and severally liable under the legislation, so the bank settling a claim doesn't mean that the retailer is separately under any obligation to reimburse the bank.

Okell

@monaymadlol - There's nothing under s75 of the Consumer Credit Act 1974 to prevent a credit provider pursuing a supplier after a payout, but the general understanding of contributors on this forum is that credit providers do not generally - for whatever reason - do that. @born_again suggests it might be that it's not worth their while and I believe he or she has first hand experience of dealing with s75 claims in a bank so I think they know what they're talking about

It might be that the amount of money involved is so large that the bank will want to recover it from the trader, but I don;t think you've told us how much is involved as you don't want to disclose any details of your case.

I was very surprised by your posts yesterday where you said in one of them "My partner has had to lodge this as a complaint with the bank now, 5 weeks into s75" implying that the bank were not processing the claim as quickly as they should have been, but later you posted "The bank want us to try and resolve it with the retailer first…  If the retailer doesn't play along, that's when they intervene". Your bank's view doesn't seem unreasonable to me so I'm not sure why you are complaining about them if you are still negotiating with the dealer

I think what is confusing us is that consumers usually only resort to a s75 claim against their credit provider after they've exhausted all other avenues against the trader. So yesterday I couldn't understand what you were talking about when you seemed to be complaining about how slowly the bank was dealing with your s75 claim, but at the same time you seemed to be still negotiating with the dealer - which you now seem to have confirmed.

Do you believe the dealer is going to cough up what he's agreed to? If yes, then sort it out with them and leave the s75 claim for the moment. If no, then go back to the bank and tell them to expedite the s75 ASAP. At the moment you seem to be dealing with both the trader on the one hand and with your bank on the other, but making little or no progress with either.

Also, if you've agreed a 90% refund from the dealer and he pays up, but you intend claiming the remaining 10% from your bank under s75, I'm not sure but you might need to make it clear to the trader that you are not accepting his 90% in full and final settlement, otherwise your bank might be able to turn round and say to you that they won't accept your s75 claim for 10% as you've already accepted a final settlement from the trader.

Again you haven't provided any details or dates about your case so remember that if you've had any use of the car outside the 30 day short-term right to reject window, the dealer/your bank can reduce any refund to reflect any use you've had of the vehicle. In which case 90% might be all you get.

Out of interest, what outher sources seemed to suggest that credit providers routinely(?) clawed back s75 refunds from traders? It might be that the prevailing view here is not always correct so it would be interesting to know

monaymadlol

https://forums.moneysavingexpert.com/discussion/comment/81958637#Comment_81958637

So, yes, we're talking to both the bank and the trader, as part of this section 75 claim.

That is what the bank have asked us to do, as already explained. To try and resolve first with the retailer and keep the bank updated of the conservation with screenshot. That's what's happening.

The retailer argued that the refund should not be 100% given it has been used. We agreed and settled mutually on a figure. Bank has no qualms on this and could obviously make no legal or other comment on fair use or whatever deduction.

The issue is the bank have been pretty unhelpful in this.

The other issue is that the retailer had agreed to refund to when their funds were released and are now making excuses and extending the deadline of when that may happen so we no longer trust that they will refund (as the bank has said to seek direct resolution and refund from them in the first instance), so we have escalated to the bank to now intervene.

monaymadlol

https://forums.moneysavingexpert.com/discussion/comment/81958480#Comment_81958480

As mentioned before, the bank want us to resolve initially with the retailer, and if retailer pays up, how are the banks funds involved in settling this?

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81959283#Comment_81959283

The basis of a s75 claim is the customer saying to the bank "you're liable for the breach of contract, please pay up" and the bank has no legal right to insert the retailer into the settlement of that claim, either in terms of asking you to discuss the matter with the retailer or seeking to defer settlement until they come to an agreement with the retailer themselves. However, as soon as either line of argument is tolerated without being challenged, and discussions continue between all three parties, then the waters are muddied, so if the retailer settles the claim that's instead of the matter being resolved via s75…

Renfrewman

In what way have the bank been unhelpful?

born_again

https://forums.moneysavingexpert.com/discussion/comment/81959279#Comment_81959279

The issue is the bank have been pretty unhelpful in this.

What do you expect them to do?

The bank is not a mediator in this. You have gone to the bank asing them to pay out.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81959344#Comment_81959344

https://forums.moneysavingexpert.com/discussion/comment/81959397#Comment_81959397

I'd agree with OP that they've been unhelpful - as above, when receiving a s75 claim they shouldn't start acting like a mediator and should accept and deal with the claim themselves without telling OP to deal with the retailer or suggesting that resolution is dependent on the retailer's involvement or consent.

Alderbank

https://forums.moneysavingexpert.com/discussion/comment/81959658#Comment_81959658

But why?

The Consumer Credit Act doesn't say anything like that. S75 specifically says that in the event of a claim the creditor (that's the bank who issued the credit card) is entitled to have the supplier (the retailer) made a party to the proceedings.