Best credit card for low income (benefits) for Sec75 consumer rights

DarthDaisy

Call me a hypocrite but after many years debt free (albeit still being pursued for decades old statute barred debt) I am now looking for a credit card.

However, this is solely for Section 75 consumer protection.

Some cashback might be nice but not airmiles as it is unlikely I will ever get to use those.

Credit limit could be as low as £500 to £1500.

The application forms are tedious and complicated, so ideally one that is simple to apply for and quick to deliver. I will probably need web portal as my phone is so old that apps are dropping like flies.

I expect it will have obscene credit limit which I do not mind because I have no intention of getting into debt, I plan to buy with the card and pay it off within a few weeks.

Of course in the event of a dispute I want a company that is going to be on my side if I get into a dispute for consumer rights.

Any suggestions would be appreciated, particularly on being good at Consumer Rights.

Companies I want to avoid include Barclays, Capital One, Halifax, Lloyds, Marks & Spencer, MBNA, Virgin Money.

eskbanker

I'm unsure that it's particularly viable to seek a card provider that's "good at Consumer Rights" - the basis of any section 75 claim is that you're holding the card provider liable for the faults of a merchant, and they'll all put up a certain amount of barriers before stumping up, so I suspect that whether this is a quick and painless process will be more dependent on the exact circumstances than the company dealing with it, but for the avoidance of doubt they won't be 'on your side' as such, as s75 fundamentally entails you persuading them to pay up out of their own pockets.

Checking your credit files and then eligibility checkers will probably be sensible places to start, if you don't have much history of using credit cards, but you may find that you're not in a position to rule out sizable chunks of the market and to specify a range of other preconditions!

DarthDaisy

TBH the only reason I asked about ones that make it easy for consumer rights is that I have heard some bad experiences on consumer rights shows that show my bank is not great and the likes of Amex seem to get a bad rep on this.

I hear what you are saying about persuading them to pay up, but actually I see it as more like them forcing the merchant to pay up, they have the power to take funds from them and also if buying from companies abroad then I have heard it adds an additional layer of protection.

eskbanker

I hear what you are saying about persuading them to pay up, but actually I see it as more like them forcing the merchant to pay up, they have the power to take funds from them

You can choose to see it how you like, but the fact remains that banks will settle s75 claims themselves and will only rarely seek to pursue merchants - it's chargeback (a different process, also applicable to debit card purchases) that involves recovery from the merchants.

also if buying from companies abroad then I have heard it adds an additional layer of protection.

What additional layer of protection do you believe applies to purchases from overseas companies?

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/comment/81888630#Comment_81888630

S75 doesnt give you any additional rights in any circumstances. What it does do, in certain circumstances, is give you another firm that you can go after and that firm tends to be a rather well capitalised regulated UK entity.

So buy a "gold Rolex" for $500 from a market trader in a souk in North Africa which you then discover is a fake then rather than trying to trace the market trader and get your money back from them you can go after Barclays, or whoever your card issuer is.

Note that banks pay these claims out their own pocket, they therefore arent "on your side" and will challenge you to prove that it was supposed to be a genuine watch and not a "genuine fake" as are sold in these places.

DarthDaisy

https://forums.moneysavingexpert.com/discussion/comment/81888645#Comment_81888645

I don't know about that because I hear people advised to use S75 every week on consumer shows and they report back that the CC cave when you threaten to use the Financial Ombudsman. I like that potential protection, hopefully I never have to use it but good to know it is there for purchases that may go wrong.

I hear so many customers with problems on these consumer shows with things not made to the same quality as they used to be it is good to have that additional protection.

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/6655801/best-credit-card-for-low-income-benefits-for-sec75-consumer-rights

It is important to remember that S75 only offers any protection if the item purchased is over £100 in value.

If you are contemplating a card with a limit that maybe as low as £500, how many items over £100 in value will be eligible for potential S75 protection?

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81888686#Comment_81888686

I'm not saying that financial institutions aren't ever influenced by threats to go to FOS but any such cases are hardly representative! However, if the customer can clearly demonstrate breach of contract (or misrepresentation) by the merchant then the card company should obviously settle accordingly, but such matters are decided on their merits, and "things not made to the same quality as they used to be" isn't a compelling argument….

I'm not trying to argue that s75 isn't useful though, just that it isn't some sort of silver bullet that guarantees success! When all is said and done, there's nothing to lose by paying with a credit card, except perhaps for those for whom debt management is a potential issue.

lr1277

If you are not aware, S75 applies to each individual item being between £100 and £30k. Say you bought 4 flights costing £80 each totalling £320. Say the airline went bust. You could not claim S75 for this transaction as each individual item is less that £100.

You say you have a low income. Many if not all cards have a minimum income requirement. You could do worse than googling:

[card name] minimum income

Won't always work but usually gives you an idea if the particular card you are considering is worth further consideration.

MEM62

"I hear so many customers with problems on these consumer shows with things not made to the same quality as they used to be it is good to have that additional protection."

Of course you do - it's a consumer programme. The vast majority that have no issues are not going to appear on these shows, are they? So it is hardly reflective to the percentage of buyers that have issues.

Maegi

https://forums.moneysavingexpert.com/discussion/6655801/best-credit-card-for-low-income-benefits-for-sec75-consumer-rights

Barclaycard, Capital One, Lloyds Banking Group, HSBC UK and Nationwide would be a good chunk of the market.

Have you tried someone you already have a banking relationship with?