Successful claim under Section 75 - Merchant says I owe them money

eskbanker

From my CC company:

Dear ****

Your reference: Section 75 / **********

CLAIM UNDER SECTION 75 OF THE CONSUMER CREDIT ACT 1974

Thank you for contacting us in regards to your claim against **** dated ****** for an amount of £****

Are they just echoing your use of the phrase in the message title? Who do they say the claim was against, i.e. the merchant (chargeback) or card company (s75)?

A few months ago I made a chargeback for faulty goods with my CC company. After providing all the information they told me I needed to make a claim instead under section 75 and I filled out the form.

What reason did they give for saying it needed to be dealt with under s75 rather than chargeback?

mta999

This has been processed as a chargeback ie the money has been removed from the merchant's bank

The merchant is entitled to take you to court for their money

Okell

https://forums.moneysavingexpert.com/discussion/comment/82053202#Comment_82053202

@s7beck - you need to get answers to these ^ questions

if your card provider processed a chargeback (and that communication from them suggests that they did) then yes, the seller may have a case to sue you in court.

After your card provider found in your favour, did you not think to ask them what to do with the goods, or to make them avaialble to the seller for collection? You'd been refunded for them so no longer owned them. (Probably…)

Who is your card provider?

screech_78

There is no way that has been processed as a section 75 claim. It’s a chargeback and it has no legal standing. The retailer can pursue you for the funds and take legal action which you would need to defend.

Disposing of the goods without making any contact with retailer/CC company wasn’t a great idea.

QrizB

OP are you able to tell us how much money is at stake here? Also, what were the goods and in what way were they faulty?

Okell

Can @born_again or somebody confirm whether, when a bank successfully processes a chargeback on behalf of a customer, the bank is meant to tell the customer to return the disputed goods to the trader?

Ditto s75.

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/comment/82053238#Comment_82053238

Not necesarily.

At the moment, the retailer only has the OP's word that the goods were faulty and have been disposed of.

user1977

https://forums.moneysavingexpert.com/discussion/comment/82053654#Comment_82053654

What would happen if tested at court on the balance of probabilities?

Time2Go_25

I doubt it would look good to the court.

You buy something, say it's faulty, retailer disagrees, you ask CC company to get the money back and then "dispose" of the goods before anyone can ask for them back or check.

Okell

So far as I'm aware there is no legal requirement on banks and credit card providers to offer dispute resolutions to customers like chargeback and s75 claims.

That is something banks and credit card providers have chosen to do themselves - they weren't forced to do so.

As they have voluntarily chosen to do so, I think there ought to be some "moral" or "ethical" requirement on them to communicate clearly to their customers what they ought to do with any goods that were the subject of a successful chatgeback or s75 claim.

I;d suggest it's a breach of a bank's duty of care to their customers not to do so as they could be laying their customers open to legal action from unhappy traders - at least in the case of "successful" chargeback claims.

(Off topic but I've never understood why banks offer to process what amounts to s75 claims against themselves in the first place. It makes no sense to me - particularly when they have chargeback as an option. If I were a credit card provider I wouldn't refund anything on s75 unless first I'd recieved a LBA and second I was certain we'd lose any court claim)