Time for Virgin to Complete a Section 75 Claim

WindowMistake

Hello all

This issue has been dragging on since early March and I feel that Virgin Money are purposefully dragging their heels on a Section 75 Claim.
What are other people's experience with them?
I submitted all the documentation, around 100 pages against a company that were to produce some windows for me. The was around £23,000 of which I paid over £700 on a Virgin credit card.
Since I submitted all the evidence, I was asked by Virgin to get an independent survey of the windows that were produced. The surveyor said in 30 years of working in the window manufacturing industry, these are the worst he has ever seen.

I had to pay for the survey, I informed the bank that I had recently lost my job and been diagnosed with cancer. So rather than waiting for the section 75 to be completed I ordered some new windows from a new supplier, who surveyed, manufactured and fitted the windows in 6 months.

I used all my savings, as the previous supplier messed me around for 2.5 years and we had a cold leaking house for that period. They didn't turn up 25 times to deliver the windows as they said they would.

I have spent all of my savings - £50,000 and some of my pension to get to this stage.

The supplier did not respond to any letters from the bank, even when they gave them two 2 week extensions.
Now the deadline has passed by 8 weeks and when I call the bank weekly to chase up progress, they tell me that the claim is still being investigated.

I have no money, am out of pocket paying for the survey they wanted, I am being messed around by and wondering if there is anything I can do. Has anyone else had this experience?

soolin

I can't help with Virgin but I just wanted to say what an awful situation you have found yourself in.

As for time lines, I had an issue around 2020 with Metro bank. From starting a claim with Metro credit card for non supply, via The ombudsman where I eventually ended up after Metro stated no claim was ever made by me despite me having a full box file of a paper trial of correspondence and backing information, to actually getting a resolution and then a refund took around 20 months. I hope yours gets resolved quicker than that!

Gandalf644

https://forums.moneysavingexpert.com/discussion/6682792/time-for-virgin-to-complete-a-section-75-claim

Formal written complaint to Virgin Money. Include the fact you are ill and ask for their Final Response.

If you don’t get the answer you want, or if they do not respond in a reasonable time, then the Financial Ombudsman Service is your next stop:

Financial Ombudsman Service

born_again

S75 claims have no time limits. They take as long as they take. Have known some take well over a year.

TBH even a complaint will not speed up process, may even slow it down, as it then involves a separate team. Fos complaints are taking months as well.

soolin

https://forums.moneysavingexpert.com/discussion/comment/82131925#Comment_82131925

When mine was passed to the FOS it took almost another year and I just got apologies that due to staff shortages they could not hurry the time frame. Even when they actually dealt with it they just kept extending the time they gave Metro to respond. It became a bit farcical - we've given Metro to XX date to respond after which we will decide on the matter. When XX came and I queried it I just got 'Metro haven't responded so we have reminded them and given them until XX to respond, and so forth for months.

eskbanker

This thread appears to be a continuation of a previous one, in which the complexities of the case (such as the multiple suppliers) were discussed, which will probably contribute to resolution timescales:

https://forums.moneysavingexpert.com/discussion/6651353/section-75-charge-back-on-some-windows

Having said that, this doesn't excuse Virgin Money if they're demonstrably dragging their heels - in particular s75 holds them jointly and severally liable with the supplier, so they shouldn't be insisting that progress is conditional on input from the supplier, although they are technically entitled to add them as a party to any legal action under s75(5).

WindowMistake

Thank you all for your inputs and Soolin, I am sorry to hear that you had a year's worth of nonsense from Metro bank.
The bank have told me that they have no time frame on having to answer a Section 75 claim. However I have read that they must respond within 8 weeks.
I wonder if that is 8 weeks from when the deadline for the supplier to respond is, or when I raised the claim, or after they received the report they requested.
It seems to me, that having received the report, they started down the route of a quasi court and have stopped dealing with the claim.
When speaking to the S75 Dept, they tell me it has been elevated to the next level, but there are no notes on file to say it has even been looked at.
So as you mention eskbanker if they are joint and severally liable with the supplier, does it mean that I can threaten the bank with small claims court action and give them a deadline to resolve the case?
I am not worried about taking a bank to court, however I would like to know where I can find the terms of S75 as the bank have never provided me with any. This would be the starting point of my claim.

eskbanker

The bank have told me that they have no time frame on having to answer a Section 75 claim. However I have read that they must respond within 8 weeks.

They're right and there is no mandated timescale for s75 claims - the eight weeks you refer to is the FCA-imposed deadline for resolving complaints, and has no bearing on dealing with s75 claims.

It seems to me, that having received the report, they started down the route of a quasi court and have stopped dealing with the claim.

Not quite sure what you mean by "the route of a quasi court" but if you're holding them legally liable for reimbursing you as a result of a breach of contract by a different party then it's prudent to expect some reluctance or resistance, especially for a substantial sum like this that they'll generally be paying out of their own pockets.

So as you mention eskbanker if they are joint and severally liable with the supplier, does it mean that I can threaten the bank with small claims court action and give them a deadline to resolve the case?

You don't actually have the right to unilaterally impose a deadline but could go down the court route if you chose. However, it'll normally be more sensible to go through th bank's complaints process and, if still unsatisfied, escalate to the Financial Ombudsman Service, who will often be more consumer-friendly than a court and is free. It's important to understand that neither of these will be particularly quick though…

I would like to know where I can find the terms of S75 as the bank have never provided me with any. This would be the starting point of my claim

It simply refers to a section within the Consumer Credit Act 1974, and in fairly brief terms expresses the shared liability issue, rather than defining any sort of process:

https://www.legislation.gov.uk/ukpga/1974/39/section/75

simongregson

I have had the same issue, submitted months ago. Do complain, I am up to £160 in compensation so far after they promised contact from the disputes team and requested information I had already given them, twice, and laughably tried to impose a 10 day deadline for sending the information when they had taken months on end. Fortunately my claim is only for slightly over £300 so at the rate they are going I will soon have my money back anyway!

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/comment/82132157#Comment_82132157

As has already been said, the law sets no time limit for dealing with a S75, the time limit that does exist is simply the law of limitations and that limit is on you for bringing the matter to court.

The FCA has general requirements of things like timeliness as does Customer Duty but it's not as prescriptive as saying they have X weeks. The 8 weeks you mention is more likely the timescales for complaints about the bank, which a S75 claim isnt itself a complaint, but even there you are a little out… the 8 weeks isnt when they must have provided a final response by but instead is when you get the right to go to the FOS even if the bank hasn't yet given you a final response.

If there is a note on the file then someone has looked at it, by definition as how else did the note get there? Now it may not be the right person or it may be someone looked at it simply to diary it on but almost someone has looked at it at least briefly


You certainly can send a letter before action and take the bank to court, most would argue that the Financial Ombudsman is the safer bet as its of no cost to you and you can still go to court after if you are unhappy with the FOS outcome.

Nasqueron

https://forums.moneysavingexpert.com/discussion/comment/82132157#Comment_82132157

S75 was never designed to cover credit cards at all, it was a quirk of the system that it was decided they were included. There are no separate bank terms for S75 unless they particularly wanted to write them as they don't supersede the law, it's simply a part of a law that holds them jointly and severely liable. There is no deadline in law, they are allowed to investigate (and make you pay for investigations) and come to a decision based on the evidence given. Complaining and ringing them regularly won't speed it up.