Credit card section 75 question

purplepatch

Hope someone can help. About to book a holiday through a private owner - cost of holiday £600 odd but they want a deposit of £100 now. They offer the facility to pay by credit card with 3% charge for doing so. I know that I will get extra security due to section 75 so thinking it's probably safest to do that, but my question is this. Section 75 apparently applies to purchases over £100. Say I paid the £100 deposit and then the company went bust. Because I would have paid exactly £100 (ie not strictly speaker over £100), would that still be covered under the rule? Hope that makes sense

YorkshireBoy

As long as the total cost of the product/service is more than £100 (and less than £30,000), you can pay as little as £1 (if the provider will accept such a low payment) as a deposit and still gain full section 75 protection.

However, are you dealing directly with the company or through an intermediary such as PayPal? If the latter, I think I've seen reports of problems because they are not responsible for 'delivering the goods'.

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/31/creditcards-31.htm

purplepatch

YorkshireBoy wrote: »

As long as the total cost of the product/service is more than £100 (and less than £30,000), you can pay as little as £1 (if the provider will accept such a low payment) as a deposit and still gain full section 75 protection.

However, are you dealing directly with the company or through an intermediary such as PayPal? If the latter, I think I've seen reports of problems because they are not responsible for 'delivering the goods'.

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/31/creditcards-31.htm

Many thanks, that is good to know. I will be paying it directly to the company, so no worries there.

purplepatch

[SIZE=-1]

The claim is not limited to the amount of the credit card transaction. Customers can claim for all losses caused by the breach of contract or misrepresentation. And this applies even if all they paid by credit card was the deposit.

[/SIZE]

[SIZE=-1]So, for example, a customer who pays a deposit for goods – using a credit card issued by firm A – and then pays the balance using firm B’s card, has the choice of claiming for the cost of goods and any consequental losses against:[/SIZE]

• [SIZE=-1]the supplier of the goods;[/SIZE]
• [SIZE=-1] firm A;[/SIZE]
• [SIZE=-1] firm B; or [/SIZE]
• [SIZE=-1]all three.[/SIZE]

This is interesting, taken from Yorkshire Boy's link. Does the balance have to be paid by credit card? The first paragraph makes it sound as if you are ok provided at least part was paid by credit card. Not sure what to make of it.

I suppose for the sake of a £15 charge it is safer to pay the whole lot on credit card.