Section 75 - quick question

zmzn

Hello,

Just a quick question. My parents don't own a credit card and are away to book a holiday - if I put the payment through my own credit card, even though I am not going on the holiday, will the Section 75 protection still apply?

Thanks!

NickX

I believe you would benefit - after all you have made the purchase on your Credit Card and should receive all the associated benefits.

However, if there is a problem, it will be your responsibility to negotiate a claim with the Credit Card company on your parents behalf, because they will only deal with the card holder. Just something to be aware of.

Dave_the_Ginger_Cat

Agree with previous poster.

In the past it was not always necessary to pay for the entire purchase on the card to qualify for the s75 protection. I haven't seen a recent test case on this, and would be interested in others' views.

You might find also that the travel agents charge a percentage increase - it's dearer for them to process and they tend to recoup this somehow. I've seen charges around the 1.5-2% mark for this. For an expensive holiday, a decent travel insurance policy may underwrite this risk for you at a cheaper rate and insure you against BA losing their luggage at T5.

HTH

Milarky

Dave_the_Ginger_Cat wrote: »

Agree with previous poster.

In the past it was not always necessary to pay for the entire purchase on the card to qualify for the s75 protection. I haven't seen a recent test case on this, and would be interested in others' views.

See reply #5 (and also read what Section 75 Consumer Credit Act 1974 actually says in the final reply on the same thread) for a discussion covering partial payments and protection.

zmzn

Thanks for such quick replies, really helpful. Dave, it's just a one-off charge of £4.95 rather than a percentage of the amount so not ideal but not too expensive.

(Actually on that topic, why do travel companies/airlines add that additional charge, yet the local supermarket will take a CC for items less than £5. Is it really that more expensive for companies to process them compared to debit cards?)

Dave_the_Ginger_Cat

zmzn wrote: »

(Actually on that topic, why do travel companies/airlines add that additional charge, yet the local supermarket will take a CC for items less than £5. Is it really that more expensive for companies to process them compared to debit cards?)

It's a commercial choice for them.

Say the fees that the supermarket paid (merchant fees) were 30p for a Debit card transaction and 1 - 1.5% for a Credit card. For a spend of £60 there is not too much difference. 30p versus between 60 - 90p

But then apply this to a holiday cost of £600. This becomes the same 30p against a cost of £6.00 - £9.00

I have found car dealerships are the same - they could cope with a £2k deposit on a credit card (with the trusty s75 of course) but did not want to put the balance on without a surcharge

Anyway - more to the point - I hope they enjoy their holiday and the only protection they need is factor 30