Section 75 refunds - article discussion

derrick · 6 February 2019 at 8:36PM

DCFC79 wrote: »

The card provider are only liable for the deposit, you paid the rest by bank transfer which is a bad idea.

That is not true.

ANY amount paid by finance, CC included, means the whole of the amount is covered under S75.

.

HalfWayThere_2 · 9 February 2019 at 11:24PM

If anyone can offer any guidance it would be very much appreciated.

I purchased a 62 plate car earlier today, as I have no idea about cars I got a mechanic to inspect it before purchase. The mechanic flagged that it had water in the boot and that the carpet in the drivers footwell was damp. I shared the report with the garage who advised they’d fix it and I then paid the £100 deposit on my credit card.
The garage called me yesterday to say it was all fixed and would be ready for me to collect today. This I did paying the balance on my debit card as the garage refused to accept my credit card.
The issue is that the fault isn’t fixed the car is still letting in water and also that it doesn’t have air conditioning but was listed as having air conditioning.
The garage are no help and have said it was a trade car with no warranty. I’m not any sort of car trader, is this something that would be covered by section 75?

Nochex_company_representative · 11 February 2019 at 12:37PM

No, you are not protected by Section 75 with a debit card. Instead, you need to speak to your bank and insist that they chargeback the amount as the goods did not meet your expectation. Good luck!

derrick · 11 February 2019 at 1:32PM

HalfWayThere wrote: »

If anyone can offer any guidance it would be very much appreciated.

I purchased a 62 plate car earlier today, as I have no idea about cars I got a mechanic to inspect it before purchase. The mechanic flagged that it had water in the boot and that the carpet in the drivers footwell was damp. I shared the report with the garage who advised they’d fix it and I then paid the £100 deposit on my credit card.
The garage called me yesterday to say it was all fixed and would be ready for me to collect today. This I did paying the balance on my debit card as the garage refused to accept my credit card.
The issue is that the fault isn’t fixed the car is still letting in water and also that it doesn’t have air conditioning but was listed as having air conditioning.
The garage are no help and have said it was a trade car with no warranty. I’m not any sort of car trader, is this something that would be covered by section 75?

Nochex_company_representative wrote: »

No, you are not protected by Section 75 with a debit card. Instead, you need to speak to your bank and insist that they chargeback the amount as the goods did not meet your expectation. Good luck!

You seem to agree with my post above, 1412, but now seem to back track.

This poster paid a deposit on their Credit Card, so are covered under S75 for the whole amount.

An example from the Financial Ombudsman

102/12
consumer claims under section 75 for a deposit that's below the £100 lower limit - but the total purchase price is above it

Miss N decided to buy a leather sofa for £1,000 from her local furniture store. She paid £99 on her credit card as a deposit, with the balance due on delivery a few weeks later. Unfortunately, the store went out of business before it delivered the sofa.
When Miss N mentioned the situation to a friend, she was told that she had protection under section 75 - and that her credit card provider would be able to get her money back. When she contacted her credit card provider, she was told that it could not help because section 75 only covers transactions between £100 and £30,000. Miss N complained, but the credit card provider stuck to this position. So she decided to refer the matter to us.

complaint upheld
Having looked at the detail of this case, we could see that the credit card provider had got it wrong. We explained that it is the total cash price of a product or service that must fall between £100 and £30,000.
Even though Miss N had only used her credit card to pay a deposit of £99, as the sofa cost £1000, the purchase would be covered by section 75. We therefore told the credit card provider to refund the £99 deposit Miss N had lost and pay £50 compensation to her for the inconvenience caused.

Also:

If you bring a claim under section 75, the most you can get back from the lender is the amount of the credit.

No. Where section 75 applies, it gives the consumer exactly the same claim against the lender as they would have against the supplier of the goods or services, if there were a misrepresentation or a breach of contract by that supplier. This might be more than, or less than, the amount of the credit transaction - depending on what happened.

https://www.financial-ombudsman.org.uk/pay-it-safe/index.html

"Even if you’re just paying a small deposit on your card, as long as the item you’re buying costs more than £100 but less than £30,000, the whole item will be protected. "

.

Julesn · 22 March 2019 at 2:19PM

I bought a motor for a bike. Which hasn’t worked from day one. I asked after 12 days for a refund from the supplier and was refused. I then went to Nationwide Visa and asked for a section 75, but they went down the charge back route. This was unsuccessful,so 7 weeks on they are now doing section 75. But want me to get an independent report, I have asked as I have given the motor back once to the supplier and it still came back not working that I want a refund even if it is repairable, but they have said Depending on the report I may have to go back to the supplier again for a repair. Is this right? I feel that as it hasn’t worked from day one and I have tried to let them repair it I no longer have faith in them and don’t want it repaired.

Dominick_Yates · 10 April 2019 at 1:57PM

Hi all,

We have a one way flight booked from Manchester UK to Thailand which has one stop in Mumbai. We paid over £700 on our credit card for this, and the airline has cancelled the first flight (Manchester-Mumbai) but not the connecting flight from Mumbai to Thailand. They have offered us a refund for the first leg of the journey but does anyone know if they should reimburse all of it if we cannot replace the flight, or if we can claim under the section 75?

Thanks

rigsbyx · 10 April 2019 at 3:50PM

I *think* that the airline would probably only reimburse you for the flights they cancelled, and not everything. Best to check with your credit card company as Section 75 will only pertain to them. Claiming back from the airline and under Section 75 are two separate things; you can’t do both... only use Section 75 if the airline refuse what you want paid back from them (did you have hotel bills that you had to pay for that you otherwise wouldn’t have had to? Food? Car rental etc?). I mention this because when I managed to claim back absolutely everything for my car, my credit card company *offered* to pay for any further ‘out of pocket’ expenses; but as I was not quick enough (and probably too honest!), I didn’t... I later found out that the extended offer would have covered my new car by way of making sure it had all repairs done for an MOT etc; not the car itself, but extra payments that I had to pay because of the hassle I was put in. Play it out and see...

retiree · 14 April 2019 at 5:07PM

MSE advises us to pay for services by credit card so that in the event of problems arising, we may be able to claim against the card issuer under Section 75 of the Consumer Credit Act.

Nationwide Visa point out:
“Considering your eye examination was free of charge, I am unable to accept any liability under section 75 for any breach of contract and/or misrepresentation arising from the prescription. This is because your credit card was not used to finance the eye examination”

In other words, since OAPs get free eye tests, compensation cannot be claimed if the opticians compound their own NHS prescription error by supplying glasses based on that prescription.

Hooli · 27 May 2019 at 12:09AM

Hi All
I purchased a training package of 5 courses in March 2018, using 0% finance over 12 months for £2500. In December 2018 the training provider went into liquidation, I'd only completed 2 of the courses and received certification for only one of those. I contacted the finance company 3 times to ask what i should do and where i stood. I received no reply so advised them I was cancelling my direct debit.
Funnily enough, they contacted me immediately. They told me i had to continue with my payments as it was a separate contract and that if i didn't i would get black marks on my credit history.
So, i paid the one installment i'd missed due to cancellation of the DD, by credit card (£155).
I've paid the full balance now but have written to both them and the training provider and received a 'sorry but you're not covered' from the former and no response at all from the latter.
I wrote to the FSO who have now advised that as the finance was 0%, it's not covered by section 75! However, the Fixed Sum Loan Agreement Regulated by The Consumer Credit Act 1974, does not state anything of the sort.
I'm at my witts end, effectively throwing away £2500 when I thought I was covered.
Any help, advice on this is much appreciated as there is no mention on MSE site about this 0% loophole. I thought others would like to know so they don't get caught out.
Many thanks

nojwan · 29 July 2019 at 1:03PM

Hi all

Just a quick one.

We bought a kitchen c/w appliances from Wren in November 2017.
We used a Barclays loan arrangement offered by Wren (to take advantage of the 4 years interest free offer).
The dishwasher has just broken down with a suspected heating element failure and it is outside its manufactures warranty; do you think I would be able to raise Section 75 for a repair/replacement as only lasted for 18 months?

Thanks

Section 75 refunds - article discussion

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