Section 75 credit card claims

MacaW · 18 March 2017 at 11:23AM

Hi

I am trying to get some money back for a terrible holiday and in a last ditch attempt to avoid issuing court proceedings against the holiday company I approached the credit card company under section 75. However the holiday booking invoice is in my name as I booked it and paid the £100 deposit . The £3k holiday balance was paid for by my husband with a credit card which is in my husbands name . The credit card company has made a derisory offer stating that I have contracted with the holiday company and have no "debtor, creditor,supplier" link in respect of the transaction and so section 75 does not apply .

Does anyone know if this correct ?

Many thanks

eddddy · 18 March 2017 at 11:46AM

So you're making a s75 claim from the CC company that you used to pay the £100 deposit, and the contract for the holiday was in your name, and you went on the holiday? Is that right?

Based on the CC companies comments about "debtor, creditor, supplier link" - did you book through a travel agent?

If so that may be the problem. The FOS say:

Where customers use a credit card to buy airline or other travel tickets from a travel agent, they cannot normally claim against the travel agent if the airline delays or cancels the flight. This is because the travel agent contracted to supply the ticket, not the flight. So the customer would not have a claim under section 75 either.

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

The example mentions a flight, but it could be the same for a package holiday.

There's also the question of whether there actually was a breach of contract and/or misrepresentation - which would be required for a s75 claim.

bris · 18 March 2017 at 2:09PM

Have you even proved there has been a breach of contract?

MacaW · 20 March 2017 at 2:37PM

Thanks
I paid the £100 deposit from my bank account but the majority of the holiday cost was paid for by my husband using his credit card .

There was definitely breach of contract ,

The Cc company is arguing the fact the holiday invoice is in my name but the credit card is in my husbands name precludes me from making a section 75 claim .

Just trying to find out if this is correct ?

MacaW · 20 March 2017 at 2:40PM

Thanks
The holiday was booked with the tour operator direct .
I'm quite confident there was breach of contract - Package Travel Regulations apply
The CC company is arguing the fact the holiday invoice is in my name but the credit card is in my husbands name precludes a section 75 claim ?

PeacefulWaters · 20 March 2017 at 3:38PM

Did you pay the £100 deposit on a credit card in your name?

Was your husband named on the holiday booking?

eddddy · 20 March 2017 at 7:07PM

MacaW wrote: »

The Cc company is arguing the fact the holiday invoice is in my name but the credit card is in my husbands name precludes me from making a section 75 claim .

Does anyone know if this correct ?

Unfortunately, this decision by the ombudsman does seem to support your CC company's view: http://www.ombudsman-decisions.org.uk/viewPDF.aspx?FileID=49074

In the above case, the husband purchased a car (i.e. his name was invoice), but the wife's CC was used. The ombudsman says:

The difficulty here is that whilst Mrs D’s account was used to make the payment, the invoice was made out in her husband’s name and he is described as the “purchaser”

And the ombudsman didn't allow the s75 claim.

(Had you paid the £100 deposit from a CC in your name - then you could have claimed on that basis.)

DCFC79 · 20 March 2017 at 8:10PM

Why doesnt your husband claim ?

What is it your claiming for ?

bris · 21 March 2017 at 12:21AM

Makes sense to me, you didn't book the holiday so why should you claim.

As already mentioned your husband paid 3k oh his credit card, I can see why your CC is telling you to do one. Its a bit of a cheek really when all along the claim should be with the husband, what's the reason for this? To many claims maybe.

eddddy · 21 March 2017 at 10:15AM

bris wrote: »

Makes sense to me, you didn't book the holiday so why should you claim.

The OP did book the holiday. But the OP's Husband paid by credit card.

That's why, according to the ombudsman, neither the OP nor her husband can claim under s75 - because neither have a "Debtor-Creditor-Supplier" relationship.

The OP has a contract with the supplier - but did not pay by credit card.
The OP's husband has no contract with the supplier.

PeacefulWaters · 21 March 2017 at 10:15AM

eddddy wrote: »

According to the ombudsman, neither the OP nor her husband can claim under s75 - because neither have a "Debtor-Creditor-Supplier" relationship.

The OP has a contract with the supplier - but did not pay by credit card.

The OP's husband has no contract with the supplier.

It might not be quite so clear cut. Husband paid by credit card. Husband benefited from sub standard holiday.

An MCOL will get faster results than having to refer this to the FOS though. And FOS won't be guaranteed.

Section 75 credit card claims

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