What if I only paid the deposit on the card?
The law is very specific, you get the protection for the whole thing even if you only pay for a part of it on the card, provided what you pay for costs more than £100 (and less than £30,000).
What if I have lost all the paperwork?
Again don´t worry too much, with the experience of our claims teams and with our expertise with regards to the consumer credit act, it’s not always immediately necessary for paperwork. We build your claim around the facts.
There can be problems if the card is accepted by a different business from the one that provided the goods and services. We see this situation most frequently in connection with timeshare and holiday club membership, where it is not unusual for the timeshare or holiday club company to use the credit card facilities of another business. The business accepting the payment may simply be acting as an agent for the supplier, in which case section 75 will not apply. In order for section 75 to apply, the business that accepts the payment and the supplier have to be "associates", as defined in the Consumer Credit Act.
This is the primary problem when it comes to claiming there are so many pitfalls and legal measures it becomes a complex task.
This is the reason why Simple Solutions by Paula is a successful claim company; our skilled legal team is fully qualified to deal with any problems you may have.
Buying on credit is something most of us do these days, even if we have the cash to pay for things we want. The Consumer Credit Act is the main piece of legislation that governs how credit providers must treat consumers.
It contains important provisions, including your rights in relation to your credit files and the extra protection you get when you pay for something with a credit card.
Section 75 covers items costing over £100 and up to £30,000, if at least a proportion has been paid on your credit card.
Extra shopping rights when you pay with a credit card
If you buy something that's faulty, doesn't do what it is supposed to, or is not what you ordered, the seller will be in breach of contract and you could have the right to a refund, repair or replacement.
You have similar rights in relation to any goods supplied by the provider of a service or materials used during the provision of the service. This could include appliances supplied as part of a kitchen installation. The service provider can also be in breach of contract if the service element is not carried out properly, such as kitchen units being poorly fitted.
Jointly and severally liable
However, if you paid on credit card, the card company may be 'jointly and severally liable' under Section 75 of the Consumer Credit Act, which means it is equally responsible, along with the retailer or trader, for any breaches of contract or misrepresentations. This can be particularly useful if the company you bought from has gone bust or you can't contact them for another reason.
A credit provider is only liable for goods or services costing more than £100 but not more than £30,000.
However, a credit provider is liable under Section 75 even if you made only part of the payment, such as a deposit, on your credit card.
Section 75 applies only to credit cards and not to debit cards (such as Visa Delta) or charge cards (where all charges must be settled at the end of the month). However, you may be able to utilise protection available through a Chargeback scheme.
Goods purchased overseas
In a landmark ruling, the House of Lords has confirmed that Section 75 does apply to foreign transactions. In 2004 the High Court said the act didn't apply when people made purchases abroad, but that has since been overturned by the Court of Appeal.
The House of Lords confirmed the protection also applies if you buy goods for delivery to the UK from overseas by telephone, mail order or over the internet.
When the seller arranges finance for you
Section 75 also applies if the trader has arranged credit for you to finance the goods or services you are buying from them. It won't apply though if you arrange the finance yourself, for example through a loan from your bank.
Your right to cancel a loan
You have 14 days in which to change your mind and cancel a credit agreement. You will have to repay the amount borrowed along with any interest that’s accrued up to the point at which you cancel. There are some agreements that can't be cancelled e.g. where the amount of credit exceeds £60,260 and for agreements secured on land.
The 14 day cooling-off period runs from the day the agreement is concluded or if later, from when you receive a copy of the agreement or notification of the credit limit on a credit card.
While the credit agreement can be cancelled the contract for the item or service itself won't be affected so if you used credit to finance the purchase of a car you would need to find some other way to pay for it unless you have some other right to cancel that main contract.
Protection for goods or services between £30,000 and £60,260
If the item or service you are buying costs more than £30,000 Section 75 won't apply. Depending on the circumstances, you may get the protection of Section 75A. The price of the item or service must be more than £30,000 and the amount of credit the seller has arranged for you must not be more than £60,260. The credit provider could be liable for a breach of contract as long as:
• you can't trace the seller
• you have contacted the seller but they have failed to respond
• the seller has become insolvent
• you've taken reasonable steps to pursue the seller but you have not obtained satisfaction.
This does not mean though that you must have taken the seller to court. If though the seller has offered you a replacement or compensation which you have accepted you can't claim under Section 75A.
Consumer Credit Act 1974 ("CCA74")
1. You can make a claim under CCA74 if you purchased a product or service, anywhere in the world, costing less than £30,000 if:
• You can demonstrate either breach of contract or misrepresentation (It is much easier for a group to demonstrate misrepresentation than
for an individual)
• AND you paid by a UK issued credit card
• OR you signed a loan agreement with a UK based lender at the same time as signing the purchase agreement ("linked" loan)
2. If you paid by credit card you are entitled to claim for all the money paid for the purchase (up to the £30,000 limit) irrespective of how it was paid
(credit card, debit card, cash, cheque, BACS etc.)
3. If you took out a linked loan your claim can be for:
• The return of all the money paid to the lender
• Cancelation of the loan agreement.
4. You can make a claim even if you have repaid the loan.
"The Commission continues its work on alternative dispute resolution schemes for consumers aiming at easier, faster and cheaper out-of-court resolution of disputes between a consumer and a trader. On 16 March 2011, Commissioner Dalli attends a summit on "Alternative dispute resolution for consumers in the internal market" hosted by the European Parliament's Committee for Internal Market and Consumers with participants from across the EU."
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