Give your spending some credit and buy on your card
WITH firms going bust left, right and centre and uncertain times ahead, you’d be forgiven for wondering if there’s anything you can do to safeguard your spending.
Well, if you’ve paid for goods or services on a credit card and something goes wrong, you’ve got more rights than you think.
There’ a great bit of legislation called the Consumer
Credit Act that can help you get your cash back.
HERE’S HOW IT WORKS
THERE are loads of ways to pay for things when you go shopping. But paying for goods or services with a credit card means that you can ask the card provider to give you a refund if the goods or services you’ve paid for don’t turn up or are ‘misrepresented’ (in other words, what you’ve been sold isn’t what you were told it would be).
These claims are made under what’s known as ‘section 75’ of the Consumer Credit Act. It’s an incredibly useful piece of legislation that many don’t know about. In theory, you can make a claim if the seller goes bust or if you’ve only partially paid for the goods on a credit card.
It’s not all straightforward though. Claims made under section 75 have to meet certain criteria and are looked at on a case by case basis by the card provider.
HOW DO I KNOW IF I’VE GOT RIGHTS UNDER SECTION 75?
IF YOU pay for goods or services on a credit card that cost between £100 and £30,000, the credit card provider is jointly responsible, along with the supplier of the goods or services, for any breach of contract or misrepresentation.
This can involve goods not turning up, items that are damaged or situations where you’ve been misled by the supplier. You don’t need to complain directly to the supplier either – but we strongly recommend you do.
You’re even covered if you’ve only paid for a deposit for something on your credit card – as long as the deposit cost between £100 and £30,000.
In cases like this you’re still covered for the whole value of the item in question. If you pay a £200 deposit for a sofa that costs £2,000 on your credit card and the rest in cash then the firm goes in to liquidation, the card provider would in theory have to pay you the full £2,000. But it’s likely a card provider would fight any claim on a deposit under £100 – and some specify a limit in their
terms.
ALWAYS BUY DIRECT
AS with most things, there are always catches. What catches most people out with section 75 claims is that you have to buy direct.
Many online retailers these days don’t actually provide the goods or services themselves. For example, if you use an online holiday booking firm to buy a flight and a hotel, you’re not buying direct from the provider of the goods or services, so chances are you’re not covered.
The simple answer? Use these sites to find the deals you like, then buy direct if you can or ask the provider to match or beat the price.
Seems simple? Well, what if you buy from a third-party ticket agency that is the appointed ‘seller’ of the tickets for the venue or artist? In theory, you should be covered. But, in practice, you might not be as it’s still a third party.
The same problem can arise by using your credit card through money transfer services like PayPal.
If in doubt, buy direct!