The Daily Telegraph - Saturday - Money
‘Section 75 isn’t all it’s cracked up to be’
Consumers who book a hotel for their summer holiday or buy an item from an online retailer could be forfeiting legal rights without their knowledge. Users of major travel booking websites such as Booking.com and Hotels.com, as well as third-party payment websites such as PayPal, could be left without a key element of consumer protection in the event of problems with the purchase. Section 75 of the Consumer Credit Act offers legal protection against poor-quality goods, mis-sold services and other failures. If something goes wrong with a purchase worth £100 or more, the credit card company is jointly liable alongside the firm that provided the goods, meaning consumers can claim a full refund from their card provider for the seller’s failings.
However, consumers could be unwittingly sacrificing this right by choosing the convenience offered by booking websites. This is because Section 75 applies only when goods or services are bought directly from the provider, not through third parties.
Martin and Jilli Bates, of Claverdon in Warwickshire, ended up out of pocket when they booked a hotel in northern Italy via Hotels.com. On arrival Mr Bates was unhappy with the cleanliness of the accommodation, which had visible mould and damp in the bedroom.
The couple had also been promised a view of Lake Iseo from their room, but it was obscured by other buildings.
“The accommodation we booked through Hotels.com was listed as four stars but was a very poor-quality hotel,” Mr Bates said. “We wanted a lake view but there was a derelict warehouse outside our window. We stayed one evening and then booked something elsewhere. It was the misdescription of the hotel that was our problem. We complained to Hotels. com, which said it was not responsible. The hotel itself wasn’t interested in talking to me.”
When Mr Bates checked into the replacement hotel he believed that he could reclaim the cost of the original booking from his credit card provider, American Express.
On his return to England he contacted the card company but his attempt to use Section 75 was rejected outright. Amex told Mr Bates it was not able to consider his claim because he had used a third-party website.
“I wrote to American Express but it said Section 75 didn’t apply because it had no relationship with the merchant – the hotel,” he said.
“I was disappointed because you use your credit card in these situations to protect yourself. Last year, when Monarch Airlines went bust, I had six flights booked with the airline and Amex was brilliant and paid the money back the following day.
“But people can’t rely on Section 75 unless they book with the hotel directly. Section 75 isn’t all it’s cracked up to be.”
Mr Bates said he was disappointed that the Hotels.com website did not make it clear that users would be Telegraph Money
Holidaymakers who use third party booking sites could lose their credit card cover if something goes wrong, finds Adam Williams ‘We wanted a lake view but there was a derelict warehouse outside our window’