Carol, That sounds very odd. S75 of the Consumer Credit Act has been around for years, and, as a solicitor, I've always known about it. Can't imagine that a high street bank would openly announce that it intended to flout that provision. Anyway, Section 75 has always been a very useful protection, as the article said, and particularly for situations where you may have bought a holiday or anything costing between £100 and £30,000, if my memory is correct. Richard Richard Godfrey-McKay Telephone: 01738-445 880 Mobile: 07791 452 593 _____ From: access-uk@xxxxxxxxxxxxx [mailto:access-uk@xxxxxxxxxxxxx] On Behalf Of Carol Pearson Sent: 03 May 2011 22:39 To: access-uk@xxxxxxxxxxxxx Subject: [access-uk] Re: Purchasing equipment and protecting yourself Hi Gordon, I didn't see a date attached to that article but we recently had correspondence from our Bank informing us that they would no longer be guaranteeing refunds of over £50 when using credit cards. Our bank (Barclays) suggested that this was a decision across the board, so maybe others had a similar letter. I don't recall all the details now, because I wasn't over-bothered at the time, but I wonder if this is why they have acted, perhaps following that article if it isn't particularly new ... Can anyone comment on that, please? -- Carol P ---- Original Message ---- From: Gordon Keen To: dfhp@xxxxxxxxxxxxxxxx Sent: Tuesday, May 03, 2011 10:57 AM Subject: [access-uk] Purchasing equipment and protecting yourself > Hi > > > Here is a useful piece of information you should keep in > mind the next time you upgrade your access tech or indeed > buy any goods over one hundred pounds: > > > http://www.dailymail.co.uk/news/article-1382928/Credit-card-firms-refund-pri ce-faulty-goods-students-legal-battle.html?ITO=1490 > > > Why credit card firms must refund price of faulty goods > By Sean Poulter > Last updated at 10:37 AM on 3rd May 2011 > > > Student wins battle with bank over broken laptop > A student has struck a blow for shoppers by establishing > that a refund on faulty goods can be obtained from a bank > if the purchase was made by credit card. > > The ruling by the Financial Ombudsman Service highlights > a law that has been in place for more than 30 years, > which relatively few people have exploited. > Historically, the Sale of Goods Act has given consumers > the right to pursue a retailer for a refund, repair or > replacement if a product turns out to be faulty. > > Little known rule: Consumer Credit Act says that where a > purchase has been made with a credit card the card > provider is also liable along with the retailer > In theory this right runs for up to six years based on > the type of product, the price paid and a reasonable > assessment of how long it should last. > However, high street stores are renowned for ignoring > this law by restricting any guarantee to one year or > telling them to speak to the manufacturer. > In these circumstances, shoppers have little choice but > to pursue a claim in the county court. > However, the FOS says the protection provided by a > separate law, Section 75 of the Consumer Credit Act, > could provide a more simple solution. > > It states that where a purchase has been made with a > credit card, the card provider, generally a bank, is also > liable along with the retailer. > FOS has published a ruling where it upheld a complaint by > a young college student - identified as Miss T - who > bought a laptop for her studies using a credit card. > The laptop developed a serious fault after just six > weeks, however the store refused to do anything about it. > After completing her exams, the student contacted her > credit card company, explained the problem and asked for > a refund. > However, the card provider turned her away saying it was > 'not responsible for the quality of goods bought with a > credit card'. > Subsequent inspections revealed a faulty motherboard that > would have cost more to replace than the value of the > laptop. > > College student who developed problems with her laptop > after just six weeks was able to make a claim against the > credit card company, Financial Ombudsman Service ruled > The student complained to the FOS which has ruled in her > favour with a decision that will give hope to other > shoppers who face the same shoddy treatment from stores. > It said: 'On the basis of the evidence supplied by Miss > T, we said that the laptop was not fit for purpose, as it > should not have developed a fault of this nature so soon > after Miss T had bought it.' > The watchdog said the retailer was at fault, but, > significantly, ruled that the credit card company was > also responsible. > FOS said: 'We pointed out to the card provider that it > was jointly liable with the supplier for any breach of > contract. > 'The supplier had been in breach of contract by selling a > laptop that was not fit for purpose, so we told the card > provider to reimburse Miss T for the cost of the faulty > laptop and of the two independent reports she had > obtained.' > It ordered the unnamed bank involved to pay a full refund > plus £100 for failing to handle the claim correctly. > The extra protection available from a credit card only > kicks in for purchases of £100 and over. Historically, it > has been useful when booking holidays with travel firms > that go bust, but it has rarely been used in the context > of faulty goods. > Peter Shears, the Professor of Consumer Law and Policy at > the University of Plymouth, said shoppers should take > advantage of their rights under the Consumer Credit Act. > 'If you are buying something for over £100 and you have a > credit card in one hand and cash in the other, use the > card to make the purchase and then pay off the debt with > the money. > 'The fact is that you do have extra protection when using > a card. > 'The FOS ruling spells out a law that has actually been > in place for more than 30 years, however, unfortunately, > few people have been aware of it. > 'I would certainly hope this will encourage more people > to turn to their credit card company in these > circumstances.' > The UK Cards Association admitted that, in the past, the > finance industry has not publicised the protection > offered by credit cards.However, it said this is > changing. > A spokesman said: 'Section 75 provides fantastic consumer > protection. The law ensures that if goods aren't > delivered or are faulty, for whatever reason, then you > can also make a claim on your credit card company, where > the supplier is in breach of contract. > 'The goods or services must exceed £100 and be less than > £30,000. > 'The UK is virtually unique in offering this type of > protection on credit cards because of the way the 1974 > Consumer Credit Act is phrased. > 'Obviously most people will go back to the retailer as > they want a replacement but they can justifiably go to > their credit card company and ensure they get redress > through that channel.' > She added: 'Card companies can't shirk from their > responsibilities under the law. > 'After perhaps being reticent about trumpeting this as a > benefit, card companies accept they have a legal > liability and that this is one of those instances where > using a credit card works out in your favour as a > customer.' > > Share this article: > > Remember though use the credit card not your debit card - > that's treated as a cash purchase. > > > Regards > > > G > > > From Bridgerule in glorious Devon, England. > Catch the buzz at http://www.bridgerule.co.uk