[access-uk] Re: Purchasing equipment and protecting yourself

  • From: "David Russell" <david.russell8@xxxxxxxxxxxx>
  • To: <access-uk@xxxxxxxxxxxxx>
  • Date: Tue, 3 May 2011 22:50:02 +0100

Carol,

 

I could be wrong, but I think your bank was probably referring to cheques,
not credit cards.  Credit and debit cards will soon not be able to be used
as cheque guarantee cards.  In other words, if you write a cheque, even if
you produce a bank card, it need not be honoured by your Bank when it is
presented if there is not sufficient funds in your account to meet the
cheque.

 

I received a similar letter, but it was about cheques, not credit and debit
cards.

 

 

David 

 

 

 

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

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