[access-uk] Re: Purchasing equipment and protecting yourself
- From: "ANDY COLLINS" <Andy@xxxxxxxxxxxxxxxxxxx>
- To: <access-uk@xxxxxxxxxxxxx>
- Date: Tue, 3 May 2011 22:51:30 +0100
Credit card firms must refund price of faulty goods, after student's legal
battle | Mail OnlineHi Carol - I haven't seen what you are talking about, but
am aware that cheque guarantee cards, that is a bank card used in tandem when
issuing a cheque, are being fazed out, this is because fewer and fewer cheques
are being issued, and eventually will disappear as a means of payment.
Andy
----- Original Message -----
From: Carol Pearson
To: access-uk@xxxxxxxxxxxxx
Sent: Tuesday, May 03, 2011 10:39 PM
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-price-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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