Credit card firms must refund price of faulty goods, after student's legal battle | Mail OnlineAh David, is that so? I was thinking it was the use of credit cards. Sorry, didn't mean to mislead anyone. -- Carol P ---- Original Message ---- From: David Russell To: access-uk@xxxxxxxxxxxxx Sent: Tuesday, May 03, 2011 10:50 PM Subject: [access-uk] Re: Purchasing equipment and protecting yourself > 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-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