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

  • From: "Carol Pearson" <carol.pearson29@xxxxxxxxxxxxxx>
  • To: <access-uk@xxxxxxxxxxxxx>
  • Date: Wed, 4 May 2011 14:34:48 +0100

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

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