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

Wow this takes me back in time. In 1982  my parents bought me a Commodore VIC 
20         for Christmas.  They paid for it with their Barclaycard (I don't 
think they had been out too long) and the computer died on me after 6 months of 
use and the retailer at the time (Callers) went bust.  A letter written to the 
credit card company ensured a brand new replacement.  I guess the law must have 
been quite fresh in people's minds at the time.
On 3 May 2011, at 22:39, Carol Pearson wrote:

> 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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