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