Credit card company rejected my claim
20 May 2012
Mr Reid purchased a gift for his daughter using his credit card. Unfortunately the goods he purchased were faulty and when he went to take them back to the supplier he found that they had gone out of business. Mr Reid therefore made a claim to his credit card company under section 75 of the Consumer Credit Act 1974. However, the credit card company rejected the claim on the basis that the goods were not purchased for his benefit.
Mr Reid - 20/05/2012
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You and your rights are looking into this story - 21/05/2012
How we are helping - 26/05/2012
In our opinion this is totally wrong and therefore Mr Reids section 75 claim should have been accepted by the credit card company. Section 75 makes no mention of their being a requirement that the goods or services purchased needing to be for the benefit of the credit card holder for section 75 to apply. The only relevant test is that the contract is between the card holder and supplier and therefore that the card holder has the legal right to sue the card holder. Interestingly, in this case Mr Reids daughter has no legal right to sue the supplier as she did not contract with them. This is the reason why gifts receipts were developed.
Update - 30/05/2012
YouandYourRights have advised Mr Reid to complain to the Financial Ombudsman in the first instance, as this is a free route for him to take. We are drafting the complaint for him free of charge. This point has not gone before the ombudsman before and has not been litigated through the courts so it will set a precedent. This will be good news for consumers as we understand that many section 75 claims gets rejected for this same reason.
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