Section 75 debtor creditor supplier relationship

(1) If the debtor under a debtor-creditor-supplier agreement falling within section 12(b) or (c) has, in relation to a transaction financed by the. "Section 75 (1) If the debtor under a debtor-creditor-supplier agreement falling within section 12(b) or (c) has, in relation to a transaction. Section 75(1) of the Consumer Credit Act makes a creditor under a debtor- creditor-supplier agreement jointly and severally liable with the supplier in respect contract by the latter in relation to a “transaction financed by the agreement”.

No direct link to credit If a direct link between the goods purchased and the credit used is not established, Section 75 will not apply. However, even those who think they have created a link can be caught out. You are, in effect, paying them and not the merchant, so no direct link is created.

If you are making a high-value transaction, you'll need to decide whether the limitations these technologies place on your consumer rights are acceptable. If you're making purchases above this amount, you will not be covered.

Section 75 and third parties: when you aren't protected

If you later discover you can't arrange a loan for the balance and are forced to forfeit your deposit, you cannot claim under Section Additional cardholders There is no such thing as a joint consumer credit card in the UK. Every credit card must be applied for and be held in the name of one individual, regardless of how many additional cards are associated with it.

section 75 debtor creditor supplier relationship

Section 75 only protects purchases made by, or for the main benefit of, the primary account holder. If a married couple both had cards linked to the same account, and the supplementary cardholder purchased faulty goods, they would not be covered under Section 75 unless the goods were mainly intended for the benefit of the main account holder e.

section 75 debtor creditor supplier relationship

A birthday present for them. Credit not debit Section 75 is sometimes confused with the 'chargeback' protection that some debit card holders enjoy. However, the two are very different. Section 75 is a statutory protection for users of credit, whereas chargeback is a voluntary scheme, and regulators have no power to ensure its enforcement.

Consumers, not companies Section 75 is a consumer protection and does not apply to incorporated businesses. Claiming under Section 75 The Consumer Rights Act increased the clarity of UK consumer rights, requiring goods to be of satisfactory quality, fit for purpose and as described, and before you claim under Section 75, you should seek redress under this legislation. Most banks have specific claims forms for this process, which include fields where you can detail: Once your bank has all of the required evidence, they will begin an investigation to assess your claim.

If your claim is valid, your bank will credit the monies owed to your account.

Debtors' and Creditors' Reconciliation

You can also refer your dispute to the FOS if your lender takes more than eight weeks to complete their investigation. You might assume lenders let cases get referred to the FOS automatically, so they only pay what they need to. The reason for the murkiness: Section 75, now more than 40 years old, was created before the arrival of new payment technologies, so the legislation doesn't cover when external payment agents are part of the transaction.

section 75 debtor creditor supplier relationship

Following the retailer-customer chain "When we look at the payment mechanism used in a transaction, we need to carefully consider what each party in the chain was responsible for and the activity they were actually carrying out," Megan Webster, policy and communications manager at the Financial Ombudsman Service FOSsaid in an emailed response to questions.

The firm that provides the credit card is known as the card provider. It belongs to a credit card network, such as Mastercard or Visa.

section 75 debtor creditor supplier relationship

The retailer is known as a merchant. It signs up with a merchant acquirer, which belongs to the same credit card network as the bank. The retailer gets its money from the merchant acquirer. The merchant acquirer gets its money from the card provider.

Section 75 and third parties: when you aren't protected

So, the chain is: Not every third-party payment processor is responsible for the same role, so the Ombudsman must check on a case-by-case basis what role the processor was performing before determining if you, the consumer, can file a Section 75 case, Webster said.

Some other third-party situations that invalidate Section When you use an agent. This issue is becoming more widespread.

A buyer purchases a flight or a holiday through a travel agent or other agent, or a holiday accommodation website lists properties on behalf of individual owners. The creditor-debtor-supplier link is deemed to be broken by the involvement of a third party, and Section 75 no longer applies.

When you are a secondary cardholder. If you are not the primary named cardholder on the credit card account, you could be caught out. For instance, say both cardholders buy the same rail ticket for a service that is subsequently cancelled and are unable to secure a refund from the rail company.

  • What are your Section 75 rights?
  • What is Section 75?

The primary cardholder is entitled to a refund through Section 75, but the secondary cardholder is not. When an item is registered to a name other than that of the cardholder.