I won section 75 claim... now company is suing me

[Amethyst]

Ok, I just need some thoughts pls, has anyone come across that kind of situation before, and if so what's best to do with regards defence of the claim - strike ? join cc provider ?

The customer makes a section 75 claim from their credit card provider due to the service not being provided, and are refunded the payment they had made.

The company end up sending the customer a county court claim for that same money.

It is unlikely the company paid the credit card provider (but we don't know).


I'm sure its a situation thats come up a number of times, I just haven't seen one and the company side guides to sec 75 aren't much help.

[enaid]

Re: I won section 75 claim... now company is suing me



http://www.policespecials.com/forum/index.php/topic/125710-for-all-you-legal-boffs-section-75-cca-claim/





Credit Cards and Third Party Payment Providers

If payment is made for goods or services and is made by credit card using
a third party payment provider then who is responsible if the supplying
company goes bust or fails to fulfil the contract? The credit card company
or the third party? This is assuming that the other requirements of
section 75 are satisfied.


It depends on what you mean by "third party payment provider". There are,
broadly speaking, two types: Those acting as electronic money providers (of
which the most prominent are PayPal and Google Checkout), and those acting
as card gateways (such as Worldpay and Sagepay).
If the third party is a card gateway then the credit card company is
responsible. The gateway doesn't handle money on its own behalf, it merely
acts as the agent of the recipient (the seller in the transaction) and
therefore the card payment is deemed to have gone directly to the
recipient. That makes the card company jointly liable under section 75.
If the third party is an e-money provider then no-one other than the vendor
is responsible. Section 75 doesn't apply to the e-money provider at all,
under any circumstances, since they are not providing you with credit, and
it does not apply in this scenario to the card company as the organisation
that you paid via the card, the e-money provider, has not failed to meet
their obligations.
(Some would argue that if an e-money provider is providing a service which,
to the user, is indistinguishable from a payment gateway then the card
company should be liable in the same way that they would be had a gateway
been used. However, the relevant distinction in law is how the third party
is regulated, not how it appears to work to the user)

[Amethyst]

Re: I won section 75 claim... now company is suing me

http://www.policespecials.com/forum/...-75-cca-claim/

brill, thanks Nelly

This isn't related to me personally. A customer pays for a product or service to a retailer via their credit card. The transaction falls within the type covered by the Consumer Credit Act 1974 (CCA). The customer is not happy with the product/service and therefore successfully brings a s75 claim against their credit card (CC) issuer for alleged breach of contract. The CC issuer reimburses the customer for the product and hence remedies the breach.

The retailer disputes this and puts the customer on notice that they intend to take legal action against them for non-payment as the credit card has charged the amount they had to refund the customer, to the retailer.

Now the question is, has the customer breached the contract? Technically they did make the initial payment and therefore fulfilled their obligations under the contract, the credit card issuer are the ones who subsequently recover money from the retailers bank. So has the retailer any scope to bring a claim against the customer, or should they be directing any legal action against their bank?

no proper answer but general consensus seems to be....

The point is that both the consumer and the credit card issuer could be cited as joint defendants on a particulars of claim.

any case law ?

[enaid]

Re: I won section 75 claim... now company is suing me

I think the other info I posted was something Tools was asking about

[Amethyst]

Re: I won section 75 claim... now company is suing me

Yes, Amber's thread in BPS VIP xx

[Guest]

Re: I won section 75 claim... now company is suing me

My understanding is that if the credit card company makes a pay out they will pursue the dealer, this is in the act I think, I cannot print it up at the moment.
If the dealer thinks that the reclaim should not have been made he will pursue the cc holder. The joint liability does not work the other way around.

[pantabo]

@AMETHYST:Out of curiosity, since I'm dealing with a similar case, how did this end and did you reach a broad conclusion regarding your initial question? I would have thought that the company would have to sue the credit card company and wouldn't have a claim against the consumer, as section 75 would otherwise be rendered ineffective...

[MIKE770]

very old thread start your own

[pantabo]

I did and was told not to duplicate: "Duplicate threads are not helpful because people can waste time repeating things already discussed on the other thread."

[atticus]

Surely the short answer is that you may defend the supplier's claim on the same grounds as those on which you made your s75 claim against the credit card lender.

[pantabo]

That certainly makes sense, but the question is whether that is the intention of section 75, as section 75 often serves as de-facto mediation forum between two parties - supplier and consumer - that may have very different financial means and where the courts could be a very expensive route for a consumer to defend her rights.