Section 75 vs Chargeback

[theJBP]

Hi everyone. Please can I ask for some advice.


On the 28th November I ordered a playstation 4 console, costing £299.00 from a company called 247 Electronics. I paid on my Tesco Bank Visa Credit Card. 247 Electronics appears now to have gone bust - no one has received their orders, twitter, Facebook and consumer forums are up in arms with consumers complaining, and the company posted a message on it’s website saying it was unable to meet the orders and promised to refund everyone. Despite repeated attempts to contact the company I have been unable to secure a refund.

And so I contacted Tesco Bank and asked to make a claim under Section 75 of the Consumer Credit Act. They are refusing to let me do so. Instead, they are insisting I make a claim under their chargeback procedures.

My understanding is that Chargeback offers a much lower level of protection to the consumer. I am now really worried that they are insisting that I go down this route in order to give themselves greater scope to reject my claim.

Can I ask whether they are able to do this, or whether I can insist that they consider my claim under Section 75?

Tesco say Chargeback procedures are quicker and thus if successful I will see my money sooner. Should I go along with Chargeback? If I do and they reject me, does that in any way hinder me claiming under Section 75 later?

I'm really worried about this so any help any of you can give me with this will be greatly appreciated.

Thank in advance


theJBP

[mystery1]

Re: Section 75 vs Chargeback

Essentially chargeback is s75. If it wasn't for s75 there wouldn't be chargebacks !

M1

[EXC]

Re: Section 75 vs Chargeback

My understanding is that Chargeback offers a much lower level of protection to the consumer. I am now really worried that they are insisting that I go down this route in order to give themselves greater scope to reject my claim.

Can I ask whether they are able to do this, or whether I can insist that they consider my claim under Section 75?

Tesco say Chargeback procedures are quicker and thus if successful I will see my money sooner. Should I go along with Chargeback? If I do and they reject me, does that in any way hinder me claiming under Section 75 later?

There's an important distinction between sec 75 and chargeback as defined by the UK Cards Association.

Section 75 A provision within the Consumer Credit Act 1974 that makes a cardholder's credit card company jointly liable with the merchant for any purchases made on a credit card between £100 and £30,000.

Chargeback
A transaction that has been returned by an issuer to the acquirer because it has been disputed by the cardholder and/or found by the issuer to be improper. The acquirer will deduct the value of the chargeback from the merchant’s account.

In other words the liability under sec 75 lays is shared between the card company and the supplier but in circumstances where the supplier has gone bust and has no assets all the liability falls to the credit card company. But a Chargeback can only succeed if there is sufficient funds in the merchant's account to reverse the transaction and that's why it offers less protection than sec 75.

In my experience Tesco Bank are the worst credit card provider in honoring sec 75 claims. I'm not sure if you can make a sec 75 claim after a failed Chargeback so in the first instance I would insist on sec 75.

[nemesis45]

Re: Section 75 vs Chargeback

If the supplier is being wound up/insolvent a charge back is most likely to fail if bank accounts have been closed /frozen.
Section 75 is the correct way to go.

Put a claim into Tesco Bank in writing, address it to the CEO Tesco bank, and use signed for post. (this has worked before in similar situations).

[mystery1]

Re: Section 75 vs Chargeback

I'm not sure if you can make a sec 75 claim after a failed Chargeback so in the first instance I would insist on sec 75

Nothing can extinguish the rights under s75. It's a statutory right.

They wish to try a chargeback because if it succeeds then they haven't lost much whereas with s75 the entire cost is a loss to them.

At the end of the day all you want as a consumer is a refund. Arguing with them about how to achieve a refund just prolongs the whole process.

M1