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Consumer Law Blog

Claim Against the Credit Card

by Bradley Askew 27 December 2009

'Tis the season to be jolly, but purchasing expensive consumer goods with a credit card is not folly. 

There may be statutes and court cases that demonstrate that you have rights as a consumer, but that is not very much use when you complain about faulty/defective products (or services) to the company that sold them to you and they tell you it's not their problem. But buying with a credit card gives you extra protection legally and tactically.

If you spend more than £100 but less than £30,000, even if it's just the deposit, whether on a sports car, boat, television, camera, or hammock, the credit card company (ie. Visa, Barclaycard etc.), are equally liable under section 75 of the Consumer Credit Act.  This means that you can complain to your card issuer rather than that intimidating chap at the car supermarket, or your local gadget retailer.  In fact you don't even need to complain to the company that sold it to you at all. 

Why write to the credit card company?

They are more powerful than you realise and any retailer who uses a credit facility must play by the credit card company's rules which includes sorting out such complaints quickly, and also probably paying all of visa's legal costs if you issue a small claim in the county court.  See our FREE GUIDE

One example is cancelled flights. I was supposed to be flying to Kenya this Christmas  to work with a charity. I booked the flight with KLM online (£400), and later confirmed the flight only to be told one month later that their partner, Air France, had cancelled the Paris-Nairobi flight. I asked for a refund or to be put on another flight but KLM (or at least their call centre) insisted that it was not their problem but Air France's. 

I was forced to buy alternate flights and have just returned but am now £400 out of pocket. No refund, no apology and no flight.
I know my rights are strong but KLM have been dismissive. As a very real life example I will issue a claim in my local county court costing about £30 and I am going to name Visa as the defendant not KLM.  Visa will pass this to their expensive lawyers at about £300 an hour and KLM will be told to foot this bill. My guess is that they will settle my claim rather quickly.
I will let you know how I get on.  See our detailed Section 75 Guide.

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