consumer protection - part payment by credit card

Found 23rd Nov 2009
Quick question. If a friend paid for say a £5,000 holiday and puts £100 of the price on a card and paid therest on a debit card and the company goes bust is he protected under consumer protection legislation as he only paid for some of the holiday on the credit card and not the whole amount? Thanks

16 Comments

No matter how small amount you put on a credit card, the whole purchase is covered.

what he said ^

when i bought my new car i was told by the sales team if i paid the deposit by card, the full amount would also be covered, so i would assume the same applys with holidays.

Original Poster

thanks - that is what I thought. That is very lucky. cheers

Original Poster

thanks both of you

kyalion;6977054

No matter how small amount you put on a credit card, the whole purchase … No matter how small amount you put on a credit card, the whole purchase is covered.



Are you certain, I thought it was £50/£100?

Original Poster

rep added

As long as you have paid a minimum of £100 (One Hundred Pounds) by using a credit card you are covered for the whole cost. Example for holiday £100 on credit card £4900 in cash then total for holiday would be covered. This is not the case with bank debit cards, usually you are not covered so best use a CREDIT card for safety

thesaint;6977137

Are you certain, I thought it was £50/£100?



Certain.

As long as you pay some (>1p) on a credit card and the total transaction value is above £100 then you're covered. Although technically I think there's some clause about you being liable for the first £50 or something but I've never seen a company actually use it.


I think that's right but could of course be wrong.

sharpei3;6977249

As long as you have paid a minimum of £100 (One Hundred Pounds) by using … As long as you have paid a minimum of £100 (One Hundred Pounds) by using a credit card you are covered for the whole cost. Example for holiday £100 on credit card £4900 in cash then total for holiday would be covered. This is not the case with bank debit cards, usually you are not covered so best use a CREDIT card for safety



Absolute tosh. What if it was a £99 holiday? Please quote your source.

Epic fail for first post.

kyalion;6977381

Absolute tosh. What if it was a £99 holiday? Please quote your … Absolute tosh. What if it was a £99 holiday? Please quote your source.Epic fail for first post.



A £99 holiday wouldn't be covered anyway afaik?

kyalion;6977381

Absolute tosh. What if it was a £99 holiday? Please quote your … Absolute tosh. What if it was a £99 holiday? Please quote your source.Epic fail for first post.



fool.co.uk/cre…spx

Buy anything for between £100 and £30,000 on a credit card and you have v … Buy anything for between £100 and £30,000 on a credit card and you have valuable rights under Section 75 of the Consumer Credit Act. It means that when you buy something using your credit card, your contract is with both the trader and the card issuer. They have equal liability for anything that goes wrong so you can take action against either of them to get compensation. The legislation is restricted to goods sold for more than £100 and less than £30,000 but it's tremendously useful in situations where, for example, the goods are damaged or don't turn up, or the company goes bust.



Epic fail for a 4,258th post

Titchimp;6977425

http://www.fool.co.uk/credit-cards/information/why-use-a-credit-card.aspxEpic fail for a 4,258th post



lol!!!


Didn't realise about the upper limit of £30k but looks like I was right with the rest!

Titchimp;6977425

http://www.fool.co.uk/credit-cards/information/why-use-a-credit-card.aspxEpic fail for a 4,258th post



I stand corrected. I did a course on this less than 3m ago, and we were told it was from £1. Unbelievable !

My sincerest apologies to the OP and subsequent poster for my incorrect info. :oops:

Benjimoron;6977379

As long as you pay some (1p) on a credit card and the total transaction … As long as you pay some (>1p) on a credit card and the total transaction value is above £100 then you're covered. Although technically I think there's some clause about you being liable for the first £50 or something but I've never seen a company actually use it.I think that's right but could of course be wrong.



financial-ombudsman.org.uk/pub…htm

Details about the first £50 but it looks like it only applies to fraud transactions as opposed to a normal purchase.
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