Timeshare Consumers Association

Consumer Credit Act 1974 (CCA74)
Section 75 of the Consumer Credit Act 1974 states that the lender of money for a purchase is jointly responsible with the seller for the purchaser getting the goods or service purchased, or receiving a full refund if they do not receive the goods or service. What this means in practice is that if you paid more than œ100 by a UK issued personal credit card (but not a debit or charge card), or borrowed money under a loan agreement regulated by the CCA74 and arranged by the trader, then you can claim ALL the money you paid (irrespective of how you paid it) provided that the maximum contrcat value does not exceed £30,000, back from the card company or lender if you do not get what you bought.
A claim can be made under either (or both):-

misrepresentation - that you were told lies to entice you to sign and you would not have signed if you had known the truth. The lies need to be of "substance" .

breach of contract - in that the goods or services that you bought have not (or cannot) be delivered.

To succeed in a claim you need to be able to prove, preferably from written evidence:-
1. What you bought or were promised. The purchase agreement is the most common form of evidence but you may have to rely on what you were told verbally prior to signing the purchase agreement.
2. That you paid more than œ100 by credit card (or borrowed to finance). A copy of the payment slip or credit agreement is usually sufficient. You will also have to supply evidence of any other payments that were made. (bank statements etc.)
3. That you did not - or cannot - get what you bought or were promised. Evidence of this can be in a number of forms:
i. formal evidence that the company that was to provide the goods/service is no longer trading
ii. a written statement that the goods/service will not be delivered
iii. non delivery of the paperwork to enable to you to obtain the goods or services (i.e.. not receiving a cash back certificate which is necessary to register your claim)
iv. records of unsuccessful attempts to obtain the services. (diary or similar)

A claim will only succeed if it is made against the comapny that took the money, not against any other company that may be involved in the purchase.
A claim is made in the form of a letter to the card company - there is no special format (but see later) nor any charge.
However there are a number of restrictions when making a claim under the CCA74:
1. Following a series of court hearings, culminating in an appeal to the House of Lords (2 - 3 October 2007), it was confirmed that the use of credit cards overseas is covered by the CCA74
2. The law of limitations says that a claim cannot be made after a period of 6 years. However it is generally recognised that the 6 year period starts from the time that you became aware of (or ought to have become aware of) the non delivery.
3. If the organisation with whom you contracted deny in the purchase agreement that they have responsibility for delivery of the goods or services then the claim will be rejected as the card company have no liability for third parties failing to deliver.
4. Likewise, if the card payment was made to a different company than the one you contracted with, then third party argument would also apply. Although this may be fraudulent
If you used a credit card and borrowed money (or used two credit cards) you could claim the full amount from either or both - but only to a total of the total originally paid. But it is good practice to make a claim against the supplier before claiming from a lender. If the lender gives you a final refusal then you can, in most cases (see later), take the matter to Financial Ombudsman (there is no charge) - the lender is obliged to tell you how to do this. If the Financial Ombudsman decides against you there is still the option of taking the lender to court, although a court is very likely to follow the Financial Ombudsman ruling. WARNING:- Not all lenders are members of the Financial Ombudsman Service - check first.
If the lender refuses to give you a letter of deadlock, then write to the Financial Ombudsman (South Quay Plaza, 183 Marsh Wall, LONDON, E14 9SR) complaining about the conduct of the lender and asking the Financial Ombudsman to send you the leaflet explaining how they work.
Be prepared for the card company to resist paying. Most will automatically reject your first attempt - and even the second attempt - but you should persist with the claim and let us know if you receive a final rejection, and the reason given for that rejection. Our advice is to threaten to take your claim to the Financial Ombudsman should you receive two letters of rejection. If this does not work, then definitely take your claim to the Financial Ombudsman.
Your claim letter will have the following paragraphs:-

Heading "Claim under S75 of the Consumer Credit Act 1974"

A statement of what you bought, where and when, with a copy of the purchase agreement enclosed.

Details of all payments made with copies of supporting evidence.

A statement that you have not or cannot obtain the service with a comment that this is either misrepresentation and/or breach of contract. Provide all the evidence that you can to support this statement.

A request that the card company refund the whole amount paid.

Obviously, all your statements must be true.
First National Bank plc (now called First National Home Finance Ltd) - "FNB" If you are unable to get a satisfactory reply from FNB to a claim under the Consumer Credit Act 1974 it cannot be dealt with by the Financial Ombudsman so we suggest that you ask both of the following authorities to help you:-

Finance & Leasing Association, 15 Kingsway, LONDON, WC2B 6UN

Credit Licence Enforcement Team, Office of Fair Trading, Salisbury Square, LONDON EC4Y 8JX

TCA advice
Many card companies automatically reject the first attempt at a claim. You will need to be persistent and it may take up to four letters to the card company (or referral to the Financial Ombudsman) before you get a satisfactory reply.
June 2007