Any section 75 experts?

[milkround]

I'm asking this here rather than in the law section as I want someone who actually knows what they are talking about rather than someone with a google certified expert badge.

Does section 75 apply to personal finance in relation to a service? IE not a credit card.

My partner has paid for some dental treatment. Today she has gone to the dentist. And they have disappeared. Google shows this has happened at all the business premises. She paid the £500 deposit on debit card. But spread the cost of the treatment over 12 months. She signed an agreement with a finance company and the money went directly to the dental company.

If no cover applies that's fine. But we are flying to Mexico tomorrow at 7am for 10 weeks. And today she has a job interview on the other side of the country. So I really just want to help her out and find out.

I'm happy to provide any further info from her. Sorry for being cheeky and asking for free advice. If anyone does help let me know a charity and I'll send over some cash to them.

Cheers

[MadProfessor]

The consumer protection offered by Section 75 does apply to a service (the same as a product) but it must have been paid with (or part paid with) a credit card. You said that your wife paid the deposit with a debit card and therefore there is no protection from the bank/card issuer under Section 75.

You may have a claim against the company providing the point of sale loan depending upon whether you have a direct relationship between her, the loan company and the dentist. I think the test is whether it was a pre-agreed loan i.e. the loan company agreed to finance the purchase of the service before the service commenced and paid the dentist directly. It doesn't cover you, for example, if you take out a personal loan from say Bank X and then use the money they paid into your own account for the service.

You would make a claim to the loan company in the first instance and then if they reject it you would have six months to make the claim to the Financial Ombudsmen.

As an aside, did the dentist go into administration or was there some fraudulent issue as well?

So in summary, yes I believe your wife has a claim against the loan company but not her bank.

[anonymous-user]

It can also depend on the issuer of the debit card - some of the premium bank account cards are a bit more friendly on such things: not a statutory responsibility, but part of the premium offer

There is a voluntary scheme called chargeback that might cover her £500

The rest of the money, covered by the finance agreement, may well depend on the specific terms of the agreement: what does it say about the provider going skint?

Have a look at the link below and talk to the card provider and the finance co.

https://www.equifax.co.uk/resources/money_manageme...

[milkround]

MadProfessor said:

The consumer protection offered by Section 75 does apply to a service (the same as a product) but it must have been paid with (or part paid with) a credit card. You said that your wife paid the deposit with a debit card and therefore there is no protection from the bank/card issuer under Section 75.

You may have a claim against the company providing the point of sale loan depending upon whether you have a direct relationship between her, the loan company and the dentist. I think the test is whether it was a pre-agreed loan i.e. the loan company agreed to finance the purchase of the service before the service commenced and paid the dentist directly. It doesn't cover you, for example, if you take out a personal loan from say Bank X and then use the money they paid into your own account for the service.

You would make a claim to the loan company in the first instance and then if they reject it you would have six months to make the claim to the Financial Ombudsmen.

As an aside, did the dentist go into administration or was there some fraudulent issue as well?

So in summary, yes I believe your wife has a claim against the loan company but not her bank.

I think she is covered with section 75. The finance was organised by the dental company and she never got the money directly. She signed a form and they gave her interest free credit to get the treatment. But she couldn't have spent the money in any other way as she never got the money. It was a finance agreement for that treatment.

There is definitely some sort of fraud going on. Looks like the staff have not been paid. The rent has not been paid. And the owners have ran off with the money.

I'll get her to email the finance company and issue a complaint. So far from what I've read from other customers on facebook it seems like the finance companies are agreeing that they have some liability and have agreed to not take any payments whilst they try and work out what the hell is going on.

Annoyingly she was half way through treatment and now is left in limbo. Given we are going away she literally can't even try and get someone to pick up where she left off. She was meant to have the appointment this morning but instead the doors were locked. It wasn't until she googled it and found out in the local papers it had closed with no notice.

[Simpo Two]

I'm a bit late to this, but if she gets her money back, go to a proper dentist, not a get-rich-quick bandit who charges in advance and works with finance companies. That's not a proper dentist, it's a money-grabbing shark.