June 11, 2007 at 5:50 pm #52942
It has recently struck me (forgive me if it has been mentioned before, but I can’t find any reference) that a lot of people will make an initial deposit payment using their credit card. In every case, I would expect that amount to be more than £100.
Now, the consumer credit act lays down some very specific rules for items purchased or part purchased with the use of a credit card. Specifically, if you buy an item or service which subsequently becomes defunct, the credit card company is jointly liable. If you TV breaks and the store has gone bust, you can get recompense from the card company. Why then should this principle not apply to anyone who has entered into a property purchase, paid a deposit and the “goods” have not been received?
Just a thought. Didn’t know if anyone had tried that route or if there is any specific rule about it?
June 11, 2007 at 8:24 pm #72882
I’m in Spain at the moment so can’t check the details – but I have looked into this previously and I think you will find that there is a maximum as well as a minimum limit which takes house purchase out of the terms of the act.
June 12, 2007 at 1:50 pm #72920
The protection applies to payments of more than £100 and under £30,000 made in this country and it holds the credit card issuer jointly liable for the supply of goods or services. In short, under Section 75, if you are sold faulty goods or receive shoddy service, after you have sought and failed to get any satisfaction from the seller, you can approach the card issuer to receive compensation.
This only applies to purchases made in the UK.
June 12, 2007 at 2:06 pm #72921
That’s unfortunate :cry:. It could have been a good way to try and retrieve at least the deposits paid out by people.
But…. If it applies to purchases made in the UK, could it be argued that if you pay your deposit money whilst physically in the UK (as opposed to whilst in Spain), you are making a purchase in the UK (does that make sense??)?
June 13, 2007 at 11:27 am #72935
If it applies to purchases made in the UK, could it be argued that if you pay your deposit money whilst physically in the UK (as opposed to whilst in Spain), you are making a purchase in the UK
Not sure about Spain, but my understanding of UK contract law is that the contract is completed when/where acceptance of the offer takes place.
On that basis, you are in the UK and offer to pay the deposit on a credit card – that offer is accepted in Spain by the transaction being put through the credit card terminal. On that basis, the contract was made in Spain.
If the agent accepting the deposit is in the UK and the offer is made to them in the UK and acceptance is made by the transaction being passed through a UK sited card terminal, I guess the contract was made in the UK and would be covered.
However, the signed contract that usually goes alongside the payment of the deposit for a Spanish property will normally specify the jurisdiction to be applied to the contract and will normally be the home town Court of the seller and that will probably over-ride the principal of place of acceptance anyway.
June 18, 2007 at 11:48 pm #73058
I paid a couple of thousand euros through my credit card to pay for a storage room in the apartment complex which I was to complete on and paid for through my credit card… a few days later , when we had found out we were being deceived we phoned the credit card company and explained the situation and they just did not want to know!!! they did not want to have it returned to us even though we had letters from our solicitor to back us up……eventually we had to go through the spanish legal system to get it (and our depositand interm payments returned)
so from my experience…the credit card company does not want to get involved,
June 19, 2007 at 11:11 am #73064
Hi betty boo
As I said earlier its only for transactions in the UK that you can get protection.
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