Rights Under Payments For Works Carried Out
I Have Paid For The Work By Credit Card. Does That Give Me Any Extra Rights?
There are many different ways to pay for services including cash, debit/credit card or loan/hire purchase.
Where the service is paid for using a debit card and there is a problem with the service then it is possible to get a refund via the bank which issued the debit card. You could apply to the bank for a chargeback application.
This is not the same as the section 75 application (below) and is only possible if there are funds in the builder’s bank account to meet the cost. It cannot be used if you are seeking damages to repair work done.
The chargeback remedy can be used for such things as when goods supplied are damaged or not as described, or haven’s been delivered, or if the builder debits your account with more than the agreed amount.
There is a time limit of 120 days to make the claim and with a cut-off time limit of 540 days. These times may vary from bank to bank. In the event that the bank refuses to do what you ask, you can request a letter of ‘deadlock’ to allow you to take your complaint to the Financial Ombudsman Service.
Section 75 Of The Consumer Credit Act 1974 allows you to make a claim against your credit card company to get your money back. The price of the services that you wish to claim must have between £100 and £30,000. It is not necessary to pay for all of it with the credit card providing part of it is. For example, you may pay the deposit for the goods with your credit card and the balance with your debit card. For work valued at less than £100 paid for by debit card you can use the chargeback service (see above).
If the work is faulty, you may make a claim to your credit card company in the same way that you would to the builder. You are able make a claim to the builder and the credit card company at the same time. This can be very useful if the builder has gone out of business, is refusing to compensate you or remedy the situation.
If your credit card provider will not deal with the issue and refuses to accept that there is a claim, the matter should be referred to the Financial Ombudsman Service (FOS). Your credit card provider has eight weeks to deal with the complaint.
If more than 8 weeks have passed since the matter was referred to by your card provider, you will not need to obtain a letter of deadlock to give to the FOS. Any complaints about a claim should be made to the Financial Ombudsman Service within six months of your claim to the bank.
Altion Law are specialists at advising and representing parties in a Contractual Dispute relating to a Construction Project. If you would like to have a confidential discussion with a member of our team, please complete our Contact Us Form, and we will call you back at a time that is suitable for you or you can contact us directly on 01908 414990.