Credit Card-Loophole

Have you used your credit card to purchase an item. Well, here is something you may, or may not know.

Most all of us are aware that if you pay by credit card if the purchase is/over £100 and not more than 30,000 pounds you can claim your money back from the card company. on grounds the seller fails to honor the contract or the item is faulty or if the seller wrongly describes it or if the supplier goes out of business.

Be aware this protection may only apply to cards such as Visa or Mastercard, and those such as American Express are charge cards, where the balance has to be paid in full each month, debit cards or credit card cheques. would not have this level of protection.

Woman holding credit card and shopping
Woman holding credit card and shopping

Are you aware your guarantee could still be worthless. Below is when this may apply…

If you purchase an item on your card from a store, shop, www, etc. you should make sure you are buying it directly from that particular company. If the item you buy is through a third party then your card guarantee could be worthless.

An example of this would be…
Let us say you buy something from PURCHASE ME NOW and the item you buy is from one of the companies that sell through Purchase Me Now. This then may make your card guarantee worthless.

Why I hear you say. Well, your card guarantee only covers you when buying directly equal liability. from the named company concerned in the transaction. In my example above you have purchased something, from a third party, ie. you pay your money to PURCHASE ME NOW who then pay the company you bought from. In these cases the credit card company would usually say it didn’t have a direct relationship with the supplier, so isn’t equally liable.

Its the third party bit that stops you claiming a refund from your card under section 75 of the Consumer Credit Act 1974, protect your purchases. You could call it a loop-hole in the small print and a change in the law should be called for but is probably or highly unlikely to happen. Trying to make a claim in the courts is possible but unlikely to succeed.

I hasten to add PURCHASE ME NOW is fictional and does not exist. I use them here only as an example.


Attended state schools (St Peters & Paul's) Spent my last 4 years attending St Cuthbert Secondary. Driver and warehouse manager 25 years plus. Spent 16+ years attending Newcastle Uni and North Tyneside College. (Humanistic approaches in Counselling). Qualified some years ago. Don’t have many dislikes apart from people who try to be something they’re not (conveniently forget where their roots are), and I do not suffer fools easily so they tell me, or people that over talk others. I eat and drink to live, love all kinds of music, places of interest, photography, Singing, computing, reading for pleasure (mostly supernatural/horror, James Herbert / Stephen King), and swimming.

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