Readers of welovestornoway.com have told us of trying to claim back money lost on tickets bought for the Midnight Sun Weekender festival – and of being told their claims via credit card companies are out of time as they are more than 120 days since the purchase was made.
They have also been told they can’t claim if they have used a debit card, not a credit card.
However, what they are being told is incorrect.
Another reader has now drawn our attention to the difference between Chargeback – a facility which relates to both debit and credit cards – and Section 75, which is for credit cards only.
If you pay for goods or a service, you can claim Chargeback on either your credit or on your debit card.
And the 120 days limit applies not just to the date of purchase – but to the date when the goods were due to be received…that is, the date of the concerts themselves.
The ukfinance.org.uk website explains in relation to Chargeback: “You should make a claim as soon as you identify the problem or are concerned about a transaction. This is because your card provider usually needs to start the chargeback process within 120 days from when you made the transaction or when you were due to receive the goods or services.”
Alternatively, if you’ve paid by credit card, you can also claim under Section 75 if you have purchased something for a total transaction value of between £100 and £30,000 and paid any amount of this on your credit card. There’s six years to make a claim in this way.
The ukfinance.org.uk website explains that: “Paying with a debit or credit card can provide additional protection if something goes wrong.
“Chargeback exists for both credit and debit card purchases. It is a mechanism for your card provider to reclaim money from the retailer's bank.
“It can often be quicker and easier to sort out any problem with the company you bought the goods or services from, even if the company has gone out of business but is continuing to trade (for example, through the appointment of administrators).
“Your card provider needs to provide evidence to the retailer's bank to make a chargeback claim. The evidence can be in the form of a written letter or email from you, an online form completed by you on the card provider's website, or a written form that the card provider completes following a discussion with you.
Section 75 is part of the Consumer Credit Act 1974 and protects you if you use your credit card to buy something costing over £100 and up to £30,000.
If you paid with your credit card, you may be legally entitled to get some or all of your money back if, for instance, the company you bought the product or service from breaks their contract with you, or fails to provide the promised service.
You may be entitled to your money back even if the company has gone out of business and ceased trading, the website says.