Law guide: Complaints and disputes

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Paying for your holiday

Paying for your holiday

Contents

There are some advantages to paying for your holiday using your credit card. These apply whether you're paying for goods and services at home or abroad.

The law

Under section 75 of the Consumer Credit Act 1974, credit card companies must share liability with the supplier. This means that if you later claim because the supplier has not stuck to a promise or promises made in a contract (i.e. if they have breached the contract), or if they gave false or misleading information (misrepresentation), legal responsibility will be shared between the credit card company and the supplier (see below). This applies to goods or services costing between £100 and £30,000.

The amount you can claim isn't limited to the amount you spent on your card. You're entitled to claim for all losses caused by the breach of contract or misrepresentation. This applies even if a credit card was used only for the deposit and the rest was paid using another method of payment. So long as the item costs more than £100, you'll be protected.

It's important to be clear what a breach of contract is. If the dispute boils down to a question of taste, or simply to disappointment with the goods or services bought, it's unlikely there has been a breach of contract.

Exclusions

If you paid an agent or a third party who were acting on behalf of the supplier (rather than paying the supplier directly), then you might not be able to claim for goods or services. Examples would include travel agents taking payments for an airline, or if online payments are made through processors such as Paypal or WorldPay. The exception to this would be if the funds were paid directly to the supplier and there's a legal agreement with the payment processor creating an arrangement to pay the supplier, such as a 'commercial entity agreement'). Examples of suppliers selling through third parties include Amazon Marketplace and Groupon.

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