Section 75 claim after company bust

Legal position:
Section 75 of the Consumer Credit Act 1974 provides protection for certain credit card purchases in England and Wales. It makes the credit card provider jointly and severally liable with the supplier for any breach of contract or misrepresentation by the supplier. This means that if the supplier (the company you bought from) becomes insolvent, goes into administration, or ceases trading, you may still be able to claim a refund or compensation directly from your credit card provider, provided the conditions of Section 75 are met.

Key conditions include:
– The purchase must have been made using a credit card (or another form of consumer credit regulated under the Act, such as a linked credit agreement).
– The total price of the goods or services must be more than £100 but not more than £30,000.
– The claim must relate to a breach by the supplier, such as non-delivery of goods, faulty items, or failure to provide services as agreed.
– The purchase must have been made in the UK or, in some cases, abroad if the credit agreement is governed by UK law.

Importantly, Section 75 claims can proceed even if the supplier is no longer in business, as the liability shifts to the credit provider. However, this does not apply to debit card purchases or charge cards without a credit facility, unless there is a specific credit element. The time limit for bringing a claim is generally six years from the date of the breach (or when you became aware of it), but this can vary depending on the facts.

Practical considerations:
Whether you can successfully claim depends on the specific details of your situation, such as the nature of the purchase, the terms of your credit agreement, any evidence you have (e.g., receipts, correspondence), and whether the insolvency prevents recovery from the supplier directly. If the company is in administration or liquidation, you might also have a claim as a creditor through the insolvency process, but Section 75 often provides a simpler route via the card provider.

Next steps:
1. Gather all relevant documents, including your credit card statement showing the transaction, any contract or order confirmation from the supplier, and evidence of the issue (e.g., proof that goods were not delivered or were faulty).
2. Contact your credit card provider in writing (e.g., by letter or through their formal complaints process) to make a Section 75 claim. Explain the facts clearly, including details of the supplier's insolvency, and request a refund or compensation.
3. If the provider rejects your claim, ask for their reasons in writing. You can then consider escalating to the Financial Ombudsman Service (FOS), which is free and handles such disputes. The FOS can be contacted via their website or helpline, and you generally have six months from the provider's final response to do so.
4. If the amount is small or the case is straightforward, this route avoids the need for court action. However, if the claim is complex or involves higher sums, you may wish to seek independent advice to assess risks such as potential costs if the claim fails.

Please note that this is a general overview, and the outcome depends on the precise facts, which you have not provided here. If your query relates to a jurisdiction outside England and Wales, I recommend consulting a specialist in that area, as this service focuses on English and Welsh law.