I bought a gift card from Carpetright for my son earlier this year which he cannot now use as it has gone bust.
My credit card provider rejected my Section 75 claim saying I had received the gift card so there is no breach of contract. T. Graham, via email.
Carpetright collapsed into administration last month, so can a gift card be refunded?
Dean Dunham replies: When you purchased the gift card, Carpetright had a contractual obligation to do two things.
First it had to send you a physical gift card or some other form of proof that your son now effectively had a credit to spend with the retailer and secondly to accept the gift card/credit as payment for goods or services, to the value of the card.
Clearly, it has failed to honour the second due to the firm going bust so in these circumstances there is a breach of contract.
Where there is a breach of contract in relation to the purchase of goods or services made via credit card, there is potentially a Section 75 claim.
So if you satisfy the following three prerequisites, my view is that your card company is wrong and therefore should pay out.
First, you paid Carpetright ‘direct’ for the gift card. There has to be a direct link between the ‘debtor’ (you), ‘creditor’ (credit card provider) and ‘supplier’ (Carpetright) for Section 75 to apply.
Second, the value of the gift card was greater than £100; and third you have already complained to the administrators of Carpetright (here a firm called PWC) and have received a letter stating it will not refund you for the gift card or honour its value.
It has already become public knowledge that PWC will not. If you do satisfy the above prerequisites and your card provider continues to deny your Section 75 claim, your next step will be to lodge a claim with the Financial Ombudsman Service, details of which you will find online.
If you do this, make sure you make it clear that there has been a breach of contract.
Eon is sending bailiffs to collect money I don’t owe
My Eon monthly energy bill increased threefold 18 months ago and I’ve been in dispute with the firm ever since.
Earlier this year, I was told my meter had expired and needed replacing and I assume this could be the issue.
Despite this, EON still hasn’t replaced the meter and has instructed bailiffs to collect £6,000 in arrears that I do not owe. What can I do? I. McCarthy, via email.
Dean replies: Should you have a dispute with an energy provider about what you believe is an excessive bill, it is advisable to first explore the reasons for the increase.
Several factors can cause this, such as increased energy costs (which in recent times has been common), increased usage – perhaps you are using more energy than previously due to additional people living at your home or the use of new appliances; or you could have simply moved to a new tariff with higher pricing.
However, increased billing can be caused by incorrect meter readings or due to your supplier moving from actual to estimated meter readings when compiling its billing.
First, you should make a comparison from the year before, making sure you compare the same months as energy usage can fluctuate at different times of year.
Present this information to your energy provider and ask it to provide an explanation for the increase.
In your case you should also ask the company to provide written confirmation that the ‘expired’ meter is not causing rogue readings and therefore incorrect bills.
At the same time you should ask your provider to put a hold on your accounts while it investigates and so call off the bailiffs.
If this does not resolve the issue, ask for a deadlock letter – this is a letter setting out your provider’s final response to your complaint, and armed with this lodge a complaint with the Energy Ombudsman.
When you file your complaint make sure you provide copies of all communication you’ve had with your energy provider and make particular reference to the fact it has told you that your meter has ‘expired’.
The more evidence you produce to support your argument that the increased bills are wrong – the greater chance you will have of a successful outcome.
