s75 of the Consumer Credit Act - I have a builder do me an extension

[be96erj]

Hi, this is one for people who really know their contract law, specifically the consumer credit act.

 

This is the scenario:

 

I have a builder do me an extension. Our contract states the work will cost £100k.

 

In order to get s75 CCA protection, I get the builder to give me 4 invoices.

 

Invoice 1- foundations, £25k (price shown on the contract)

Invoice 2- Roof, £25k (price shown on the contract)

Invoice 3- Walls, £25k (price shown on the contract)

Invoice 4, decorations £25k (price shown on the contract).

 

£100 was paid for each invoice using a credit card.

 

The transaction I made on each card was for the invoices, not for the contract. Each invoice takes the pricing from the contract.

 

Does anyone, who has a legal mind with a speciality in contract law, know if I can expect cover under s75 CCA in this situation?

 

thanks

[Conniff]

Not my field, but I would say no cover.

 

If you buy something using a cc that has a value less than £30,000 and pay £100 by cc and the rest by another means, say cash, then the whole lot is covered, so I would say the same is true in reverse and only up to the £30,000 would be covered.

 

Someone who knows more than I will probably correct that if it's wrong.

[be96erj]

thanks for the reply, but the purchases were for the invoices that I paid for.

Each totalling less than £30k.

That is what I purchased, not the entire contract.

[Conniff]

The banks don't just accept a claim and pay out, they investigate and talk to the third party and I don't think they would miss seeing the reason you have done it this way.

 

You should photograph every stage of the building so should anything not go according to plan, you will have evidence of that so can take further action.

[be96erj]

I am trying to claw back some money from my cowboy builder.

 

I have just found out that some of the money that I transferred to him was to his personal bank account

and NOT his company account.

 

Given that his company is a legal entity,

is there anything I can do to claw back the money I sent (via bank transfer) to the cowboy's personal bank account.

 

I am assuming this is illegal.

 

But could my bank get my money back in these circumstances?

 

thanks

[be96erj]

I have just fallen out with my builder who was building my extension.

He subcontracted the gas works which involved moving my existing gas boiler.

 

The gas engineer is refusing to finish the work as he says he is contacted to the builder

and he could be sued by him. I have checked this out and it appears to be the case.

 

No other gas engineer wants to touch the job as they cannot verify the work.

 

I'm stuck in a bad position.

 

Someone suggested that I get an engineer to finish the work but with no guarantee from the engineer.

I could then get an indemnity policy to cover the guarantee.

 

Does anone know if this is possible and if it will be accepted by building control?

 

Thanks

[AndyOrch]

So whats your builder said about it ?

 

Andy

[king12345]

I wouldn't do that.

It's gas we're talking about, that's why gas safe registered people won't give you the green light.

Building control will not pass a gas installation without a certificate from gas safe technician (or engineer).

The only option is to uncover all the pipes and let the engineer/technician inspect and finish the job.

Unfortunately there's no shortcuts with gas and electricity, rightly so imo.

[be96erj]

If a builder constructs a roof to a house but forgets to install one of the beams,

which then causes a crack in the inside of the house,

would this omission be considered accidental damage or something else?

Please understand that this is simply hypothetical!

Thanks

 

A builders insurance policy clause states that any accidental damage to third party property will only be covered if it is NOT part of the contract work.

 

If the contract states that a bathroom will be supplied and fitted,

but actually it is bought by the customer,

delivered,

and then fitted by the builder who then damages the bathroom units,

would this be covered under there insurance policy or not?

[steampowered]

You are going to need to provide more details about what has happened if you'd like to receive sensible input on your problem.

[unclebulgaria67]

A builders insurance policy clause states that any accidental damage to third party property will only be covered if it is NOT part of the contract work.

 

If the contract states that a bathroom will be supplied and fitted, but actually it is bought by the customer, delivered, and then fitted by the builder who then damages the bathroom units, would this be covered under there insurance policy or not?

 

Builders policy won't cover bathroom based on what you have said.

Customer needs to get the unfitted bathroom stored in their house covered by their Home Insurance.

 

Once the builder has started work and touches the bathroom,

it then becomes an issue for the builder to cover themselves ( if they can ).

 

They are expected to have the necessary experience and skill to complete work without damaging items they are installing.

 

Insurances, whether it is a builders policy or homeowners Insurance probably won't cover accidental damage to a bathroom being installed and the builder would have to pay for damaged items themselves.

If they don't pay,

you can take court action if required.

 

Homeowners Insurance usually excludes damage due to faulty workmanship.

 

I am sceptical a builder can obtain accidental damage for items they are installing,

because you could get a rubbish builder who makes a load of claims.

[honeybee13]

Hello there.

 

We don't normally answer hypothetical questions.

 

Why are you asking please?

 

HB

[king12345]

No, that won't be accidental damage and home insurance usually don't cover this kind of situations.

It's the builder that is responsible for not installing the beam.

How can someone"forget" to install a structural beam?

Cowboys!

[be96erj]

I would appreciate any help to my predicament.

 

I recently had some work done to my house and the builder charged me £3000 via his paypal terminal.

 

I paid him £3000 using my barclaycard.

A day later he told me that paypal had suspended his account and that I would need to pay him £3000 in cash.

Trusting him, I paid him the money by bank transfer.

 

Things went bad with the builder and he did not complete the work I paid him for. He left.

 

I then find that £3000 has been taken via my barclaycard!

I call barclaycard and explain what happened.

They stated that the builder said the £3000 on the barclaycard was for labour.

 

I tried to explain that the builder said that paypal had blocked his account and that he did not have the money, but they say that the money has been received by the builder!

 

Can anyone help on how I should deal with this matter?

 

thanks in advance.

[slick132]

Hi Be96,

 

You need to keep all exchanges in writing so you have proof of what's said by BC or anyone else.

 

Write to BC confirming that you were told that the BC payment to the builder had been declined and THAT is why you made a further payment by bank transfer which you can prove by bank statement. Accordingly, you require that BC refund the £3,000 to you immediately. If BC refuse this, you can seek a refund using s.75 CCA 1974 where the 2 banks (BC and the builders receiving account) have to communicate and reach a decision about the matter.

 

You must also write to the builder confirming that you have been misled by him about the BC payment failing due to his alleged suspended Paypal account. Tell him unless he agrees to £3,000 being refunded, you will take court action to recover your funds.

 

1. Did you have anything in writing about the work being done and the cost of it.

 

2. Have there been any exchanges in writing so far with BC or the builder.

 

[be96erj]

hi, thanks for the reply.

 

1. The actual contract that I had with the builder was for over £30k, so I gave him small amounts of money as time went on. There was no receipt given to me when the money was paid via the paypal terminal.

 

2. I have emailed the builder loads of times, but he has ignored all of them

[martin2006]

You will get little joy out of Paypal and as the builder is ignoring your communications then i see you only have the s75 option left through BC.

 

Court action would be a last resort, even if you get a ccj, coukd you be certain he would pay it? Does he own any property?

[slick132]

Hi Be,

 

1. Did you have a written contract covering the works, or any part of it ?

 

2. Did you get receipts for any of the pay'ts made to the builder.

 

3. Have you written to him by letter about the dispute, or only emailed him.

 

4. How much has he billed you for so far.

 

5. And how much have you paid him so far.

 

[Rexroth]

Might I suggest two problems. https://www.uswitch.com/credit-cards/protection-and-rights-credit-cards/

 

Section 75 protection does not apply to contracts over £30K nor to payment made through PayPal.

[Bazooka Boo]

You 'suggest two problems' but I don't see any constructive answers to assist?

 

The OP isn't claiming 30k, thy are reclaiming 3.

 

Regardless of how that is spent on the card PP, ebay, etc etc, S75 protects the card holder.

[Rexroth]

I have provided a reference.

It is constructive to suggest that someone determines whether they do have a right to make a claim before wasting time and energy doing so.

The deal was for over £30K and the sum is a part payment of this larger sum.

 

I shall now leave the matter to those better able to advise.

[martin2006]

There is nothing in the legislation which suggests that Payments made via Paypal are exempt from s75. The reference posted may be contrary to the legislation

[StJane]

be96erj , the info provided by Rexroth about Section 75 protection is correct.

However, you may be able to pursue a chargeback.

 

You 'suggest two problems' but I don't see any constructive answers to assist?

 

The OP isn't claiming 30k, thy are reclaiming 3.

 

Regardless of how that is spent on the card PP, ebay, etc etc, S75 protects the card holder.

 

Sadly, you're misinformed. There are conditions to S75 protection. Perhaps you should read the link which Rexroth posted.

 

There is nothing in the legislation which suggests that Payments made via Paypal are exempt from s75. The reference posted may be contrary to the legislation

 

Yes there is. For Section 75 there needs to be a valid "debtor-creditor-supplier" chain which is usually broken when using Paypal.

 

I have provided a reference.

It is constructive to suggest that someone determines whether they do have a right to make a claim before wasting time and energy doing so.

The deal was for over £30K and the sum is a part payment of this larger sum.

 

I shall now leave the matter to those better able to advise.

 

You've actually been the most informative person to contribute to this thread.

[martin2006]

StJane, my post stated that the reference "may" be contrary to the legislation.

 

Perhaps you could expand on the "However, you may be able to pursue a chargeback" to which you refer in the beginning of your post, but omit to explain how, except for how the OP cant!

[StJane]

By contacting Barclaycard. There is plenty of information about chargebacks available from other online resource which needn't be reproduced in this thread.