Your rights when paying by credit cardFAQs

The trader won’t help

I recently had a new kitchen installed but the polished granite worktops are poorly cut and badly finished. I tried raising my concerns with the installer but had no joy. I paid by credit card – can I take up the matter with them?

As long as the kitchen installation contract wasn't over £30,000, the credit card company is as liable as the trader for this breach of contract – in other words a failure to exercise reasonable care and skill under the Supply of Goods and Services Act 1982 – and you are entitled to claim compensation from the card company directly.

Get several quotes from other traders for the cost of putting this work right. Then write to the card company explaining the problem, and claiming the cost of fixing the worktops, and provide the creditor a reasonable amount of time to pay for the remedial work.

If the credit card company doesn’t pay up, ask for a letter of deadlock so you can refer the dispute to the Financial Ombudsman Service (FOS). If more than eight weeks has passed since you submitted your claim to the card provider, you can refer your claim to the FOS straight away.

Misrepresented offer

When I took out a mobile phone contract, the salesman told me that the deal included a cashback offer – 25% of my line rental back after 12 months. But when I tried to claim the money, I was told there was no such offer. I paid by credit card, but my card company says it’s nothing to do with them because the phone company’s terms and conditions say nothing about the cashback. What can I do?

Regardless of what the contract says, you have a claim for misrepresentation against the phone company. As long as the phone contract was worth more than £100 you also have a claim for misrepresentation against the card provider. However, you have a problem of evidence, because to make a successful claim, you probably need some proof of what the salesman told you – otherwise it is your word against his.

Credit card deposit

I bought a car from a small local dealer. I paid a £500 deposit with my credit card, and the balance of £4,000 by cheque. But when I went to collect the car, his premises were padlocked and empty, and I can see no way of getting the car. Can I claim for more than the £500 from my credit card company?

Yes. The amount you put on your card doesn’t matter – the card company is liable to the same extent as the dealer for the failure to supply the car. You’d be entitled to at least the £4,000 back, and possibly even more if you could show that it will cost you more to buy the same car elsewhere.

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