Plastic – the car dealer’s inflexible friend

legal updates

Credit cards and debit cards do not offer a guaranteed form of payment for goods or services.

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We get lots of enquiries about “Chargebacks”.

The unlegislated arrangement whereby card providers (seemingly always) decide in a consumer’s favour and return monies to the cardholder’s account on the presumption that the consumer is always right and cars are always defective.

As one letter we had in from a very well known company (who shall remain anonymous) reminded us – as we remind you now – “credit cards and debit cards do not offer a guaranteed form of payment for goods or services. Each transaction undertaken is subject to return by the card issuer even if authorisation has been obtained and all standard sales procedures have been followed. Disputes regarding the quality of goods and services are included…”

The problem I have is that it is the card issuer becomes the sole judge in such disputes regardless of merit and I feel that often they bend far too easily towards whoever screams at them the loudest which, inevitably, will be the consumer. 

Would you ever think that in the school play, aged 7, I was Snow-White’s “Grumpy” Dwarf?!

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Jason WilliamsLegal AdvisorRead More by this author

Related Legal Updates

Stop Scams UK

Never transfer money to alternative account details when requested by a means of electronic communication, even if it seems as if it is from the other party.

Beware of customers buying multiple cars on one debit card

Chargebacks can typically be made by a cardholder up to 4 months after a sale.

The problem with card payments

The person entering the PIN should be the authorised cardholder.

Further caution warned over electronic payments scam

Pay in an undisclosed “mystery” sum (a few pounds and pence) and ask the customer to notify the client what amount did they received, before the bulk is transferred.

Credit card surcharges set to be a thing of the past

In January 2018 it is likely that no surcharges will be passed on for consumer credit cards usage.

Be on the ball – it may cost you

Our client had agreed a sale but on taking payment via a card machine, the amount was short by £500.

eBay Fraud – Lawgistics Lucky 7

Many clients use eBay to purchase and sell stock. The process is quite easy but like all online transactions it is open to fraud.

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