I bought a Carpetright gift card for my son earlier this year, which he can’t use now because it’s expired.
My credit card provider rejected my Section 75 claim saying that I had received the gift card so there is no breach of contract. T. Graham, by email.
Carpetright filed for bankruptcy last month, so can a gift card be refunded?
Dean Dunham responds: When you purchased the gift card, Carpetright had a contractual obligation to do two things.
First, you had to send them a physical gift card or some other form of proof that your child now did indeed have credit to spend with the retailer, and second, accept the gift/credit card as payment for goods or services, to the value of the card.
It is clear that the latter has not been fulfilled due to the company’s bankruptcy, 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 by credit card, there is potentially a Section 75 claim.
So if you meet the following three prerequisites, in my opinion your card company is wrong and should therefore pay you.
Firstly, you paid Carpetright “directly” for the gift card. For Section 75 to apply, there must be a direct link between the “debtor” (you), the “creditor” (credit card provider) and the “provider” (Carpetright).
Secondly, the value of the gift card was over £100; and thirdly, she has already complained to the administrators at Carpetright (here a company called PWC) and has received a letter stating that they will not refund her gift card or honour its value.
It is now public knowledge that PWC will not do so. If you meet the above requirements and your card provider continues to reject your Section 75 claim, your next step will be to make a complaint to the Financial Ombudsman Service, details of which can be found online.
If you do this, be sure to make it clear that there has been a breach of contract.
Eon is sending bailiffs to collect money I don’t owe
My monthly Eon energy bill tripled 18 months ago and I have been in dispute with the company ever since.
Earlier this year I was told my meter had expired and needed to be replaced and I’m guessing this could be the problem.
Despite this, EON has still not replaced the meter and has instructed bailiffs to charge me £6,000 in late payments that I do not owe. What can I do? I. McCarthy, via email.
Dean answers: If you have a dispute with an energy supplier over 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 rising energy costs (which has been common lately), increased usage – perhaps you are using more energy than before due to more people living in your home or new appliances – or you might have simply switched to a new, higher-priced tariff.
However, an increase in billing may be due to incorrect meter readings or your supplier switching from actual meter readings to estimated meter readings when compiling your billing.
First, you should make a comparison with the previous year, making sure to compare the same months, as energy consumption can fluctuate at different times of the year.
Present this information to your energy provider and ask for an explanation of the increase.
If applicable, you should also ask the company to provide you with written confirmation that the “outdated” meter is not causing incorrect readings and therefore incorrect bills.
At the same time, you should ask your provider to suspend your accounts while you investigate and thus cancel the intervention of the bailiffs.
If this does not resolve the problem, ask for a standstill letter – this is a letter setting out your supplier’s final response to your complaint – and use it to make a complaint to the Energy Ombudsman.
When you make your complaint, be sure to provide copies of all communications you have had with your energy supplier and make special reference to the fact that they have informed you that your meter has “expired”.
The more evidence you present to support your argument that raising bills is wrong, the better chance you have of a successful outcome.