Hi,
yes Ian, thanks for this.. I'm not sure though, if its going to be so
easy to continue to do a chargeback in the UK if paypal are involved.
I think the FSA comment below is starting to become better known:
http://www.fsa.gov.uk/pubs/cp/cp05_04.pdf
specfically within this:
"Case study 3: where the FSA decided not to become involved
Where section 75 of the Consumer Credit Act 1974 applies, a cardholder who
has used their credit card to pay for goods or services has a claim against the
card issuer for any breach of contract or misrepresentation by the supplier of
the goods or services.
FOS received a number of complaints against credit-card issuers, where the
general circumstances were as follows:
-- Mr Buyer holds a credit card issued by Card-issuer plc.
-- Mrs Seller is selling an item on the eBay internet auction site.
-- Mr Buyer makes the successful bid for the item being sold by Mrs Seller.
-- Payment is to made through PayPal (an FSA-regulated electronic money
institution)
-- Mr Buyer opens an account with PayPal.
-- Mr Buyer credits that account with a payment from his credit card issued
by Card-issuer plc.
-- PayPal transfers the payment from Mr Buyer's PayPal account to Mrs
Seller's PayPal account.
-- Mrs Seller withdraws the payment from her PayPal account.
-- Mrs Seller does not send the paid-for item to Mr Buyer.
-- Mr Buyer is unable to recover his payment through PayPal or eBay.
-- Mr Buyer claims reimbursement from Card-issuer plc.
Compared to the normal use of a credit card to buys goods in a shop, involving
PayPal introduces an additional stage in the chain of payment. So, does section
75 apply in such cases or not? That was an issue with wider implications for
card-issuers and their customers.
The FSA agreed this was not a matter for it. Issuing credit cards is not an FSAregulated
activity and the FOS was already liaising with the OFT (which is the
licensing authority under the Consumer Credit Act 1974).
The question was a legal one, but the amounts involved in each case were
comparatively small. The issue was not covered by the contemporaneous court
proceedings between the OFT and four card-issuers concerning aspects of
section 75.
In the spirit of the arrangements proposed in Chapter 4 of the CP, the FOS
invited the chairman of the Banking and Loans Liaison Group (on behalf of
the industry) and the Chairman of the Financial Services Consumer Panel (on
behalf of consumers) to each nominate an expert to provide input.
In the light of input from these experts, and from the OFT, the FOS concluded
that section 75 did not apply in the circumstances of the cases that had been
brought to it.
Annex B 3"
I'd be interested to know if people have started to get problems doing
chargeback as a result of this, and what people's experiences have been of trying
to recover all money purely using paypal?