Section 74 Claim - consequential loss

[katies mum]

Good afternoon,

Was hoping for a little advice, if anyone can help please.

Its a really long drawn out saga but my daughter has been trying to get a refund for a faulty HTC phone for the past 2 months, with advice from the Trading Standards and she has had with no joy whatsoever, despite all her correspondence (all recorded delivery). So she had an Independent Report done including photographs on the phone to help with her case and this has confirmed that their is a fault with the phone and it is not fit for purpose. Everything was sent to HTC and they signed for it on 1st June.

As no reply has been received back from HTC she is going to make a Section 75 claim.

The Independent Report was only obtained after trying to resolve this matter with HTC, it was a last resort on her side to prove a faulty phone. Would this cost be considered a consequential loss? or if the claim is successful could she only hope to recoup the cost of the phone from the credit card company? The report cost her £120 (not paid by credit card) and she would not have had it carried out if she had not needed to back up her case to prove the phone does have a fault.

Hope this makes sense, would be most grateful for any help.

Also we have been corresponding with HTC at their offices in Slough. Unable to find address or email for CEO in the UK, might anyone know where I could find this information?

Thank you so much to anyone who might be able to help.

[R0b]

Re: Section 74 Claim - consequential loss

Hello,

When you make a s75 claim the credit card company has the same rights and obligations as HTC would have. If there are any terms and conditions you may wish to read them as generally consequential losses are excluded. But in this case I would consider the report to be a direct loss which flows naturally as a result of the breach so that would be recoverable. Consequential losses are those which don't flow directly from the breach but were in the contemplation of the parties when the contract was made and providing that they are not too remote e.g. Loss of profits.

Most credit card companies (if not all) ask you to complete a s75 form as part of the process so if this is what your looking to do then you might be wise doing this now so that you can fill it in and send it off when your ready to do so.

i would expect you to recover the £120 for the report on the phone. If either the credit company or HTC don't play ball, then you can issue proceedings and hold them jointly liable as defendants as a worst case scenario.

was the phone purchased on its own or as part of a mob Let phone contract.

[katies mum]

Re: Section 74 Claim - consequential loss

Thank you so much for taking the time to reply.

The phone was purchased direct from HTC on their website.

I spoke to Halifax yesterday and they gave me all the email details to send her claim though, she sent an email last eveing with all the details in and many attachments. Also stating similar to what you have told us about the £120 (but your wording is better than ours, but as you say she would not have got the report done if HTC wern`t being such a pain)

I will let you know how we get on, hopefully something will be sorted soon as she has been fighting HTC since the beginning of April.

Thank you again

[R0b]

Re: Section 74 Claim - consequential loss

Your report should provide the necessary evidence to show the phone was faulty so it shouldn't be too difficult to get a refund of the money spent so far. I'm not sure of the timescales Halifax take for investigating s75 claims but I would keep the pressure on and getting an update every couple of weeks as to what stage it is at.

Whether you wish to notify HTC that you are also in talks with your CC company that is up to you.

[katies mum]

Re: Section 74 Claim - consequential loss

Thank you again.

We were secretly hoping the credit card company would`nt take too long (but never having done this before don`t really know timescales). The Citizens Advice (Trading Standards) have told her to send a Letter before Court Claim to HTC which is typed out and ready to send but really did`nt think the long drawn out saga would go this far and if possible don`t want to issue County Court papers, as again this is a new area for us and we don`t really know what is involved, but suppose it has to be done as the final step otherwise they have won and she is nearly £600 out of pocket.

Not going to tell HTC about the Halifax credit card as they might think its an easy get out clause for them.

[katies mum]

Re: Section 74 Claim - consequential loss

Hello, just wanted to let you know of the excellent service my daughter has received from the Halifax. My daughter submitted her section 75 claim on 13th June to the Halifax and they have settled the matter and the money has been paid into her bank account. R0b, it also included the £120 for the Independent Report.

Disgusted with phone company HTC who have ignored all our letters, Independent Engineers report etc proving the phone was faulty, these big companies just don`t care about their customers.

10 out of 10 for the Halifax.

[R0b]

Re: Section 74 Claim - consequential loss

Good news to hear that it is all sorted and that Halifax have been swift in resolving the matter. Some banks like to drag their heels on s.75 claims even if there is plenty of evidence to support your claim but in this case I think the likelihood is that Halifax would probably just write off the money they've paid you as its not likely to be commercially justifiable pursuing HTC.

I've purchased HTC phones direct before on a couple of occasions and have had no issues but clearly in your case, their service has been pretty poor.

Either way, good result for your daughter and less hassle than going to court.

p.s. it pays to use your credit card to purchase goods £100 or more

[katies mum]

Re: Section 74 Claim - consequential loss

Thanks R0b, never had to do a Section 75 claim before, even though we always use our credit cards for purchases over £100. I am so grateful she did use her credit card and Halifax have been so brilliant, but it is awful the way she has been treated by HTC over the past 4 months and all the hassle and worry it has caused her.

Now she starts on the quest to get a new phone. I suggest something that bounces, is completely waterproof, comes with a guarantee it will never break and if possible its sold by John Lewis!