Equivalent under Irish law to the UK's Section 75 Consumer Credit Act 1974

[briantk]

This is a repost of an original query by jml1949 from 2013.
(https://www.askaboutmoney.com/threa...s-section-75-consumer-credit-act-1974.180228/)

"Does anyone know if we have an equivalent under Irish law to the UK's Section 75 Financial Services Act 1974 (basically it
enshrined into law the credit card's responsibility if something goes wrong with a purchase?

If you pay for something costing between GBP100 and GBP30K and you use your credit card to pay, then the card issuer is
equally liable if something goes wrong.

I know we have Chargeback but that isn't legally enforceable as far as I am aware."

It didn't get much of a response at the time, so I'm wondering if anyone has better information today?

Thanks.

 

[TomEdison]

I think the nearest Irish equivalent is the Consumer Credit Act 1995 section 42, which is much more limited. It only applies where there's an exclusive credit arrangement in place — Lender has agreed with Supplier that Lender will provide finance to purchasers of Supplier's goods/services. If you're a customer who makes use of this credit arrangement, and then the goods/services are not supplied or are supplied in a way that is in breach of your contract to buy them, and if you pursue your remedies against Supplier but fail to get the satisfaction to which you are entitled (typically, because Supplier is insolvent or has ceased to trade) then you can chase Lender instead.

But it only applies where there's a credit arrangement of this kind in place, and you make use of it. If you arrange your own credit — e.g. by using your credit card — then s. 42 doesn't apply.

 

[briantk]

I think the nearest Irish equivalent is the Consumer Credit Act 1995 section 42, which is much more limited. It only applies where there's an exclusive credit arrangement in place — Lender has agreed with Supplier that Lender will provide finance to purchasers of Supplier's goods/services. If you're a customer who makes use of this credit arrangement, and then the goods/services are not supplied or are supplied in a way that is in breach of your contract to buy them, and if you pursue your remedies against Supplier but fail to get the satisfaction to which you are entitled (typically, because Supplier is insolvent or has ceased to trade) then you can chase Lender instead.

But it only applies where there's a credit arrangement of this kind in place, and you make use of it. If you arrange your own credit — e.g. by using your credit card — then s. 42 doesn't apply.

Thanks Tom. This confirms my suspicion. As often seems to be the case, Irish consumer law seems to lag behind other jurisdictions.

 

[TomEdison]

Thanks Tom. This confirms my suspicion. As often seems to be the case, Irish consumer law seems to lag behind other jurisdictions.

It's the UK that's out of line here. S. 75 is bizarre, and hard to justify on public policy grounds. I think it dates from a time when consumer credit was normally provided in the form of hire-purchase deals or other credit brokered by the seller as a tied agent of a finance house, and credit cards were a very small part of the overall consumer credit market.

It's very hard to produce a plausible public policy justification for why, if you pay with a credit card, the bank becomes liable for the merchant complying with the terms of the contract of sale — something over which the bank has zero control — but, if you pay with a debit card, the bank is in the clear.

 

[ClubMan]

Thanks Tom. This confirms my suspicion. As often seems to be the case, Irish consumer law seems to lag behind other jurisdictions.

What other cases? How often? What jurisdictions? Surely we're in line with most or all of the other EU countries on such matters given that legislation in this area usually comes down from the EU?

 

[Dr Strangelove]

Surely we're in line with most or all of the other EU countries on such matters given that legislation in this area usually comes down from the EU?

Banking and payments law is reasonably standard across the EU due to the Single Market. Think deposit insurance, bank transfer via IBAN, interoperability of cards, etc, all of which have become much more similar over the last 20 years within the EU.

Things tend to differ most in the area of consumer protection as there is much less EU law in this area.