A few years ago I paid for a solid wood floor to be installed in my new build home. It looked absolutely gorgeous, but after about a week a ridge the whole length of the kitchen had risen up to a height of about one foot. Luckily there were workmen still on the site and one of them kindly agreed to make it safe by cutting a section out of the floor, easing the pressure and providing a level floor. We contacted the company who installed the floor who promised to come and fix it, but they didn’t show up. We then found out that the company had gone bust, but all was not lost as we had paid the company using a credit card which meant that the credit card company was equally liable. More details can be found on the OFT’s website:

Under the provisions of the Consumer Credit Act, credit providers may share liability for any breach of contract or misrepresentation by suppliers of the goods or services which have been financed (even partially) by the credit.

The relationship between supplier and credit provider determines whether the provisions apply. Responsibility is shared if:

• the cash price of the item is over £100 but not more than £30,000
• the credit agreement is regulated under the terms of the Act
• credit is granted in the course of the provider’s business
• credit is advanced under arrangements between the credit provider and supplier of goods or services.

So we contacted American Express thinking that it would be a trivial matter and resolved quite quickly. How wrong we were? They denied that they had any liability whatsoever. I guess this is a strategy used to deal with these claims to minimise costs as there is no doubt that some people will just give up. Not us! Next stop was Trading Standards who wrote a letter to Amex on our behalf and guess what the matter was resolved almost immediately.

If you are making a purchase between £100 and £30,000 it is always sensible to use a credit card to share the liability. The good thing is that you don’t need to pay the full amount on the credit card, just a small fraction and you will be covered.