Business Card Credit Deal, not always easy?
Last October I paid for a 3 hour session (on a 3 for 2 basis) at a
tanning centre before going on holiday at Christmas to avoid getting burnt
as soon as I arrived. I used up nearly all the time towards the end of
November so I paid for another 3 hours on the same 3 for 2 basis. Both
purchases on a Lloyds TSB Visa card. Within a couple of days of the extended
purchase the business closed and I could therefore not make use of the time
paid for.
When I got my card statement with the second purchase I wrote to Lloyds
TSB to get the payment credited back. They have investigated this and
because another part of the franchised group had voluntarily taken over the
unused time they would not pay up. I explained that I specifically bought
the session for use before Christmas and the new salon was in another town
and not practical to get to. LTSB asked whether I could claim the money back
from the second salon but I pointed out that this was a franchise and
therefore nothing to do with them, ie they had got no money out of the deal,
it was merely an act of good will.
LTSB said that they would refer this back to Visa and they came back
today and said that as the business had been taken over they would not
refund the money. I pointed out that the business that I had bought the time
from had closed and had not been taken over and that I could not use the
alternative salon who were providing the service as good will, not that I
felt I was obliged to anyway.
They have now said that if I complete some form that they will send me
they will go back to Visa again.
Where do I stand here? The business that I bought the service from has
closed, I bought the service on my credit card surely I should get my money
refunded.What peeves me is that this in only about £60 and I must put about
£12000 a year through Visa.
This discussion illustrates why I pay monthly for auto insurance! Even
though it cost slightly more than if I pay in one lump sum annually.
Some years ago an insurance broker (i.e. someone, who like a franchisee
retails a service to customers) went out of business rather dramatically.
One of the products that this particular company had offered was a lower
rate for payment 'up front'. The bankruptcy happened shortly after at a time
of year when many people annually renew their insurance. It was never
alleged or proven that the timing had anything to do with the 'going out of
business', but due to other factors in the case including the virtual
'disappearance' of the principle to other parts of the world etc. it made
people suspicious!
Several people I know got burnt; and even though some other insurance
companies stepped in and offered reasonable opportunities for reinsurance
(gaining customers also of course) the insured basically had to pay all over
gain.
If my insurance broker or any of his parent companies went out of business I
would only be one month's premium out of pocket!
From what the OP describes it sounds as though the only recourse would be to
sue the original franchisee i.e. to become a creditor of their going out of
business?