Southern Rail customer uses credit card clause to get £2,400 refund for delays – could you do it too?
A FED up commuter who successfully claimed back thousands from his credit card provider after months of disrupted service by Southern Rail is encouraging other passengers to fight back against poor service.
The commuter, known only as "Sean", made a claim under Section 75 of the Consumer Credit Act, stating that Southern's dismal performance in recent months meant he was entitled to a 50 per cent refund on his ticket.
He contacted his credit card company, American Express, last August once his ticket had expired claiming that the rail operator had failed to deliver the service it had promised.
The payout could trigger a flood of similar claims from commuters who have paid for tickets with a credit card.
Under of the act, the credit card provider is equally liable with the firm that offers the goods or services if things go wrong.
The news was posted on the (ABC) website, a campaign group with a mission to pursue "justice, transparency and consumer rights for all users of UK transport."
"Sean", an annual season ticket holder, backed up his claim by providing statistics showing Southern's punctuality failure, estimating that 50 per cent of his train journeys had been cancelled or disrupted.
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In his correspondence to American Express, "Sean" said: "Most [Southern Rail] services run late - compensation in the form of rail vouchers (25 per cent of ticket) is only paid on 30 minutes or more and through laborious claims procedures.
"As of 11 July, Southern has cancelled 15 per cent of routes across its network across London.
"One in three of my daily trains are cancelled or delayed... strike action has also resulted in a loss of service."
Emily Yates, co-founder of ABC, told the organisation had already received an incredible response from its online community about the news.
She said several members are now pursuing claims from their credit card companies.
She criticised "Delay Repay", the national scheme train companies use to compensate passengers for delays, calling it "a lot of hassle for little reward".
Ms Yates said: "When one considers that any level of reasonable travel on Southern Rail has been impossible for the last 10 months, it is not surprising that so many people call this an insult to passengers or at best, an empty gesture."
Ms Yates added that since the news of "Sean's" success, "several" ABC members are now pursuing claims from their credit card companies.
How do I claim under Section 75?
First of all, you need to contact your credit card company - you can still do this even if the payment was made on an account which is now closed.
It is better to contact the company directly rather than Visa, Mastercard or Amex. So if you've got a HSBC Mastercard, you claim from HSBC, not Mastercard.
Use the words:
"I am making a claim under Section 75 of the Consumer Credit Act".
They should then send you a claim form - though it might not be quite that simple.
Sometimes the credit card company will ask you to get independent proof/evidence of a fault/poor performance. If the company asks for this, and then approves the claim, it should also reimburse you for costs incurred in getting the expert opinion. Most claims go ahead without this, but it's a possibility your lender will ask.
It would be worth doing some research and getting your evidence ready of delays and cancellations before you contact your credit card company as the amount you are asking for will depend on how badly your journey has been affected.
Credit card companies are bound under the Consumer Credit Act, meaning they are jointly liable for the provision of goods and services until they have been delivered.
So, if you have used your credit card to purchase any kind of ticket above £100, you might be able to benefit from this too under Section 75.
The only condition is that what you're buying must cost more than £100 and less than £30,000.
What is Section 75 of the Consumer Credit Act?
If you make a purchase on your credit card for goods or purchases that are faulty or have not been recieved, you can claim a refund - so long as the goods or services cost more than £100 and less than £30,000.
Customers are also protected under the same act if the goods or services were not as described, or they were sold on the basis of incorrect information.
If you bought a rail ticket for more than £100 on your credit card, then you're eligible to make a claim for at least some of your money back.
You will need to provide evidence to your card company that you have not received the goods or services that were included in the terms of sale.
If your card provider believes you have been reimbursed, either with a replacement product or other compensation, it will not provide a refund.
MoneySavingExpert.com founder Martin Lewis said that when you take a credit card company on, if it rejects you you have the right to go to the Financial Ombudsman (FOS).
The FOS adjudicates based on three things: the law; standard industry practice; and 'have you been treated fairly’.
Martin said: "By the very fact that one credit card company has agreed to pay out could open the floodgates because of that standard industry practice rule.
"The overarching rule here is that if you’ve got a Southern Rail season ticket and you’ve been badly affected by the disruption then you can try with Southern Rail, but equally you can try with you credit card company under Section 75."
Months of strikes on the Southern Rail network have caused travel misery for commuters. More than 300,000 people commute on Southern Rail each day.
The troubled operator manages 156 stations including London Victoria and London Bridge along 414 miles of track.
It is part of a franchise that stretches from Cambridge to Southampton, via Brighton.
Commuters take to social media on a daily basis to complain about the network's awful service.
How can I claim compensation for delays?
A new scheme launched last month, called Delay Repay 15, meaning that passengers can claim for compensation as long as disruption delays their arrival at their destination for more than 15 minutes.
Passengers delayed by 15 to 29 minutes get 25 per cent of the cost of a single fare, except when delays are caused by planned works.
Those delayed by 30 to 59 minutes are entitled to half the cost of a single journey, while those hit with delays of between an hour and two houses will be reimbursed the full cost of a single fare.
Anyone suffering more than two hours will be repaid the cost of their entire single journey.
The refunds should also be paid in cash rather than vouchers.
How much compensation will I get?
It depends, but season ticket holders will get the equivalent of a month’s (4 weeks) travel.
This means passengers with a Brighton to London annual season ticket, for example, will get £371 back.
While someone with a ticket from Horsham to London will get £326.
Quarterly, regular monthly and weekly season ticket holders will also qualify for a one off compensation payment.
Southern Rail will start contacting customers it believes qualify for a refund in January 2017.
It was revealed today that Southern Rail received a dismal customer score of just 21 per cent in Which?'s annual rail survey.
This is the company's worst performance ever - a far cry from the score of 44 per cent bagged last year.
Which? director of campaigns and communications, Vickie Sheriff, said: "After months of disruption, it's no surprise to see Southern at the bottom of our customer satisfaction survey.
"Though Southern have performed particularly badly this year, the whole sector is continually failing passengers.
"Overcrowding, delays, short trains, carriages in poor condition - many services aren't providing even the basics.
"Enough is enough - we need rail services that finally deliver for their passengers."
Have you made a successful claim under Section 75? Email [email protected] or call 0207 782 4368.