Martin Lewis shares advice for Smile Direct Club customers after firm collapses
Martin Lewis shared a bit of advice for Smile Direct Club customers after the firm stopped trading this week.
Smile Direct is an orthodontics company which sells clear aligners that can straighten your teeth which can be done at home rather than at the dentist. However this week the company announced that it has made the "incredibly difficult decision" to wind down its global operations.
The firm - based in the US - filed for bankruptcy in September this year as it had debts of around $900million (£717million). Brits who have placed orders for their aligners but have not received them will their their order cancelled. However, many other customers have been left in the dark about what their rights are.
The MoneySavingExpert.com (MSE) founder mentioned the issue last night on the final Martin Lewis Money Show of the year. Martin was explaining consumer rights under Section 75 to viewers and mentioned how this could potentially help those affected by the collapse of Smile Direct.
Section 75 sees the lender equally liable as the retailer if something goes wrong. Under the rule, you are covered if you buy something costing over £100 and less than £30,000 - even if you only put one penny on the credit card.
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Martin explained: "One of the benefits of paying on plastic is you get more protection than any other form of payment. So if you buy items costing over £100 up to £30,000, put at least a penny of it on the credit card as then the credit card company is jointly liable with the retailer for the entire amount.
"So... spend £29,999 and put a penny on the credit card and it's reasonable for the £29,999. What that means, interestingly, is not just if you don't get the product but you have exactly the same consumer rights as you do with the company.
"So for example, the the aligners company that's just gone bust Smile Direct. If you're with that and you then have a fault on your product. You can't go back to the company if you paid on the credit card, you could use Section 75 to get it to put your consumer rights in place."
Martin also referenced the "less but still important" chargeback protection. This one isn't law but it is a but an American Express, Visa or MasterCard rule. Under this rule if you don't get something you paid for by credit, debit or charge card and the firm is refusing to refund you, you can ask your bank to "reverse the transaction" and get your money back through chargeback.
Martin said: "So if you haven't had delivery or something isn't working you can go to your credit your debit card company and say I want the money back because they haven't delivered what they promised. It's not a law, it's an AmEx, Visa or MasterCard rule but that's also part of why plastic is so powerful."
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