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Ask Jeremy Aldermartin Your Own Question
Jeremy Aldermartin
Jeremy Aldermartin, Solicitor
Category: Law
Satisfied Customers: 12221
Experience:  Dual qualified Solicitor and Attorney
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I am contacting you in regards to a situation I have. Shall

Customer Question

Hello! My name is***** am contacting you in regards ***** ***** situation I have. Shall I describe it now?
JA: Where are you? It matters because laws vary by location.
Customer: UK, Maidenhead
JA: What steps have you taken so far?
Customer: contacted Ombudsman
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: not sure
Submitted: 12 days ago.
Category: Law
Expert:  Jeremy Aldermartin replied 12 days ago.

How can I help?

Customer: replied 12 days ago.
hello. my name is***** and I am contacting you to ask for an advice. I was victim of a scam, with a trading platform who was shut down and ran away with the money. I have purchased Bitcoin and transferred them to the platform in order to trade and then the platform was shut down and money lost. I have used my credit card to purchase BTC and after the scam, within 6 months, I have filled a complaint to the bank under Section 75 as I was not delivered what was promised in the contract I had with the platform. I was rejected, I have asked for Ombudsman to sort this matter out, and he told me that the DCS chain is broken : "I have considered whether your payments attracted any section 75 rights. Having done so, I am not satisfied they did. I say this because one of the requirements for a section 75 claim is that there is a debtor-creditor-supplier (“DCS”) agreement falling under section 12(b) or 12(c) of the 1974 Act. If this is requirement is not met, any section 75 claim fails."
Customer: replied 12 days ago.
Could you please advise if this is indeed broken, as he told me that I need to go to the crypto exchange office and discuss with them. I have done so, but I was refused, as they have explained that the money/crypto was transferred to the platform and they could not do anything.
Expert:  Jeremy Aldermartin replied 12 days ago.

You cannot claim under s75 for cryptocurrency purchases, this is not a supplier type service it is an investment you invested in cyrpto and then transferred it of your own accord. You got what you paid for with your credit card i.e. the crypto it was then up to you what you did with it. I trust this assists

Customer: replied 12 days ago.
ok, but the platform asked me to transfer crypto, I could not pay with money directly. does this fall under Section 75?
Customer: replied 12 days ago.
I have verified Consumer Credit Act, Section 75 and it does not state anywhere that crypto currencies do not fall under this section
Expert:  Jeremy Aldermartin replied 12 days ago.

No not at all. It was as you said a scam but that is not the fault of the credit card company. You got what you paid for which was the crypto. The credit card was used to buy the crypto. There is no link between the credit card company and the end entity. I trust this assists

Customer: replied 12 days ago.
Thank you very much for your prompt answer! I still do not understand, if the platform obliged me to use crypto - which is the money I have used to purchase the goods/services, why I cannot claim under Section 75 ? It is not specified in this section that Cryptos are not money
Expert:  Jeremy Aldermartin replied 12 days ago.

Yes but just to be clear you used your credit card to buy the crypto and then you transferred the crypto to the platform correct?

Customer: replied 12 days ago.
this was the procedure to enter the platform. They did required crypto, which they did not sell. They were selling/providing access to tradingfloor, using crypto
Expert:  Jeremy Aldermartin replied 12 days ago.

Yes exactly so to be clear the process was as follows:

Step 1. You bought crypto using your credit card

Step 2. You got crypto

Step 3. You then transferred the crypto to Platform A

Step 4. Platform A is a scam

Is that correct?

Customer: replied 12 days ago.
Platform A required crypto to be accessed and they were not selling crypto, hence I had to go to an exchange
Expert:  Jeremy Aldermartin replied 12 days ago.

Yes so as far as the credit card provider is concerned you got what you paid for using your credit card because what you paid with the card for was the crypto. So no s.75 claim is valid because you got what you used the credit card to buy. I trust this assists

Customer: replied 12 days ago.
ok. it is a funny coincidence, I have just googled your name and noticed that you are working for Santander also, and I am having this dispute with the bank. at the begining I thought that they are suspecting me of frauding them, like I purchase crypto, build a platform and then claim under S75, so that when I get refunded I actually get the crypto for free. I have explained them that the amount I have invested was more than my credit card limit 12000 pounds. They have charged around 360 pounds a month as interest, as they told me that I actually used my card to withdraw money (they did not consider crypto an asset). I have paid that amount for more than 1.5 years. During this time I have asked them to transform this credit card amount into a credit, as I have paid a lot of money and I still owe them 12000 pounds (basically they expect me to pay 350 pounds monthly until end of my life). So what I dont understand is why, given the answer I received from them - and paying interest - I am still getting this answer that I have bought crypto - when actually they told me that I need to pay the highest interest rate as I have withdraw my money and did not make a purchase
Customer: replied 12 days ago.
During this time I went out of job, but still continued to pay interest and now I wanted to finish this story - ask them for a refund and transfer that refund directly to my credit card to cover the credit - no monkey business. I am a serious person!
Expert:  Jeremy Aldermartin replied 12 days ago.

I do not work for Santander and have never worked for them so do not know where you got that from. You did make a purchase you bought crypto and you used your credit card to pay for it and you got it. I trust this assists

Customer: replied 12 days ago.
here is the link with a photo of you on Santander website: https://www.bancosantander.es/en/particulares/banca-digital/apps/justicia
Customer: replied 12 days ago.
considering my situation, if I get a Debt Relief Order, will I be exempt from the debt ?
Expert:  Jeremy Aldermartin replied 12 days ago.

Not sure where they got that from but I do not work for Santander.

To be eligible for a DRO, you must meet these criteria:

  • you owe £30,000 or less
  • you have less than £75 to spend each month, after paying tax, national insurance and normal household expenses
  • you’ve lived or worked in England or Wales in the last 3 years
  • your assets aren’t worth more than £2,000 in total
  • you’ve not had a DRO in the last 6 years

You won’t be eligible if you are involved in bankruptcy proceedings or any other formal insolvency procedure. Do you meet that criteria?

Customer: replied 12 days ago.
I meet the criteria. If I am getting that, should I pay them back any money?
Expert:  Jeremy Aldermartin replied 12 days ago.

No instead apply for the DRO. I trust this assists

Customer: replied 12 days ago.
ok. Thank you! I awaiting for Stepchange to provide me with the document and present it to the bank. I should have it by 15 August
Expert:  Jeremy Aldermartin replied 12 days ago.

Ok, take care