I'm amazed this hasn't become illegal yet. It's effectively bypassing consumer protections by passing the buck onto the customer because they didn't pay the vendor directly.
I'm sorry but if you want to operate a platform where you act as an agent for vendors and take payments on their behalf, then you should be held accountable if the vendor doesn't deliver on their contractual obligations.
Be careful what you wish for - its likely that any changes in the legislation (Consumer Credit Act 1974) will result in a higher threshold for Section 75 claims & would close some loopholes like paying £101 on credit card & the rest by some other method. Banks have been lobbying for that change forever & looked at fairly its hard to see why they should be on the hook for the entire amount when they only extended £101 credit in the first place.
Some things are best left alone, and Section 75 of the Consumer Credit Act is one of them - there's no way we'd end up with the same rights we have now (which are incredibly generous IMHO).
