Section 75 – how it protects your credit card purchases

Section 75 of the Consumer Credit Act protects you if you buy something on credit.

It's useful for larger purchases, making sure you stay protected. However, you must know how to use it, when and its limitations.

Below, we'll discuss the following:

• what is it?
• when can I use it?
• what does it cover?
• what doesn't it cover?
• what payment methods does it cover?
• how to claim it
• where to complain
• can it be reversed

What’s Section 75?

Section 75 is part of The Consumer Credit Act 1974.

It states that your credit card provider is as responsible as a retailer or trader if they breach a contract or misrepresent their services.

It offers a legal way to claim money back on a credit card. The law is in place to protect consumers.

When can I use Section 75?

You can use Section 75 if a company you’ve used has gone out of business or didn’t give you the product or service you wanted. 

This is particularly important with larger purchases.

What does Section 75 cover?

You'll be automatically protected if you purchase goods or services between £100 and £30,000. 

The law attempts to remove the risk of people ending up in debt from services they didn't get, which was faulty or not as described.

It covers purchases where some of it was used in cash, too. So, if you purchased something for £150, paid £50 in cash and £100 on a credit card, you're protected for the total amount.

It only covers credit purchases: credit cards, store cards or store credit.

Does Section 75 work abroad?

Yes.

It works for purchases made in foreign countries and goods you've imported from abroad.

What doesn’t it cover?

Payments without a direct link

There needs to be a link between your credit payment and the supplier. 

The main exception to this is PayPal, but your credit card company needs to have Commercial Entity Agreement with them. This is a legally binding contract that enables two companies to do business with each other. 

You can check if your credit card has an agreement by asking your provider.

Cash purchases from credit card withdrawals

You can't use Section 75 if you take out cash with your credit card and then spend that.

This is because part of the purchase must be bought with credit to be protected by the law.

Multiple purchases that total £100

It won't cover multiple purchases under £100 that cost more than £100 together.

So, if you bought a hotel stay for £99 and a train ticket for £80 and didn't receive the expected services, then Section 75 won't cover you for the entire trip.

Items under warranty

It doesn't apply to items under warranty. You'd claim the warranty from the supplier instead.

What payment methods are covered by Section 75?

As mentioned, only credit is covered by Section 75. 

It only applies to traditional credit cards like Visa and Barclaycard, store cards and in-store credit.
It doesn't cover charge cards like American Express. Payments via debit card aren't protected either.

How to claim it

We recommend trying to get a refund from the service provider first.

If that fails, you should:

• contact your bank for a Section 75 claims form
• tell your credit card company you want to claim using Section 75
• include as much information as possible about the purchase and services
• share as much evidence as possible, like receipts, communications (emails, letters, etc) and invoices

You can complain if you don't get a satisfactory outcome from a Section 75 claim.

Where can I complain if a company refuses my claim?

If you can't resolve your issue with your supplier or credit card company, contact The Financial Ombudsman Service.

They'll be able to assess your issue and recommend what your next stage should be.

Can a Section 75 claim be reversed?

Yes.

Section 75 states a retailer has 45 days to dispute a reversed transaction. They'll then have another 60 days to gather evidence.