If you have ever paid for something with a credit card and things did not go to plan, you may have heard the phrase “Section 75.” But what exactly does it mean, and how can it help you?
Section 75 of the Consumer Credit Act 1974 offers important protection when you use your credit card to buy goods or services costing between £100 and £30,000.
If something goes wrong, the credit card company is jointly liable with the retailer. This means you are not left relying solely on the shop or service provider to put things right.
You may be able to make a claim if an item never arrives, if the company goes out of business before providing what you paid for, or if the goods are faulty, misrepresented, or not as described.
Services such as holidays or events that are cancelled can also fall under Section 75.
You might want to try contacting the retailer as your first port of call, as they may resolve the issue directly.
If that does not work, or if the retailer has gone bust, write to your credit card provider and explain what you bought, what went wrong, and that you wish to make a claim under Section 75 of the Consumer Credit Act. Supporting evidence such as receipts, contracts, or correspondence will strengthen your case.
There are some common misunderstandings. Section 75 does not apply to debit card purchases, although those may sometimes be covered by a separate process called chargeback.
You also do not need to have paid the full amount on your credit card for the protection to apply, even a deposit or part payment over the £100 minimum threshold is enough.
The protection can also apply to overseas purchases, provided the company involved is UK-based.
Section 75 is one of the strongest consumer protections available in the UK and is worth remembering whenever you make a significant purchase.