Section 75 is a vital consumer protection found within the Consumer Credit Act 1974, rather than a standalone "Credit Card Act." This powerful provision makes your credit card provider equally liable with the retailer or supplier if something goes wrong with goods or services purchased using your credit card.
Understanding Section 75 Protection
Section 75 of the Consumer Credit Act 1974 offers a significant layer of legal protection for certain purchases made with a credit card. It means that if there's a problem with an item or service you've bought, such as it being faulty, misrepresented, or not delivered, your credit card company could be jointly responsible alongside the seller or service provider. This protection exists even if the retailer has gone out of business, providing a crucial safety net for consumers.
How Section 75 Works
This legal provision creates a direct link between you, the credit card company, and the retailer. Should a dispute arise, you have the right to claim against your credit card provider, not just the retailer. This is particularly beneficial in situations where:
- The retailer refuses to resolve the issue.
- The retailer has ceased trading.
- You've had to pay for a repair or replacement yourself due to a faulty item.
Key Eligibility Criteria
To be eligible for Section 75 protection, specific conditions typically apply:
- Purchase Value: The cash price of the single item or service must be between £100 and £30,000.
- Note: If the item costs less than £100 but you paid a deposit with your credit card and the total cost is over £100, you might still be covered for the full amount. For example, paying a £50 deposit with your credit card on a £500 holiday could trigger protection for the entire £500 cost.
- Direct Relationship: There must be a direct relationship between the credit card company and the supplier of the goods or services. This means your credit card company must have directly financed the purchase.
- Goods or Services: The protection covers a wide range of goods and services, including most consumer purchases.
Examples of Covered Situations
| Scenario | Section 75 Protection Applies? | Explanation |
|---|---|---|
| Faulty electronics (e.g., a new TV) | Yes | If a TV purchased for £500 on a credit card breaks down prematurely and the retailer refuses to repair or replace it, your credit card provider can be held liable. |
| Undelivered goods (e.g., online furniture) | Yes | You order furniture online for £1,000, pay by credit card, but it never arrives. You can claim against the credit card company, even if the retailer has stopped trading. |
| Holiday company goes bust | Yes | If you book a holiday for £2,500 using your credit card and the travel company ceases trading before your trip, you can seek a refund from your credit card provider. |
| Misrepresented services (e.g., a course) | Yes | You pay £200 for a course that was advertised as providing certain qualifications, but it turns out to be unaccredited or not as described, significantly impacting its value. You may have a claim. |
| Purchases under £100 | No (generally) | Unless a deposit of £100 or more was paid by card, and the total value exceeds £100. For purchases solely under £100, other protections like chargeback may be available through your card scheme (e.g., Visa, Mastercard), which is distinct from Section 75 and usually has different rules and time limits. |
Making a Section 75 Claim
If you believe you have a valid claim under Section 75, follow these practical steps:
- Contact the Retailer First: Always attempt to resolve the issue directly with the retailer or supplier. This is often the quickest way to find a resolution.
- Gather Evidence: Collect all relevant documentation, including receipts, invoices, order confirmations, correspondence with the retailer, and any evidence of the fault, damage, or non-delivery (e.g., photos, emails, repair quotes).
- Contact Your Credit Card Provider: If the retailer is unresponsive, uncooperative, or has ceased trading, contact your credit card company. Explain the situation clearly, provide your gathered evidence, and explicitly state that you wish to make a claim under Section 75 of the Consumer Credit Act 1974.
- Be Persistent: Credit card companies will investigate your claim. This process can take time, and they may request further information or documentation. Respond promptly to their requests.
Section 75 vs. Chargeback
It's important to understand the difference between Section 75 and a "chargeback," as they are often confused but operate differently:
- Section 75: This is a legal right under the Consumer Credit Act 1974. The credit card company is equally and jointly liable for breaches of contract or misrepresentation by the retailer, meaning you can pursue them directly. It applies specifically to credit card purchases within the £100-£30,000 range.
- Chargeback: This is a scheme offered by card providers (such as Visa, Mastercard, American Express) and is not a legal right. It allows your bank to reverse a transaction under certain circumstances (e.g., fraud, goods not received, services not rendered). Chargeback typically has stricter time limits (often 120 days from the transaction or when you became aware of the issue) and can apply to both debit card and credit card purchases.
Why Section 75 is Powerful
Section 75 provides robust protection because it makes the credit card provider jointly liable for issues, not just the retailer. This means you have two avenues for recourse, significantly increasing your chances of compensation, especially when dealing with insolvent or uncooperative businesses. It offers peace of mind for larger purchases, ensuring you're not left out of pocket if things go wrong.
