Fortunately, UK consumers have certain protections in place, including Section 75 of the Consumer Rights Act 2015.

Advertisment

Section 75 provides a safety net for consumers who make purchases of between £100 and £30,000 using a credit card. Under Section 75, the credit card company is jointly and severally liable with the retailer for any breach of contract or misrepresentation. This means that if the goods or services you have purchased are faulty, not as described, or not delivered at all, you can claim a refund from either the retailer or the credit card company.

To make a claim under Section 75, you must first attempt to resolve the issue with the retailer directly. If you are unable to reach a satisfactory resolution with the retailer, you can then make a claim with your credit card company. You should provide evidence of your purchase, such as a receipt or order confirmation.

WHAT IS SECTION 75?

Section 75 is a consumer protection law in the United Kingdom that provides protection for consumers who use their credit card to make purchases. Under this law, the credit card issuer is jointly liable with the retailer for any breaches of contract or misrepresentations made by the retailer. This means that if a consumer purchases goods or services using their credit card and the retailer fails to deliver or provides goods or services that are defective, the consumer can seek redress from the credit card issuer as well as the retailer.

Section 75 applies to credit card purchases where the value of the goods or services is between £100 and £30,000. The law covers a wide range of purchases, including holidays, car purchases, and home improvements, as well as online purchases.

What does Section 75 cover?

To make a claim under Section 75, your case needs to come within the branches of one of a couple of scenarios which you are protected under. You will be protected by Section 75 if there has been a breach of contract between you and the retailer whom you have bought off. For instance, if the product was not of the quality that you expected, or if you never received the product that you have paid for. You can also make a claim if the product that you bought was misrepresented to you at the time of purchase.

For instance, if the information on the product description differs from the product itself on arrival or the product does not fulfil the activities that it was stated to online or in store. This means that you do not have to be concerned if the product that you have bought arrives faulty or damaged and the retailer refuses to refund you for the item. In all scenarios, the products must have cost between £100 and £30,000.

Section 75 applies to credit card purchases where the value of the goods or services is between £100 and £30,000. This law covers a wide range of purchases, including:

1. Goods - such as appliances, furniture, and electronics.

2. Services - such as home improvements, car repairs, and holiday bookings.

3. Travel - such as flights, hotels, and car rentals.

4. Digital goods - such as software, music downloads, and e-books.

It's important to note that Section 75 only applies to the primary cardholder, not to secondary cardholders or purchases made through intermediaries such as travel agents. Additionally, Section 75 only covers purchases made in the UK or from a UK-based company, even if the purchase is made overseas.

Advertisment

How do make a Section 75 claim?

The law makes clear that both retailer and credit card company are jointly responsible for Section 75 claims.
To get a Section 75 refund, you should follow these steps:

1. Contact the retailer: If you have an issue with the goods or services purchased using your credit card, the first step is to contact the retailer to try to resolve the issue directly.

2. Contact the credit card issuer: If you are unable to resolve the issue with the retailer, contact your credit card issuer. You should explain the problem and provide any relevant documentation, such as receipts or invoices.

3. Make a formal complaint: If your credit card issuer is unable to resolve the issue, you should make a formal complaint in writing. You should include all relevant details and documentation and explain why you believe you are entitled to a Section 75 refund.

4. Wait for a response: Your credit card issuer will investigate your complaint and respond to you in writing. If they agree that you are entitled to a refund under Section 75, they will arrange for the refund to be paid to your credit card account.

It's important to note that you must make your Section 75 claim within six years of the date of purchase. Additionally, if you paid only part of the purchase price with your credit card (for example, if you used multiple payment methods), you may only be able to claim for the portion of the purchase price that was paid with

There is a range of information which you must give to your credit card company before you can claim, and this includes details of any contact with the retailer, the date and product which you bought, the cost, and what was wrong with the product that made you look for a refund. You can often complete these Section 75 claims both online and by post, with both methods being equally valid in order to get your money back.

WHAT DOES SECTION 75 PROTECT?

Section 75 protects any purchase made on your credit card that cost between £100 and £30,000. This much be the cost of the product that you are refunding on its own, rather than the total cost of your purchase, and this does not include postage and package or any other extra costs that you may have incurred.

However, the law also covers any costs that you incurred due to the issue, such as the postage or travel costs that you may have been liable to in seeking a refund. If you have left a deposit, you will be able to claim for the whole cost of the item in question if it is over £100, regardless of how much of this amount you paid.

Additionally, Section 75 also covers finance repayments and other instalment based purchases that you may make, such as retail credit repayment. If you want cover for an item over the cost of £30,000, there are some instances when you can claim after you have made contact with the seller, but you must prove that this money is directly linked to the product, such as a written contract.

Section 75 protects consumers in the following ways:

1. Faulty goods: If you purchase goods using your credit card that are faulty, defective or not as described, Section 75 allows you to claim a refund from your credit card issuer.

2. Non-delivery of goods: If you purchase goods using your credit card that are not delivered, Section 75 allows you to claim a refund from your credit card issuer.

3. Misrepresentation: If you purchase goods or services using your credit card and the retailer misrepresents them, such as by making false claims or statements, Section 75 allows you to claim a refund from your credit card issuer.

4. Breach of contract: If the retailer breaches the terms of the contract, such as failing to deliver the goods or services as agreed, Section 75 allows you to claim a refund from your credit card issuer.

It's worth noting that Section 75 only applies to credit card purchases where the value of the goods or services is between £100 and £30,000, and only to purchases made in the UK or from a UK-based company, even if the purchase is made overseas. Additionally, it does not cover purchases made by secondary cardholders or purchases made through intermediaries such as travel agents.

Advertisment

WHAT HAPPENS IF YOU PAY BY AN ALTERNATIVE PAYMENT METHOD?

Although this article so far has only covered your rights if you pay by credit card, there are solutions to issues you may have when you pay by debit card or Paypal. If you pay by debit card, although you will not be protected by Section 75, it could be possible that you will be able to claim your money through Chargeback. Chargeback can be used for both credit and debit cards and allows you to request that a transaction is reversed, with the bank taking the money from the retailer and putting the original amount back into your account. Chargeback is especially useful if there has been miscommunication or your items are damaged by the time that they arrive. In terms of Paypal, although having a third party involved may reduce your rights, you can still get your money back. If the retailer has a Commercial Entity Agreement with Paypal, then you can still use Section 75 to get your money back and recover your losses.

However, Paypal and other third parties often run their own protection schemes which can help you to receive your money from refunds if products are not as expected, and can protect you against fraud and theft.

DOES IT COVER SECONDARY CREDIT CARDS?

If you have a joint account which multiple persons withdraw from, such as a partner, and secondary cards which you can use, this process becomes slightly more complicated. If you are an additional cardholder, you may not have the same monetary protection for your purchases as the main cardholder, and so you should make sure that they are the ones that use your card to buy expensive purchases. As a secondary cardholder, although you will usually be protected, only through the main cardholder making the purchase will you be sure of protection.

WHAT HAPPENS IF YOU WITHDRAW CASH?

Although withdrawing cash may seem like a simple option to make purchases quickly and easily, if you withdraw cash from your bank account and then use this to make a purchase, you will not be covered at all by Section 75. This is because it cannot be evidenced that you used the money that you withdrew to pay for the purchase, and there will be no legal binding between the retailer, yourself, and the credit card company. If you are making an extensive purchase that needs to be protected, it is vital that you pay using your credit rather than in cash, which is less easy to track once you had made a purchase.

HOW DO YOU FIND THE RIGHT CREDIT CARD?

When looking for a new credit card provider, there are a number of basic aspects which you will be looking at to make your decision. These include the interest rates that you will receive immediately and in the future, the potential cash back that you can get, any additional fees, and the repayment rates to decide whether these are the right options for you. However, when looking for financial protection, all credit card providers have to adhere to the law in terms of Section 75, and you will be able to receive your cash back in a refund from all major credit card suppliers. However, some credit card companies will offer more protection than others under various schemes. To find out what each company offers, you should speak to an advisor or use a credit card comparison service to find the company that best suits your needs and offers you the kind of protection that you are looking for before you are able to make a decision.

When paying on your credit card, you will be protected more than using other payment methods such as debit card and cash and so paying by credit card is always advantageous. However, before making a claim or purchasing a large item, you should consider the impact of this and whether you are fully protected under Section 75 before you make the final transaction. From how much money you are spending to the terms of your payment, there are many factors that could affect your financial protection and which you must take into consideration to be successful in making a Section 75 claim if you need it.