Section 75 Claims

As a nation of shoppers we love to splash out on credit cards

When managed properly, a credit card can be a fantastic financial asset as it not only allows you to purchase now and pay later, but also affords you extra protection

Section 75 of the Consumer Credit Act 1974 is one such form of protection and can help you claim back £££

£97.8 billion was spend on credit cards in the first quarter of 2014 alone from 2.2 billion transactions

 

Need to know

  • What is Section 75?
  • Section 75 is a clause in the Consumer Credit Act which protects consumers by making a credit supplier equally liable as a seller in the event of a dispute
  • You don’t have to have paid the full amount on your credit card. For instance if you paid for a deposit on a car for £1000 on your credit card, then paid another £9000 with a cheque, you would still be covered for the entire £10,000 if say, the company went into liquidation
  • Cash withdrawn using a credit card is not covered by Section 75 (it’s generally not a good idea to do this anyway because of the high charges)
  • Should your card company decline your claim under Section 75, you can write to the Financial Ombudsman Service (FOS)
 

Section 75 and Chargeback

Along with Section 75 you are also covered on some credit cards by chargeback. This applies to Visa, MasterCard and Amex credit cards, all UK debit cards and charge cards

Similar to Section 75, you can apply to the card supplier for a refund. There’s a 120 day limit for chargeback claims starting from the day you were first aware of the problem

Chargeback isn’t covered by law unlike S75 and each card supplier has slightly different rules so be sure to check your bank’s terms and conditions

 

Reasons to make a Section 75 claim

  • You purchased a product or service on your credit card over the value of £100 but less than £30,000
  • There was a problem with the sale, a breach of contract, fault, or the product was mis-sold
  • The company you paid has gone out of business
  • You are in dispute with the seller about the terms of contract or sale
 

How to make a Section 75 claim

  • While your credit card company does share liability, it’s generally quicker to complain to the supplier first
  • If the supplier disagrees with your claim, then it’s time to get in touch with your credit provider
  • Credit card providers have their own procedures for making a Section 75 claim, so be sure to check with yours to find out how to take action
  • Gather any evidence you might have to help support your claim. This could include the contract, evidence of correspondence, receipts, invoices or anything similar
  • If you still can’t find an amicable resolution, you can have the FOS investigate
 

The inside track

  • Remember the deposit tip. Pay for a deposit for anything on your card and you will still be covered for the full amount!
  • It is possible to claim for goods over £30,000 under Section 75a. This limit for 75a is £60,260
  • Under Section75a there must be a clear relationship between the debtor and the creditor, so be sure to check up on the specifics
  • Under Section 75 you are also protected for goods and services purchased while abroad or ordered from abroad
  • Additionally you may be able to claim for ‘consequential losses’ for any financial hardship incurred as a result of the problem
  • Debit cards, gift cards and charge cards do not count under Section 75
 
 

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