Section 75: How Your Credit Card Protects You

Section 75 of the Consumer Credit Act 1974 is probably the most powerful consumer protection that most people have never heard of. In simple terms, if you buy something costing between £100 and £30,000 on a credit card and the seller lets you down, your credit card company is equally liable. They have to put it right, even if the seller has gone bust, disappeared, or is refusing to cooperate.

What It Covers

It covers any breach of contract or misrepresentation by the seller. The goods are faulty. The service was not provided. The item was not as described. The company went into administration before delivering. The holiday was cancelled but the travel agent will not refund you. All of these are covered.

The item itself does not have to cost over £100. It is the total transaction that counts. So if you buy a £80 item and pay £25 delivery, the total is £105 and Section 75 applies. However, each individual item in a multi-item order needs to be over £100 on its own for that specific item to be covered.

How to Claim

Write to your credit card company. You can usually do this through their website or app. Explain what you bought, what went wrong, and what the seller has or has not done about it. Include evidence: receipts, order confirmations, correspondence with the seller, photographs of faulty items.

The credit card company has eight weeks to respond to your claim. In practice, straightforward claims are often resolved faster. If they reject your claim and you disagree, you can escalate it to the Financial Ombudsman Service for free.

Section 75 vs Chargeback

People often confuse Section 75 with chargeback, but they are different things. Section 75 is a legal right that only applies to credit cards for transactions between £100 and £30,000. Chargeback is a scheme run by the card networks (Visa, Mastercard) that applies to both credit and debit cards for any amount, but it is not a legal right, it is a voluntary process.

Use Section 75 when you can because it is stronger. Fall back on chargeback for debit card purchases or credit card purchases under £100.

Common Mistakes

You do not need to have paid the full amount on the credit card. Even paying a deposit of £1 on the credit card, with the rest on debit card or cash, triggers Section 75 protection for the whole transaction. You do not need to have pursued the seller first, though it is good practice. And you do not need to have the credit card any more, the protection is tied to the transaction, not the card.

Always check the terms of your specific agreement, as individual contracts can vary. This article is for general guidance only and is not legal advice.