Section 75 Refused: Why Your Credit Card Won't Cover You

Your Section 75 claim has been refused: what happened

You paid by credit card. Something went wrong with your purchase. You submitted a claim to your card provider expecting protection under Section 75 of the Consumer Credit Act 1974. The letter or email you received says your claim has been declined.

This is frustrating, particularly when you believed you were covered. But Section 75 has strict rules, and card providers refuse claims for specific reasons. Knowing why yours was rejected is the first step toward working out whether they got it wrong or whether you need a different route.

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Common reasons Section 75 claims are refused

The most frequent ground for refusal involves the price limits. Section 75 only applies when a single item costs between £100 and £30,000, including any delivery or service charges that form part of the purchase price. If you bought something for £95, you are outside the threshold. The same applies if the total cash price of the item falls outside these limits. However, if the item's total price falls within the range, even a small partial payment by credit card can trigger protection: pay a £50 deposit on a £500 item, and the full purchase is covered.

The second common refusal involves how the payment reached the supplier. Section 75 requires a direct debtor, creditor, supplier relationship. When you pay through an intermediary such as PayPal or a buy now pay later service, the card provider may argue the chain is broken because your card paid the intermediary, not the supplier. Financial Ombudsman Service decisions on this point vary depending on the specific payment arrangement and whether the intermediary acted as agent or principal. The FOS publishes its decision database online, where you can search for cases involving similar payment structures.

If you are an additional cardholder rather than the primary account holder, your claim may be refused. Section 75 protection applies to the debtor on the credit agreement. Additional cardholders are not party to the credit agreement itself.

Business purchases are another exclusion. If you bought goods or services for commercial purposes rather than personal use, Section 75 does not apply. However, sole traders who purchase items primarily for personal use may still qualify. Your card provider may ask how the item was used, so be prepared to explain if the purchase had a personal purpose.

Claims must also be brought within six years in England and Wales, or five years in Scotland. If you are outside this window, the limitation period has expired.

Finally, Section 75 only covers breach of contract or misrepresentation by the supplier. Changing your mind, finding the item cheaper elsewhere, or general dissatisfaction does not create a valid claim. You need to show the goods were faulty, not as described, never delivered, or that the supplier made false statements that induced you to buy.

Your situation may be slightly different. ask a question below ↓ and our editorial team will reply with our advice.

What you can do now

Request the card provider's final response letter if you do not already have it. This document sets out their position and confirms you can take the complaint further.

If you believe the refusal is wrong, escalate to the Financial Ombudsman Service. You have six months from the date of the final response to do this. The FOS can review the evidence and make a binding decision against the card provider. There is no fee. Submit your complaint through the FOS website, where you can upload supporting documents directly.

If the FOS does not resolve the issue in your favour, you can pursue the matter through the county court. This involves issuing a claim against the card provider for the amount owed. Court fees apply and depend on the value of your claim. Consider whether the amount justifies the cost and time involved.

While pursuing the Section 75 dispute, request a chargeback. This is a separate card scheme process, not a legal right, but it can recover money when Section 75 does not apply. Chargeback has shorter time limits, typically 120 days from the transaction or from when you became aware of the problem. Ask your card provider about this in parallel.

Gather all documentation: receipts, order confirmations, correspondence with the supplier, photographs of faulty goods, delivery records. The more evidence you have of breach or misrepresentation, the stronger your case.

If the retailer has gone into administration

Section 75 becomes particularly valuable when a supplier has collapsed. You can claim against your card provider even if the retailer no longer exists. If your claim was refused on other grounds, pursue the FOS route regardless of the supplier's status.

You may also register as a creditor with the administrator. The administrator's details are published on the Companies House website and in the London Gazette. Submit a proof of debt form, available from the administrator's appointed insolvency practitioner, before the deadline stated in the creditor notice. Recovery through insolvency proceedings is typically minimal, but registration preserves your place in any distribution.

For current guidance on your rights and the complaints process, see GOV.UK, the FCA website and the Financial Ombudsman Service.

The Next Step

Now that you have read through the advice above, you might want to put it into practice. Our Credit Card Section 75 Checker lets you check if your credit card company owes you a refund under Section 75. Takes 1 minute. Try it now →