Section 75: Claiming Back Money from Your Card Provider
Section 75 of the Consumer Credit Act 1974 can make your credit card provider jointly and severally liable with the seller for misrepresentation or breach of contract. It applies when the cash price of a single item is more than £100 and not more than £30,000, even if you only paid part of the cost on the card, such as a holiday deposit.
It is separate from deposit protection under FSCS and from moving your current account with the Current Account Switch Service. More guides are in the credit hub.
What section 75 says
Legislation.gov.uk sets out that, for a claim against a supplier for misrepresentation or breach of contract, the creditor (your card provider) is jointly and severally liable with the supplier.
In other words, if you have a claim against the seller for misrepresentation or breach of contract, you have a like claim against your card provider.
Price limits
The Financial Ombudsman Service says it is the cash price of the goods or services that matters, not the amount you paid on the card.
The item must cost more than £100 and not more than £30,000.
Section 75 can still apply when you only pay part of the price by credit card. MoneyHelper’s example is paying the deposit for a holiday on your card.
The £100 threshold applies per item or set of items, not to your whole bill. MoneyHelper notes that a dress and jacket each costing £100 or less would not qualify separately, whereas a family ticket sold as one package may count as a single item.
When it does not apply
According to the Financial Ombudsman Service, section 75 does not apply if you paid by debit card or charge card, with credit under an overdraft or a general-purpose bank loan, or by cash, credit card cheque or bank transfer.
It can apply to some point-of-sale loans and certain catalogue accounts, according to the Financial Ombudsman Service.
There must be a debtor-creditor-supplier agreement. The Financial Ombudsman Service says how you paid, and the parties involved, may affect a claim.
How to claim
MoneyHelper recommends a practical order of steps:
- Contact the seller first and try to resolve the problem.
- If that fails, or the seller has disappeared or entered liquidation, write to your card provider.
- Include what you bought, where and when, how much you paid, and proof of purchase.
- Explain what you have already tried with the seller and ask for a refund.
- State clearly: ‘I am making a claim under section 75 of the Consumer Credit Act.’
- Keep a copy of your letter and any replies.
Chargeback for debit cards
If you paid with a debit card, section 75 does not apply. You may instead be able to use chargeback, a voluntary scheme run through your card provider.
Time limits and complaints
If you are unhappy with how your lender handles a section 75 claim, follow its complaints procedure first.
You can then refer the dispute to the Financial Ombudsman Service if you remain dissatisfied.
Frequently asked questions
Does the price limit apply to what I put on the card?
No. The cash price of the item matters. A single item must cost more than £100 and not more than £30,000, even if you only pay a deposit by credit card.
Can I claim if I used a debit card?
Section 75 does not cover debit cards. You may be able to use chargeback, a separate voluntary scheme through your card provider.
What problems does section 75 cover?
It applies to claims for breach of contract or misrepresentation against the supplier. The creditor is jointly and severally liable with the supplier.
What should I include in a claim letter?
State what you bought, where and when, how much you paid, enclose proof of purchase, explain what you tried with the seller, and say you are claiming under section 75 of the Consumer Credit Act.
What if my card provider refuses help?
You can complain to the provider and, if needed, take the dispute to the Financial Ombudsman Service.
Sources
Disclaimer: This article is general information and not personal financial, tax or legal advice. Check your own situation with HMRC, GOV.UK or a regulated adviser.