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How Section 75 can protect you - Video script

How Section 75 can protect you - Video script

Section 75 of the Consumer Credit Act can help when your credit card purchases go wrong

Jane Baker

Banking and Borrowing

Jane Baker
Updated on 19 July 2010

Section 75 of the Consumer Credit Act can help when your credit card purchases go wrong

It’s always a good idea to pay for goods and services using your credit card. If the supplier breaches the contract you have with them, you can actually claim costs back from your credit card company. This is because of valuable consumer protection under Section 75 of the Consumer Credit Act.

What is Section 75

Under Section 75, the supplier of your goods and your credit card company share liability jointly and severally. This means you can pursue either or both parties when things go wrong. Neither claim carries more weight than the other, so it's a good idea to pursue your credit card company first if the supplier has gone out of business. It may also be better to claim against the card issuer for overseas transactions.

When does Section 75 apply?

Section 75 applies where the price of a single item is at least £100, and no more than £30,000. You don’t even have to pay for the full purchase price using your card for the protection to be available. You could pay just £1 by credit card, and the rest by cash, and as long as it costs £100 or more, you will be covered for the full price of the purchase.

There are many circumstances when you might be able to fall back on Section 75. For example, you may be able to claim redress from your credit card company if the goods turn out to be faulty or damaged. Likewise, if the quality of an item is unsatisfactory, or the supplier you buy the item from goes bust and your order never arrives, Section 75 could help.

Further financial loss

You may also be able to claim for any further financial loss incurred as a result of the problems you have experienced with your purchase. For example, if you booked a new, more expensive flight to get you home because the original airline you booked with went bust, you could claim for the full cost of the higher cost flight. Best of all, there's no upper limit on the amount of damages you could claim.

Is it easy to claim?

Your credit card company probably won’t make it particularly easy for you to claim against them. If they reject your case and you feel the decision is unfair, complain to the Financial Ombudsman Service as soon as you can.

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