25 July 2016

What is Section 75 – and how could it protect your purchases?

If the airline that you’ve booked flights with goes bust or an online purchase doesn’t show up, you may be entitled to a full refund.

Under Section 75 of the Consumer Credit Act 1974, your credit card may give you free protection if a supplier breaches the contract or misrepresents the goods or services that you’ve purchased from them. This applies to new or second–hand purchases that you’ve made using your credit card, whether in the UK or abroad.

But bear in mind that some purchases, such as flights, can be more expensive with a credit card, so it’s a good idea to understand when Section 75 applies.

When does Section 75 apply?

  • Where the value of the one item is more than £100 and up to £30,000. For example, if you’re buying a season ticket that costs more than £100 you would be protected, but not if you’re buying individual tickets that come to the same value in advance.

  • If you’re paying a deposit on goods or services that will cost more than £100. Just paying the deposit by credit card, even if it’s less than £100, is enough to give you legal protection for the entire amount under Section 75.

  • When you’re dealing directly with the supplier of the product or service. But when you buy through third parties such as Paypal, Amazon Marketplace or Groupon you’re unlikely to be protected by Section 75.

How to make a claim under Section 75

You may be able to make a claim if:

  • You have not received products or services that you paid for.
  • The goods or services are faulty or do not match the supplier's description.
  • Your purchase was made based on incorrect information provided by the supplier.

What do you need to do?

Step 1: Get in touch with your credit card provider.

Step 2: It may be useful to contact the supplier and see whether they are happy to offer a refund.

If you’re writing to your provider, make sure that you include the following information:

  • The details of what you bought, where, when and how much you paid.
  • An explanation of how the goods or services you received breached contract (e.g. faulty, not as described or not delivered).
  • Details of your correspondence with the supplier.
  • What you expect from the credit card company (e.g. a refund).

If you are having trouble making a claim

You can contact the Financial Ombudsman if you think that the supplier or your credit card company has made the wrong decision.

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