Section 75 Protection for Credit Card Payments

The information on this page is taken from the website of Which? Magazine run by the Consumers' Association. Read the Original

Under Section 75 of the Consumer Credit Act, your credit card company is jointly liable if something goes wrong with a product or a service you've paid for by credit card.

You can potentially claim for any breach of contract or misrepresentation by the company from which you’ve bought your goods.

This means your credit card company shares equal responsibility with the retailer or trader for the goods or service supplied, allowing you to put your claim to the credit card company.

You don't have to reach stalemate with the retailer or trader before you can contact your credit card provider - you can make a claim to both the retailer and credit card provider simultaneously.

Section 75 is particularly useful if the retailer or trader has gone bust, or you're getting no response to your letters or phone calls.

Full Protection for Deposit Payments

To claim under Section 75 of the Consumer Credit Act, the item or service you bought must have cost over £100 and not more than £30,000.

You don't have to have paid the full amount on your credit card – the card company is liable even if you made only part of the payment (a deposit, say) on your card. 

It's the value of the goods you're buying that is key - not the amount paid on the card.

For example, if you ordered a new car from a car dealer and paid a £500 deposit with your credit card and the balance of £19,500 by cheque, you would be covered for the whole £20,000 if the dealer went out of business and you didn't receive your car.

You have the same rights against your credit card company as you have against the retailer or trader.

So if your claim is for a repair then this is the claim you would put to your credit card provider - you wouldn't be able to also ask for a refund, for instance, if you were actually claiming for a repair or a replacement item.