If you buy goods or services on your credit card, Section 75 can give you extra protection if things go wrong.
Having a credit card can make it easier to buy things. If you don’t like to carry large amounts of cash with you or if a company doesn’t accept cash payment, putting purchases on a credit card can make buying things simpler.
But, what if you buy a product or that service that fails to stand up to your expectations. For example, goods arrive damaged or flights are cancelled.
Under Section 75 of the Consumer Credit Act 1974, the credit card company is jointly and severally liable for any breach of contract or misrepresentation by the retailer or trader.
This means the credit card provider is just as responsible as the retailer or trader for the goods or service supplied, allowing you to also put your claim to the credit card company.
This right is particularly useful if the retailer or trader has gone out of business, or it doesn’t respond to your letters or phone calls.
Section 75 of the Consumer Credit Act also applies to foreign transactions as well as goods bought online, by telephone or mail order for delivery to the UK from overseas.
Making a Section 75 claim
There are some limitations to when a card company is liable along with the retailer or trader. The goods or service you bought must have cost over £100 and not more than £30,000.
Examples of when you can and can’t use section 75:
- An item that cost you over £100 fails to turn up and the retailer is unresponsive.
- You put a £100 deposit down on a £500 sofa with your card, paying the rest by cheque but the sofa shop goes bust before the sofa’s delivered: Section 75 covers all £500.
- You buy a qualifying item on your credit card but since then you’ve closed your credit card account: Section 75 still has you covered.
- You buy three pairs of shoes costing £180 in total and one of the pairs fall apart the first time you wear them: The shoes are only covered if that pair cost over £100 – if you buy several items together that come to more than £100, the only items that are covered are those that cost £100 or more on their own.
If you require advice or assistance making a claim under Section 75 then contact us today and one of our legal team will assist you with your claim. We work on a NO WIN NO FEE basis so if we take on your case the risk is all ours.