Section 75: How Your Credit Card Can Protect a Purchase

What section 75 does

Section 75 of the Consumer Credit Act 1974 makes your credit card provider jointly responsible with the retailer if something goes wrong with a purchase: if the goods are faulty, not as described or never arrive, or the retailer breaks the contract. You can claim from the card provider for the same things you could claim from the retailer, and it doesn't matter if the retailer has stopped trading.

When it applies

• You paid with a credit card, or certain kinds of credit agreement arranged through the retailer.
• The price of a single item was more than £100 and no more than £30,000.
• You can have paid only part of the price on the card, such as a deposit, and still be covered for the whole amount.
• You paid the retailer directly.

When it doesn't

• Debit card payments, which aren't credit. You may be able to use chargeback instead (see below).
• Payments through some third parties, such as PayPal or certain booking agents, which can break the direct link between your card provider and the retailer.
• Items costing £100 or less, even if your basket totalled more.
• Purchases made by an additional cardholder on your account.

Chargeback: the debit card alternative

Chargeback isn't a law but a process run by card schemes such as Visa and Mastercard. Your bank can ask the retailer's bank to reverse a payment for goods that didn't arrive, were faulty or weren't as described. It works for debit and credit cards and any amount, but it's voluntary and has time limits, often 120 days, so ask your bank promptly.

How to make a section 75 claim

1. Try the retailer first, if it's still trading, and keep a record of what you asked for and what they said.
2. Gather your evidence: the receipt or order confirmation, the card statement showing the payment, photos of the fault and your correspondence.
3. Contact your card provider and say you're making a claim under section 75 of the Consumer Credit Act. Many have an online form.
4. If they turn you down, or haven't answered within eight weeks, you can take the complaint to the Financial Ombudsman Service, free of charge.

Worth knowing at the till

Paying for bigger purchases with a credit card, even a small part of the price, adds a second line of protection at no extra cost, as long as you pay the card off. It works alongside your other rights rather than replacing them. See your rights at 30 days, 6 months and 6 years and what counts as proof of purchase.