Section 75 Consumer Credit Act Claims

Section 75 of the Consumer Credit Act 1974 creates a statutory right of action that makes the credit provider (your bank or credit card issuer) jointly and severally liable alongside the supplier (the seller) if the supplier:

• Breaches the contract (for example, fails to deliver goods, delivers defective goods, cancels the service); or
• Makes a misrepresentation (provides false information that induces you to make the purchase)

This means you can pursue your credit card company for the same remedy you would have against the seller. If the goods were faulty, the seller has gone bust, or the holiday company has refused a refund, your credit card issuer must deal with your claim as if they were the seller.

A key advantage is that the credit card company's liability is joint and several — meaning it is the full liability, not a secondary or guarantor liability. You do not have to sue the seller first; you can go directly to your credit card issuer.

Section 75 applies even if you only paid part of the purchase price with the credit card. For example, if you paid a £50 deposit on a £2,000 holiday by credit card and the rest by bank transfer, your credit card company is liable for the full £2,000.

Section 75 applies when:

• You paid with a credit card (Mastercard, Visa, American Express, store card) — it does not apply to debit cards, prepaid cards, or charge cards in the same way
• The cash price of the item or service is between £100 and £30,000
• The purchase was a consumer transaction — purchases for business purposes have limited protection
• There is a debtor-creditor-supplier agreement — broadly, a direct link between the credit card and the purchase

Section 75 does not apply to:

• Purchases below £100 (though chargeback may be available)
• Purchases above £30,000
• Purchases made through certain payment intermediaries (this is a complex area — some third-party payment platforms break the chain of liability)
• Debit card purchases (Visa and Mastercard debit transactions may be covered by chargeback instead)
• Cash advances or money transfers

Note that purchases made through PayPal, Klarna, or similar payment platforms may or may not attract Section 75 protection depending on the specific arrangement. If in doubt, check with your card issuer.

To make a Section 75 claim, follow these steps:

1. Attempt to resolve with the seller first — while not legally required before making a Section 75 claim, card issuers typically expect you to have tried. Keep a record of all attempts.
2. Contact your credit card issuer — call the number on the back of your card or write in. State clearly that you are making a Section 75 claim. Give the issuer the transaction details, the amount, and the nature of the breach or misrepresentation.
3. Provide evidence — supply copies of your contract, order confirmation, correspondence with the seller, proof of non-delivery or defects, and your credit card statement showing the payment.
4. Follow up in writing — if you initially called, follow up with a written complaint confirming the Section 75 claim.
5. Escalate if necessary — if the card issuer rejects your claim unfairly or fails to respond within eight weeks, you can escalate to the Financial Ombudsman Service, which is free to use.

Most straightforward Section 75 claims are resolved within a few weeks. Complex cases involving insolvency, contested facts, or large sums may take longer. The Financial Ombudsman upholds a significant proportion of Section 75 complaints where issuers have incorrectly refused claims.

Section 75 and chargeback are different legal mechanisms that sometimes overlap. Key differences:

• Legal basis: Section 75 is a statutory right under the Consumer Credit Act 1974. Chargeback is a card scheme rule (Visa/Mastercard/Amex) — contractual, not statutory.
• Cards covered: Section 75 covers credit cards only. Chargeback applies to both debit and credit cards.
• Amount: Section 75 requires the item to cost between £100 and £30,000. Chargeback has no minimum (though card schemes set their own internal thresholds).
• Time limits: Chargeback must usually be claimed within 120 days of the transaction or expected delivery date. Section 75 has the standard six-year contract limitation period.
• Strength: Section 75 is generally stronger because it is a statutory right. Card issuers cannot easily refuse valid Section 75 claims, whereas chargeback can be rejected by the merchant.

In practice, try chargeback first for debit card transactions and smaller credit card purchases under £100. Use Section 75 for credit card purchases between £100 and £30,000, particularly where the seller has failed, gone bust, or is unresponsive.