Section 75 Claims: Your Secret Weapon for Credit Card Protection
Section 75 Claims Assistance
Ever felt like you’ve been left high and dry after a purchase gone wrong? Whether it’s a holiday that never happened, a gadget that never arrived, or a service that fell spectacularly short, there’s a little-known hero in UK consumer law ready to swoop in: Section 75 of the Consumer Credit Act 1974.
What Is Section 75?
In simple terms, Section 75 makes your credit card provider equally responsible for any breach of contract or misrepresentation by a retailer or trader. This means if something goes awry with a purchase, you can claim your money back from the credit card company, not just the seller.
Key Criteria:
- Purchase Amount: Between £100 and £30,000.
- Payment Method: Paid (even partially) with a credit card.
- Direct Purchase: Transaction must be directly between you and the seller.
Even if you only paid a deposit on your credit card, as long as the total cost is within the specified range, you’re covered for the entire amount.
Real-Life Rescue: A Case Study
Consider the story of a consumer who paid a deposit for furniture using a credit card, only for the company to go into administration before delivery. By invoking Section 75, they successfully reclaimed the full amount through their credit card provider, highlighting the effectiveness of this protection.
Common Misconceptions Debunked
Let’s clear up some myths:
- Myth: You must pay the full amount on your credit card.
- Truth: Even a partial payment qualifies.
- Myth: It only covers UK purchases.
- Truth: Section 75 applies to overseas transactions too.
- Myth: It’s only for physical goods.
- Truth: Services like holidays and flights are covered as well.
How to make a section 75 claim
- Contact Your Credit Card Provider: Explain the issue and state that you’re making a Section 75 claim.
- Provide Documentation: Include receipts, correspondence, and any evidence supporting your claim.
- Await Response: The provider should investigate and respond, typically within 8 weeks.
- Escalate if Necessary: If unsatisfied, you can take your complaint to the Financial Ombudsman Service.
Tips for a Successful Claim
- Act Promptly: While there’s no strict deadline, it’s best to initiate claims as soon as possible.
- Keep Records: Maintain all related documents and communications.
- Be Clear and Concise: Clearly outline the issue and desired resolution.
When Section 75 Doesn’t Apply
Section 75 doesn’t cover:
- Debit Card Purchases: Consider the Chargeback scheme instead.
- Third-Party Payments: If there’s no direct link