What is Section 75?
It’s part of the Consumer Credit Act 1974 that means your credit card provider is jointly and severally responsible for any breach of contract or misrepresentation by a retailer or trader. It allows you to make a claim against your credit card company to get your money back if a retailer or trader lets you down and refuses to honour the contract properly - including if it goes bust.
How does it work?
The goods or service you bought must have cost over £100 and not more than £30,000.
However, to claim under Section 75 you don't have to have paid more than £100 or the full amount on your credit card – the card company is liable even if you made only part of the payment - perhaps a deposit - on your card.
For example, if you book a hotel costing £2,000 and pay a £60 deposit on the card and the rest by cheque or debit card, you would be covered for the whole amount if the hotel went out of business and you didn't get to have your stay.
What does Section 75 cover?
It covers a wide range of instances:
- You can claim if you order goods that don’t arrive or that are not in the condition described when purchased.
- It covers costs but there’s also an opportunity to claim for associated costs. So, if an airline went bust when you were on holiday and you needed to book new return flights to get home, these costs should be covered.
- It applies to foreign transactions as well as goods bought online, by telephone, or mail order for delivery to the UK from overseas.
- You can even claim against a now closed credit card account.
- The law also applies to store cards.
What doesn’t it cover?
- There must be a direct link payment to the company you’re claiming from for Section 75 to apply. However, PayPal can be an exception as it’s still possible to claim against the credit card company providing PayPal has a 'Commercial Entity Agreement' with them.
- Taking out cash on a credit card and using the cash to pay doesn’t give you Section 75 protection.
- There’s some small print on the minimum of £100 spend too. If you bought two items that together cost more than £100, but each cost less than £100, Section 75 would not apply.
- It doesn’t apply when an item is faulty but still under warranty with the manufacturer. You need to take that up with the manufacturer directly.
How can I claim?
A Section 75 claim should not be your first port of call.
You should always attempt to get a refund from the retailer you bought from beforehand.
- If you have no luck retrieving your money, then it’s time for a Section 75 claim. Ask your bank for a claim form. Make sure that you specify with your credit card company that you wish to make a claim using Section 75, so there is no confusion.
- Your claim should include as much detail as possible, including a description and evidence of the attempts you have made to get money back from the retailer.
- It helps with a claim if you hang on to receipts.
- If you are not able to resolve your issue with either your supplier or your credit card company, you have the right to contact The Financial Ombudsman Service which can independently assess the case. You have six months to take up a case with the Ombudsman from the time your claim is rejected.
What about my debit card or pre-paid cards?
Section 75 does not apply for payments made using these cards. However, there is another form of protection for debit and pre-paid cards called Chargeback.
This allows the card provider to reverse a payment you've made, as long as the card provider agrees that your complaint is legitimate.
Chargeback is a scheme devised by Visa, Mastercard and American Express - it is not a legal requirement like Section 75, so you’re not guaranteed to get your money back.
There are no minimum or maximum spend limits for a Chargeback claim, but there’s a time limit - you get 120 days from when you first notice a problem.
You can make a claim directly through the card issuer. You should be prepared to explain the Chargeback rule to bank staff, as many don’t know about it.
FAQs
What is Section 75? It's part of the Consumer Credit Act 1974 that means your credit card provider is jointly and severally responsible for any breach of contract or misrepresentation by a retailer or trader.
What is the purpose of Section 75? ›
[Section] 75(v) reflects a distinct constitutional value, namely that there will always be a court which has jurisdiction to determine the legality of the performance by officers of the Commonwealth, judicial or non-judicial, of their functions, or the legality of their failure to perform them.
What are Section 75 rights USA? ›
Section 75 stipulates that credit issuers can be held jointly liable for a transaction dispute, rather than just the merchant retailer (as is the case in the US). The credit issuer enabled the transaction. So, the law holds them co-accountable for everything.
What is the punishment for Section 75? ›
Provided also that on account of the aforesaid cruelty, if the child is physically incapacitated or develops a mental illness or is rendered mentally unfit to perform regular tasks or has risk to life or limb, such person shall be punishable with rigorous imprisonment, not less than three years but which may be ...
What triggers Section 75 debt? ›
Employers are liable to pay section 75 debts when an employment-cessation event or insolvency occurs, or the scheme goes into wind up.
What is a drawback under Section 75? ›
Section 75: As per section 75, if the export of goods manufactured or processed out of imported material with value addition, a drawback of customs duties chargeable on any imported materials of a class or description should be allowed.
What are the obligations of Section 75? ›
Section 75 requires public authorities to have due regard for the need to promote equality of opportunity between: persons of different religious belief, political opinion, racial group, age, marital status or sexual orientation. men and women generally. persons with a disability and persons without.
What is the Section 75 statement? ›
Section 75 means that if you pay for something costing over £100 and less than £30,000 on credit, the lender's equally liable (along with the retailer) if something goes wrong. This isn't the credit provider being nice.
What is the Section 75 arrangement? ›
Section 75 agreements can include arrangements for pooling resources and delegating certain NHS and local authority health-related functions to the other partner(s) if it would lead to an improvement in the way those functions are exercised.
What is a Section 75 in local government? ›
Section 75 agreements are used by councils and partners to deliver integrated sexual health services.
(6) For purposes of this subsection, the term “adverse action” means a denial or revocation of credit, a change in the terms of an existing credit arrangement, or a refusal to grant credit in substantially the amount or on substantially the terms requested.
What is 5 USC 7515? ›
5 U.S. Code § 7515 - Discipline of supervisors based on retaliation against whistleblowers | U.S. Code | US Law | LII / Legal Information Institute.
How does section 75 work? ›
If you used a credit card or point of sale loan to buy goods or services, then the transaction could be covered under Section 75 of the Consumer Credit Act 1974. This lets you raise a claim against your bank or lender for a breach of contract or misrepresentation by the supplier of goods or services.
How long does section 75 last? ›
You must make a claim within 120 days of making the purchase. If the purchase is for something in the future, for example, tickets to an event, the 120-day limit starts from the day the event would have happened.
Can a section 75 claim be reversed? ›
Can a Section 75 claim be reversed? Yes. Section 75 states a retailer has 45 days to dispute a reversed transaction. They'll then have another 60 days to gather evidence.
Why is Section 75 important? ›
Section 75 requires public authorities to have due regard for the need to promote equality of opportunity between: persons of different religious belief, political opinion, racial group, age, marital status or sexual orientation. men and women generally. persons with a disability and persons without.
What is Section 75 of the Marriage Act? ›
An authorised celebrant shall not solemnise a marriage under this Part unless the authorised celebrant has satisfied himself or herself as to the identity of the parties.
