Section 75 of the Consumer Credit Act 1974

Section 75

Wouldn’t it be great if an expert in Section 75 could help clarify the complicated legislation and offer advice and support on how to handle your claims? Now there is! The Chargeback Company has a team of experts specialising in Section 75 ready to help.

What is Section 75?

When a consumer uses a credit card to purchase goods or services exceeding £100 and something goes wrong, they’ll be legally protected under Section 75 of the Consumer Credit Act 1974.

The UK law states credit card companies are equally liable for any misrepresentation or breach of contract made by the merchant.  This means consumers can ask their credit card company or the merchant for a refund—it’s their choice.  

Depending on specific circumstances, credit card companies may also be responsible for the cost over and above the value amount debited to the card.  This could include consequential losses, contingent liability, statutory interest, and potentially, compensation.

Below is an example of a valid Section 75 claim:

A consumer pays £150 deposit on a credit card towards a £5,000 bathroom suite, and pays the remainder of the balance by cheque. Unfortunately, the merchant goes bust before bathroom suite is delivered. As the deposit was made using a credit card, this means the credit card company will be jointly liable to refund the full value of the bathroom suite.

What Would be Covered Under Section 75?

  • Any goods or services exceeding £100 and less than £30,000 – partial payments made on a credit card which are under £100 are covered, so long as the total value of the purchase exceeded that threshold.
  • This applies to both domestic and foreign transactions.

How It Can Go Wrong for Issuers

It is important to note all Section 75 claims need to be assessed confidently and dealt with correctly.  Failure to do so may lead to the following;

  • Reputational risk if declining valid claims.
  • Losses not being recovered using available resources.

Need Help with Assessing, Preventing or Recovering Losses?

If so, The Chargeback Company has the expertise you have been looking for. If you’d like more information about our solutions and how they can help your business, contact us today.