What is Section 75?
Section 75 of the Consumer Credit Act 1974 is a legal right that protects you when you spend on your credit card.
If you buy something that costs between £100 and £30,000, you can often get your money back from your credit card provider if something goes wrong.
Section 75 is part of the Consumer Credit Act 1974, which sets out your rights when you take out financial products like loans and credit cards.
The Consumer Credit Act 1974 also covers how interest can be calculated, how loans are advertised, making early repayments and more.
Section 75 of the act states that both the retailer and your credit card provider will be "jointly and severally liable" to you if something goes wrong, meaning you can get a full refund from either of them. It is designed to stop consumers getting into debt when you pay for goods and services you do not receive.
You can read the exact wording of Section 75 on the GOV.UK website.
When can you use Section 75?
Section 75 covers you when you pay for products like a new phone or services like a hotel booking on your credit card. Your card provider will have to refund you if:
Your items are not delivered
You buy something that is faulty or damaged and cannot get a refund or replacement
A company goes into administration before they have given you what you paid for
You have to spend £100 to £30,000
Section 75 only applies if you buy something that costs between £100 and £30,000.
The £100 minimum applies to each item you buy. If you bought a watch that cost £110, you would be covered. If you bought two watches that cost £70 each, you would not be covered - even if you bought them together from the same shop.
Delivery charges and other fees do not count towards this minimum price. If you bought a tablet for £95 with a £7 delivery charge, you would not be covered by Section 75 because the item itself cost less than £100.
If you bought a flight to Rome for £70 and a separate return ticket for £50, you would not be able to claim under Section 75, even though the total cost is £120.
However, if you bought a return ticket for £120, you could get your money back with Section 75 if the airline went out of business.
Yes - if you buy something that is part of a multi buy or buy one get one free offer, you will be covered as long as the total cost of the items is between £100 and £30,000.
For example, if you bought two dresses on sale at £150 each with a buy one get one free deal, you would be covered; if you bought two dresses for £75 each, you would not be covered.
Paying a deposit on your card is enough
If you use your card to pay a deposit on something that costs between £100 and £30,000, you will be protected for the full purchase amount by Section 75 - even if the deposit is for less than £100.
For example, you could pay a £20 deposit on your credit card for a television that cost £450 and then pay the remaining £430 in cash or using your debit card. If the television were faulty and you could not get a refund from the seller, you could claim the money back from your credit card provider.
You are covered abroad
If you order an item from abroad or spend on your card while you are in another country, purchases that cost £100 to £30,000 will be protected.
You may also be able to reclaim any foreign transaction fees charged on your card.
Section 75 applies to more than just credit cards
You get Section 75 protection with:
Store cards like the Topshop card
Instalment credit agreements, such as if you spread the cost of a new sofa over 36 months
Some car finance deals, but not hire purchase agreements
Transactions on debit cards and charge cards are not protected by Section 75.
How to claim
Tell your credit card provider that you want to claim under Section 75 by phone, email, secure message or post. Let them know the details of the transaction, including:
The name of the retailer
The service or product you bought
How much it cost
Any other costs you want to claim back
What was wrong your purchase, for example it was faulty
The date you made the purchase
Any attempts you have made to get money back from the retailer
Some providers will ask you to give them the details in writing or by completing a Section 75 claim form either online or by post.
You may be able to speed up the process by sending them copies of receipts, your credit card statement and records of any correspondence you have had with the retailer.
You can claim for associated costs
Section 75 covers "consequential losses", as well as the cost of what you bought. This covers the costs caused by the problem with your purchase.
For example, if you bought tickets for an event that got cancelled, you may be able to claim back your travel and hotel costs from your credit card company.
You can still make a claim through Section 75 if you have closed your credit card account.
Should you contact the retailer or your card provider?
If you buy something faulty, your purchase fails to show up or a service is not delivered, contact the company you bought it from first.
Although you can try to get your money from your credit card company straight away, it is usually easier to get a refund or a replacement from the company you paid as long as it is not in administration.
If you do not manage to get your money back, you can then contact your credit card provider to get a refund from them instead.
How to claim if a company goes out of business
Getting a refund from a retailer that has gone into administration is unlikely. It will usually be much quicker if you contact your credit card provider to make a claim instead.
When can you not use Section 75?
You cannot use Section 75 to get your money back for purchases that cost less than £100 or more than £30,000 or in the following circumstances:
When you pay by cash, cheque, debit card, charge card or prepaid card
If you find what you have bought cheaper somewhere else
If you change your mind and decide you no longer want what you bought
If you pay with cash you have withdrawn from your credit card
When you buy land
Purchases made on behalf of a business instead of personal spending
If you pay a regular fee for a service and the fee amount is less than £100 (even if you have paid more than £100 in total over several months)
Purchases made through third parties
If you buy something through a third party and try to claim through Section 75, your credit card company may argue that they do not need to reimburse you because they have not had a direct transaction with the retailer.
For example if you bought a package holiday through a travel agent or paid for an item on the internet using PayPal, it is likely your provider will turn down your claim.
However, PayPal offer their own PayPal Buyer Protection and most package holidays come with protection from ATOL (Air Travel Organisers' Licensing) or ABTA (Association of British Travel Agents). Here is how to check what protection your holiday comes with.
Your provider is likely to reject your claim, but you may be able to challenge them. Although some borrowers have successfully claimed through the Court of Appeal, you could complain about your provider's decision in writing yourself or contact the Financial Ombudsman for help.
Section 75 will cover buying vouchers in some circumstances. If you bought vouchers worth £100 to £30,000 with a credit card directly from the company you spend them with, you can use Section 75. For example, a £150 Marks and Spencer voucher you bought at M&S would be covered.
However, vouchers bought through a third party are not covered. This includes most vouchers that can be used in several different shops like Love2Shop gift vouchers.
What if the credit provider and supplier are the same?
You cannot use Section 75 if the credit provider and the supplier of what you have bought are the same company; for example if you used a Next store card in a Next Store.
Purchases made by another card holder
If you let someone else use your credit card account as a secondary cardholder, Section 75 will not apply to any transactions made on their card.
The only exception is if they use it to buy something that you will use too.
How to use the Chargeback scheme
You can use the Chargeback scheme to get your money back on some card purchases not covered by Section 75, including:
Purchases for less than £100
Purchases made on a debit card