Section 75 Claims

Credit Cards are a convenient way to purchase products and services and provide added protection if things go wrong. Credit Card providers advance money for unsighted transactions. As such, consumer credit laws dictate that the retailer and credit card company are jointly and severally liable for compensation claims if things go wrong.

A chargeback through Section 75 can be the best and, in some cases, the only way to get your money back if the product you purchased is missold or misrepresented or the business closes down. Unfortunately, Section 75 protection doesn't guarantee a refund; it only works if you win your claim.

Consumers need to be aware of several rules before proceeding with a Section 75 claim.

• Claims statute-barred after 6 years.
• A Minimum of £100 and a maximum of £30,000 can be claimed.
• Debit Cards are covered in the same way.

Many claimants miss out on the full amount due to them because they do not fully understand the rules. Paying for a product or service on a credit card protects not only the card payment but also the balance payment, whether that be by bank transfer, debit card, or cheque.

For example. If you purchased a service for £9000, paid £500 on your credit card and the balance of £9500 by bank transfer, the credit card company is liable to pay back the whole amount. This is as long as the credit-debtor-supplier link isn't broken. If it is, this wouldn't be the case unless an extensive investigation can prove the link.

Compensation is paid at a statutory rate of 8% of the total capital from the original point of sale. This would be taxable at the point of dispersing and added to the refund amount. Some of our clients have received back more money than they paid due to this interest accumulating over six years.