If you buy goods or services and pay them in part or full on your credit card or finance, you are protected by Section 75 of the 1974 Consumer Credit Act (CCA). If you meet the criteria set out in section 75, you can facilitate a claim against the bank, credit card company or lender.
However, although you have the right to make a claim, it isn't an automatic right of recourse, and you still need to win your claim to be refunded your money.
If your claim is successful, the credit card or finance company will refund you in full or in part. The refund could also be subject to interest and a statutory compensation payment of 8% per year on the total capital from the original point of sale. If your section 75 claim is successful against a finance company, your outstanding finance could also be written off.
Do I qualify?
To be protected by section 75 and instigate a claim, you must meet the following criteria.
- Paid at least £100 and no more than £30,000.
- Paid by Credit card no more than six years ago unless you are making a Section 75 claim against a loan that is still ongoing.
Important Information That's Often Misunderstood
If you purchase goods or services worth £9,000 and only pay a £900 deposit with your credit card, with the remaining £8,100 paid by bank transfer, Section 75 still protects the entire £9,000.
Even though only £500 was paid on the credit card, if your claim is successful, you can recover the entire £10,000 from the credit provider, plus interest and statutory Compensation.
What does Section 75 protect you against?
If you pay with a credit card, Section 75 covers you in these situations:
- Fraudulent transactions
- Being mis-sold goods or services
- Misleading claims or promises made by a retailer that turn out to be false
- A retailer going out of business before delivering the promised goods or services
Bad Advice
There is a lot of bad advice, self-help templates, and misleading information on the internet that has resulted in consumers not winning their Section 75 claims or getting back what they are entitled to.
Some online commentators, TV personalities, and publicists believe that filling out a simple form and sending it off to the bank is all you need to do. It's clear they have never worked in this industry! This misleading information has often led to consumers giving up their claims or getting them rejected by the financial ombudsman due to the lack of relevant arguments and evidence.
Whilst some consumers successfully submit their own claims, we are here to help those who can't and are struggling with their cases. It's worth noting that if you cannot convince your credit card company to pay you, your next step is the Financial Ombudsman Service, which only had an overall uphold rate of 38% in 2023. Not great odds!
You earned it. Let us help you protect it
Having the very best people in your corner fighting tooth and nail on your behalf gives you an added advantage. Our legal expertise, financial knowledge, and experience will undoubtedly place you in the best possible position to recover your money.
For a free evaluation of your case, get in touch.