What Is A Section 75 claim?
This refers to section 75 of the Consumer Credit Act 1974 which provides a purchaser with the right to claim a refund or damages from their credit card provider, rather than the supplier that actually provided the goods or services.
This law applies to purchases between £100 and £30,000 that have been made by credit card. This must be ‘per item’, so if you spent £300 on 6 individual chairs that are £50 each then you do not qualify for this protection. However, if the items were sold as a set of 6 for £300 then you would be entitled to make a claim under section 75.
If you use your credit card to make a part payment for a purchase – for instance if you’re paying a deposit now and then the rest later, then the value of the total purchase will still need to be less than £30,000.
For instance, if you agree with a building contractor that they will build an extension for £50,000 and you pay the first £5,000 by credit card then unfortunately this will not be covered, even though the actual payment on the credit card was between £100 and £30,000, the total value of the works was over the £30,000 limit.
If you pay your bill on time then it is always worth making purchases on a credit card so that you get the benefit of this free protection.
The protection gives you the right to claim damages from the credit card company when there has been a breach of contract or misrepresentation by the supplier. This can be particularly handy when the supplier is no longer in business, they’re based abroad or perhaps you just can’t get hold of them – in all these situations you are perfectly entitled to make a claim against the credit card company.
There is no legal requirement to present your claim to the supplier first, however this may be advisable as it can sometimes be the quickest way to get the outcome you want. Also if you want a replacement for an item, rather than a refund, then it is likely that only the supplier will be able to help with that.
If the supplier does not resolve the complaint to your satisfaction then you can bring a claim against the credit card company. This is usually achieved by filling in a specific form or writing to them.