What is a Section 75 claim and when can I use it?

Full answer

Section 75 is one of the strongest consumer protections available in the UK, making a credit card provider equally responsible alongside the retailer or supplier for problems with a purchase, rather than just facilitating the payment. **The key conditions for a valid Section 75 claim** The purchase must cost between £100 and £30,000 (the total cash price of the item, not necessarily the amount charged to the card, since paying even a small deposit on the card can trigger protection for the whole purchase price), and it must be paid for at least in part directly on a credit card (not a linked loan, not a debit card, and generally not a third-party payment processor without a direct card-to-merchant agreement, though this area has case law nuances). **What Section 75 covers** Common scenarios include: goods that are faulty, not as described, or never delivered; a company going into administration or liquidation before delivering goods or services already paid for; and services that were not provided as agreed, such as a holiday package or home improvement contract left unfinished. **Why "joint and several liability" matters** Because the credit card provider is jointly and severally liable with the retailer, you can pursue a claim against the card provider EVEN IF the retailer has gone out of business or is otherwise unreachable -- this is one of the most valuable aspects of Section 75, since it means your protection does not disappear just because the company you bought from has ceased trading. **Partial payment still gives full protection** A common misconception is that Section 75 only covers the amount actually charged to the card -- in fact, if you pay even a small deposit (say £50) on a credit card towards a total purchase of £2,000, Section 75 protection generally extends to the FULL £2,000 purchase price, not just the £50 deposit, provided the overall transaction falls within the £100-£30,000 range. **How to make a claim** Contact your credit card provider directly, explaining the issue and providing evidence (receipts, correspondence with the retailer, evidence the goods were faulty or not delivered) -- the card provider will investigate and, if the claim is valid, refund you directly, then pursue recovery from the retailer themselves if appropriate. **Section 75 vs chargeback** Chargeback is a different, less formal protection available through card payment schemes (Visa, Mastercard) for both debit and credit card payments, without the same statutory backing as Section 75 -- it is discretionary (governed by scheme rules rather than law) and has shorter typical time limits, but can be useful for smaller purchases below £100 or debit card payments that Section 75 does not cover. **Time limits** There is no strict statutory time limit for Section 75 claims in the way chargeback has scheme-imposed deadlines, though claims are generally expected to be made within a reasonable time of the problem arising, and the six-year general limitation period for contract claims is often used as a practical guide. **Practical tip** Whenever making a significant purchase (holidays, large electronics, home improvements, or anything from a company whose financial stability you are unsure of), pay at least part of the cost on a credit card rather than a debit card specifically to secure Section 75 protection, even if you plan to pay off the balance immediately to avoid interest.

Try the calculator

More answers

• How does making a complaint to the Financial Ombudsman Service work?
• What is a continuous payment authority and how do I cancel one?