Section 75 gives you extra protection for any £100+ purchase (up to £30,000) and can save you thousands if something goes wrong. Read our guide and never use your debit card again.
Section 75 may be the most consumer-friendly bit of legislation ever written. Quite simply it makes it a no-brainer to make your purchases on a credit card and not a debit card.
It is a section of the Consumer Credit Act 1974, which states that credit card companies are “jointly and severally liable” alongside retailers. In English, that means that if you buy something with your credit card and there is a problem you can go to your credit card company to get your money back.
Section 75 gives you powerful rights to a refund should anything go wrong with a purchase made on a credit card. Millions of people are losing out when things go wrong either because they don’t know what Section 75 is or because they’ve made purchases by debit.
If there’s a problem with your purchase or the company goes bust, the credit card company has to make sure you get your money back.
You can claim under Section 75 if you order something and the retailer goes bust or if an ordered item never arrives or the goods are faulty.
There is a limit though, what you buy has to be worth between £100 and £30,000. But if you only put down a deposit on your credit card for something worth between those two values you can still claim back the full amount from your credit card provider if something goes wrong.
For example, if you are buying a £30,000 car and you put down a 10% deposit using your credit card and pay the remainder in cash or with your debit card, you can still claim the full £30,000 back from your credit card company if the car dealer fails to deliver the car to you.
Examples of when you can and can’t use section 75:
As well as covering you for the cost of the item you can claim for ‘consequential losses’. This means that, if as a result of the problem you were forced to splash additional cash you can claim this back from the credit card company as well.
For example, if you buy a second-hand car and it breaks down in the middle of nowhere on the way home from the garage forcing you to pay for roadside recovery and a taxi home, you should be able to claim for the cost of the rescue too.
EVERY credit card comes with section 75 benefits so the card to use is whatever card is best for you for other reasons.The great thing about section 75 is that it covers purchases made with any credit card. There are no exceptions.
Use our advanced credit matching technology to show the cards that will deliver you most benefit and that are likely to accept you.
It’s not just credit card users who benefit from extra consumer protection. If you paid for goods with a debit card you may be protected under rules known as ‘chargeback.’ This is offered by American Express, MasterCard and Visa, and there is no upper limit on the amount to claim.
It involves asking your bank to reverse a transaction and refund money back into your account. It can be used if you have ordered goods that have not turned up, are damaged or not as described, or if you have paid for service you haven’t received. It can also be used if you’ve been a victim of fraud.
Try to sort out your problem with the trader first, as this may be quicker and easier. But chargeback can be useful if the trader has gone bust or you just cannot get a response out of them. Just make sure you don’t hang about before making your claim – you need to do it within 120 days of realising there is a problem. You should also be prepared to explain the process to bank staff, as many don’t know about it.
Unlike Section 75, chargeback is not a legal requirement from banks – it’s just part of the debit card provider’s rules. This means you aren’t guaranteed to get your money back.