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Holidaymakers urged to protect £41bn travel spend amid summer of cancellation chaos

TotallyMoney, the credit app which helps everyone move their finances forward, is calling for customers to protect purchases with Section 75 of the Consumer Credit Act 1974.

  • Airlines cancelling thousands of flights amid staff shortages and accusations of travel firms ‘seriously overselling of flights and holidays’*
  • Brits are expected to spend a massive £41bn on foreign travel in 2022**
  • Thomas Cook, Flybe, WOW Air, and Laterooms have all collapsed in recent years†
  • Section 75 covers all credit card transactions between £100 and £30,000, protecting customers against holiday cancellations and travel companies going bust
  • A recent TotallyMoney survey discovered 57% of adults unaware of Section 75‡

Regulated by the Financial Conduct Authority (FCA), credit card firms are equally liable by law if the supplier doesn’t stick to their side of the agreement. That means, if eligible, the customer is guaranteed to get their money back.

Stay covered this summer 

Amid mass holiday cancellations and soaring inflation hitting airline profits, Brits are being urged to protect purchases with Section 75 of the Consumer Credit Act. Transactions costing between £100 and £30,000 are covered, and only valid with credit cards — not cash, debit cards, loans or buy now pay later services.

Section 75 covers all qualifying purchases — not just travel. This includes buying a new TV that turns out to be faulty, to a firm failing to deliver on a purchase when it goes out of business. A great example of Section 75 in action is the recent collapse of fashion retailer Misguided, who said they would not refund customers who have returned clothes. 

Worryingly, a recent YouGov survey, commissioned by TotallyMoney discovered that only 57% of adults were aware of the protection offered by credit cards under Section 75.

The best credit card deals currently allow customers to spread payments, interest-free for up to two years. Additional data shows that 4 in 5 TotallyMoney customers were eligible for a credit card in the past month.

TotallyMoney’s Top Five Section 75 tips are below, with a link to its in-depth guide here

Alastair Douglas, CEO of TotallyMoney comments, 

“With a summer of holiday cancellation hell being forecast, it’s essential nobody’s left out in the cold when their plans are cancelled through no fault of their own.

“Those making payments with a credit card can be confident in knowing that if anything does go wrong, they can make a claim under Section 75. Unlike insurance, this requires zero excess, and customers will be covered when there’s a breach of contract. This includes flights being cancelled and holiday firms going bust.

“Worryingly, most people aren’t aware that this free payment protection exists. Now, more than ever, the credit industry must be completely transparent with its customers, providing them with all the information they need to navigate the current economic climate.

“At TotallyMoney, we’re on a mission to help everyone move their finances forward. By protecting themselves with Section 75, they can be sure that nothing holds them back.” 

Five Section 75 Tips

Here’s our top five things to remember for Section 75. We also have a full guide here

1. £100 to £30k

Individual items and purchases costing more than £100 and up to £30,000 are covered under Section 75. So, whether it’s a cancelled flight or an all-inclusive family holiday, as long as you paid part of it on credit card, you could be reimbursed the full amount if the company goes bust.

2. Just credit

Unless at least partially paid on a credit card, Section 75 doesn’t apply to purchases using debit cards, cash, loans, or Buy Now Pay Later. It’s only valid when using credit cards.

3. Rule number 3, no third parties

Buying through a third party, like travel agents, won’t offer Section 75 protection. You need to have paid the company directly (so purchases made through PayPal, for example, aren't covered).

4. Part pay for full cover

Remember that only part of the purchase needs to be paid with a credit card. So for instance, if you pay the deposit with a credit card and the rest debit, should anything prevent you from settling the balance (like the airline collapses), Section 75 lets you claim the full amount. Not just the part paid on credit.

5. Not just travel

You’re covered for all qualifying purchases. Whether you buy a new television and it turns out to be faulty, or if you make a purchase and the firm goes under. If you’ve used a credit card, you could be protected under Section 75 of the Consumer Credit Act 1974.




** American Express


‡ TotallyMoney's Financial Awareness Survey 2022 conducted by YouGov April 2022

For more information, please contact the press team

About TotallyMoney

With a focus on the one in three UK adults financially under-served by the financial services industry, TotallyMoney is the credit app on a mission to help everyone move their finances forward.

TotallyMoney believes people’s financial data should work for them, and not against them and with more than four million customers, they provide the UK’s only free, live credit score and report.

Its service helps customers understand their financial position and provides personalised recommendations so they can start creating financial momentum. TotallyMoney also works closely with leading lenders, to ensure eligible customers are matched with the right products, underpinned by its robust data, product and tech capabilities.

TotallyMoney is regulated by the Financial Conduct Authority (FCA).

We're on a mission to help everyone move their finances forward and gain financial momentum.

TotallyMoney is an independent credit broker, not a lender. Our comparison service works with most leading lenders, covering the majority of the market. Though we may be paid a fee by lenders or brokers this never influences how our products are ranked.

We don't provide financial advice. Product information is obtained from independent sources and rates displayed may vary depending on your personal circumstances. While we make every effort to ensure that information is up to date, you should always confirm the terms of the offer with the product provider.

TotallyMoney is owned and operated by TotallyMoney Limited which is registered in England and Wales (Company Registration Number 06205695). TotallyMoney Limited is an Appointed Representative of TM Connect Limited, which is registered in England and Wales (Company Registration Number 06967012) and authorised and regulated by the Financial Conduct Authority in respect of consumer credit related activities (FCA FRN: 511936). Trading Address and Registered Office: Chapter House, 16 Brunswick Place, London N1 6DZ. Credit is available, subject to status, only to UK residents aged 18 or over.

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