Section 75 refunds
Free protection for credit card spending on items over £100
Section 75 can be your financial lifesaver – when you purchase an item between £100 and £30,000 using your credit card, your card issuer is legally obligated to intervene if issues arise. Whether the product arrives damaged, faulty, or fails to arrive altogether, you have the right to seek a refund through a Section 75 claim. To simplify the process, we offer a complimentary tool designed specifically for this purpose.
Although considerable care has been taken to maintain the accuracy of this article, it should not be considered as personalized legal advice for your specific situation. If you choose to act based on this information, you acknowledge that you are doing so at your own risk. We cannot take responsibility or be held liable for any harm or losses that may occur from your reliance on this article.
What is Section 75?
Section 75 is an important UK consumer protection law made in the 1970s that means your credit provider must take the same responsibility as the retailer if things go wrong with a purchase. Yet it doesn’t work on all purchases – just those costing a certain amount:
– Section 75 means that if you pay for something costing over £100 and less than £30,000 on credit, the lender’s equally liable (along with the retailer) if something goes wrong.
This isn’t the credit provider being nice. It’s a legal protection put in place so that you’re never in the position of paying off debt for something you either didn’t receive, or wasn’t as it should’ve been. Whether it’s a flight, kitchen, computer, or anything else, pay on a credit card, store card or with store instalment credit, and the credit provider’s responsible too.
Top tip – pay the deposit by credit card and you’re covered for the whole cost of an item or service
The law’s clear on this – you get the protection for the whole cost of an item or service, even if you only pay for a part of it on credit. The only condition is that what you’re buying must cost more than £100 and less than £30,000 in total. As long as it does, you’ll be covered for the full amount, even if you only pay 1p of it on your credit card.
– The law behind Section 75
This all comes from Section 75 of the Consumer Credit Act 1974, which why it has the rather uninspiring name Section 75. The act rather impenetrably says…
75. — (1) If the debtor under a debtor-creditor-supplier agreement falling within section 12(b) or (c) has, in relation to a transaction financed by the agreement, any claim against the supplier in respect of a misrepresentation or breach of contract, he shall have a like claim against the creditor, who, with the supplier, shall accordingly be jointly and severally liable to the debtor.
What does Section 75 cover?
Section 75 is FANTASTIC protection… if your purchase qualifies.
The table below covers scenarios where section 75 does and doesn’t apply. Yet, for all the scenarios, do remember that the item or service you’re buying needs to cost at least £100.01 but not more than £30,000. If it doesn’t, then you won’t have section 75 cover (though you may be able to get your money back using chargeback).
What is – and isn’t – covered by Section 75?
You’re COVERED by Section 75 if you… |
Used a credit card to pay for a deposit towards a single item that costs at least £100.01 but not more than £30,000 – even if the deposit is just 1p. Read more about what counts as a single item. |
| Purchased something with either a store card or store instalment credit. | |
| Bought something with PayPal Credit – see our full PayPal & Section 75 guide. | |
| Used your credit card through Apple Pay / Google Pay. | |
| Used credit to buy something that’s arrived but it’s not as described (online, in a catalogue, or over the phone). | |
| Used credit to buy something that turned out to be faulty (though do check if it’s under warranty first, as you may be able to get the manufacturer to fix it). | |
| Used credit to buy something that never arrived. | |
| Bought something on credit from a seller that’s gone bust. | |
| Used your credit card to buy something from another country online, by mail order, over the phone, or while on holiday. | |
| Used your credit card to buy from a ticket site that’s the sole vendor of the tickets (for example, direct from a concert venue). | |
| Had other costs associated with a cancelled event (for example, a hotel or train tickets). Read more about associated costs. | |
It’s a GREY AREA if you… |
Bought an item using PayPal and some other ‘modern’ payment types such as Google Wallet or Curve (even if a credit card is used). Take a look at our full PayPal & Section 75 guide. |
| Bought an item as a secondary cardholder or purchased something in the name of someone other than the primary cardholder (for example, a gift subscription). Read more on secondary cardholders and gifts. | |
You’re NOT COVERED by Section 75 if you… |
Paid for an item on your credit card that cost £100 or less, or £30,000.01 or more (or paid a deposit on your credit card for that item). Try chargeback instead. |
| Bought multiple single items that only add up to between £100 and £30,000 when combined. Read more about what counts as multiple single items. | |
| Bought something from a third party seller. This includes things like buying a ticket from a travel agent or something through Amazon Marketplace, as these are also treated as third party sellers. But you may be able to use chargeback. | |
| Made your purchase using a Buy Now Pay Later (BNPL) service. Complain to the BNPL provider instead. Failing that, try a chargeback claim. | |
| Paid for something on your debit card (though you might still be able to use chargeback). | |
| Paid for something with cash you’ve withdrawn with a credit card. | |
| Used hire purchase to pay for something, such as a car – this has its own protection scheme. |
Section 75 vs chargeback
Section 75 is one of two avenues you can use if you paid by card for something and think you’re entitled to a refund – the other is chargeback. While it’s generally considered lesser protection, there are some cases where chargeback can cover you where Section 75 can’t.
Not covered by Section 75? Try chargeback
Section 75 only kicks in for credit purchases of more than £100 (so £100.01+). It doesn’t apply to anything you pay on a credit card costing less than that, nor does it apply to anything – bought at any price – on a debit card or charge card (as these aren’t considered credit purchases).
That’s where chargeback comes in. While it isn’t a legal protection, it is part of Visa, Mastercard and Amex’s own rules, so it applies to any purchase made with a debit, credit or charge card. It allows the card provider to reverse a payment you’ve made to a retailer if it agrees you’ve a legitimate complaint.
Unlike with Section 75, though, you need to act quickly with chargeback as there’s a claim deadline. The rules set by Visa, Mastercard and American Express usually only give you 120 days to claim – and the clock normally starts ticking when you first notice a problem, but it depends on the situation. See our Chargeback guide for full info.
However, if you’ve made a Section 75 claim that’s been rejected, and the time it took means you’ve missed the deadline for chargeback, you can still make a complaint to the Financial Ombudsman. It will look at how successful it thinks a chargeback claim would’ve been had you had the chance to make it.
Covered by Section 75 AND chargeback? Consider chargeback first
Even though chargeback isn’t legal protection (whereas Section 75 is), if the full value of your purchase is protected by both schemes, it often makes sense to try chargeback first.
If you think your claim is pretty clear-cut (for example, if your holiday has been cancelled by the provider and it won’t refund you, or if you bought something online that never arrived).
“Even if you actually have a credit card and qualify for Section 75, I wouldn’t ask for that at this stage. I would ask for a chargeback. That’s because under the chargeback process, which is part of the Visa, Mastercard and Amex rules, your bank is asking for money back from the holiday firm’s bank, which your bank is unlikely to have an issue doing.”
If initiating a chargeback proves ineffective, you have the recourse of filing a Section 75 claim. Unlike chargebacks, which typically have a 120-day limit post-purchase, Section 75 claims can be made at any time. This approach ensures you avoid missing the chargeback deadline.
However, if a chargeback does not reimburse the entire purchase amount (for instance, if you made a partial payment via credit card and the remainder in cash), or if you anticipate complications with your claim (such as uncooperative behavior from the retailer), it’s advisable to proceed directly with a Section 75 claim. This strategy guarantees that your credit card provider retains legal responsibility to refund you, regardless of their ability to recover funds from the retailer.
How do I make a Section 75 claim?
The legal framework is clear in holding both the retailer and credit card company jointly accountable for Section 75 claims.
In certain cases, it may initially seem more straightforward to approach the retailer — such as when seeking repairs or replacements rather than refunds — but this isn’t mandatory.
If the retailer is bankrupt or located abroad, for instance, you have the option to skip contacting them and instead approach your credit card provider directly. It’s crucial to ensure your claim is directed correctly — for instance, if you hold an HSBC Mastercard, contact HSBC, not Mastercard.
Your card provider will likely request the following information from you:
- Details about the transaction – including the date, amount, and what you were trying to buy.
- Why you’re making a Section 75 claim – this could be because a product or service hasn’t met up to the standard required by your consumer rights, or because the thing you bought hasn’t turned up at all. Sometimes you might be asked for evidence or independent verification that the thing you bought is faulty.
- Any action you’ve already taken to reclaim the money from the seller / service provider – your card provider will likely ask whether you’ve attempted to recover the money yourself. But remember, the card provider is jointly liable for the amount too.
There are three main ways you can make a Section 75 claim:
- Through online banking or your mobile banking app
- By submitting a claim with our free Section 75 reclaim tool
- Writing to your credit card company using our template letter
If it doesn’t work and your claim’s rejected, your next port of call should be to escalate your claim to the Financial Ombudsman.
Option 1: Make a Section 75 claim on your banking app or online
The process varies depending on your credit card issuer. Some allow you to dispute transactions with a simple tap on your mobile banking app, while others offer options like online chat support or phone calls for claims.
To initiate a claim, contact your credit card provider directly. You can typically find specific instructions on their website or within the ‘Help’ section of your mobile banking app. If the process seems straightforward through your card issuer, proceed directly. However, if it involves cumbersome steps such as filling out forms or additional requirements, consider using our complimentary Section 75 reclaim tool for a smoother experience.
Option 2: Make a Section 75 claim using our free reclaim tool
We’ve partnered with complaints firm Resolver on this tool. It helps you draft a letter (which you can alter before sending), sends it, tells you when you’ve had a response, keeps track of your complaint, and escalates it to the Financial Ombudsman if necessary.
In the tool, select your card provider, then “Credit cards” then “Problem with a purchase (Section 75” from the dropdowns. Then you’ll need to choose why you’re making the claim. You’ll then be taken to Resolver’s website where you can fill in details of your claim – always give as much information as possible. Your claim letter will then be drafted for you, and in most cases you can send it to your card provider directly on Resolver’s website.
Note: Resolver isn’t a complaints management firm. There’s no charge to use the service, and you’re in charge of complaint and progressing it – but it will support you through the process, and help you escalate your claim at the right time too.
Option 3: Use our template letter
If you’d rather just send the letter yourself, we’ve also made a template that you can use as a general guide. Click the link below to download and edit:
Section 75 refund template letter (Word doc, 61kB)
Section 75 claim rejected? Escalate your complaint to the Financial Ombudsman
If your credit provider fails to assist, takes longer than eight weeks to address your complaint, or you are unsatisfied with their response, you should escalate the matter to the Financial Ombudsman.
This process is entirely free and highly recommended. The ombudsman can investigate complaints where you believe you have been treated unfairly and unreasonably. This encompasses situations where a company has not adhered to good industry practices, regulatory guidelines, or legal requirements. While less formal than a court proceeding, the Ombudsman retains the authority to compel companies to compensate you if your case is upheld.
If you opt to use the Resolver service to support your claim, it will prompt you when it is appropriate to elevate your complaint to the Financial Ombudsman and guide you through the process effectively.
Section 75 FAQs
Q – What if I paid on credit for something costing more than £30,000?
A – If your purchase exceeds the Section 75 threshold but involves some form of credit, Section 75a might provide coverage, albeit with added complexity compared to Section 75.
Section 75a applies to purchases costing between £30,000 and £60,260. To qualify for coverage, the credit must be specifically tied to the item through a debtor-creditor-supplier agreement. This ensures that the finance provider can clearly trace the connection between the funds borrowed and the goods or services purchased.
For instance, if you used a personal loan to buy a £40,000 car without linking the loan directly to the car purchase, Section 75a wouldn’t apply. However, if you secured a loan through the car dealership specifically for purchasing the car, then you would be covered.
Another significant distinction is that under Section 75, you have the option to raise a complaint with either the seller/service provider or the credit provider, as they share joint liability. In contrast, under Section 75a, you must first attempt to resolve the issue with the supplier (if they are still operational) before seeking recourse from the credit provider.
Q – What if I need to make a claim but I’ve cancelled my credit card?
A – If you’ve made a purchase using a credit card that has since been canceled, you may still be eligible for Section 75 protection, according to the Financial Ombudsman Service. They confirmed that as long as you meet all other requirements, the cancellation of the card itself does not affect your eligibility. What matters is the original payment method – specifically, that you used a credit card.
If you’re unsure, it’s advisable to submit a claim. The worst-case scenario is that your claim may be denied, so there’s no harm in trying.
Q – I can’t get credit. Can I still get Section 75 cover?
A – No, Section 75 applies specifically to purchases made with certain types of credit, excluding prepaid cards. However, there is an alternative method to obtain purchase protection using prepaid cards. Prepaid cards function by allowing you to preload them with funds before making purchases. They are beneficial for individuals unable to qualify for traditional credit due to their lack of credit checking.
One such example is Cashplus, which provides a contactless debit ‘account’ that operates similarly to a prepaid credit card. This account offers purchase protection akin to Section 75, although it’s essential to note that this does not constitute legal protection.
Q – Which credit card should I pick?
A – Credit card companies make their money by charging you interest. And frankly the interest cost is so large it often overrides the protection, so follow…
– The Golden Rule: Always set up a direct debit to pay the card off in full each month, so you’ll never pay interest
If you don’t have a credit card or have debts on a card, and need another specially for these purchases, which you can pay off in full each month, it’s time to apply for a new card. The two best choices are:
- A cashback credit cardThese pay you when you spend on them. With a direct debit set up so there’s no interest, they can add £100s a year to your income without any hassle. Full info and best buys in our Credit card rewards guide.
- A 0% spending cardIf you’re going to spend on a card you can’t repay in full, ensure it’s as cheap as possible. A number of cards offer 0% interest for more than a year on all your spending. Full info and best buys in our Best 0% credit cards guide.