Section 75 Explained: Your Credit Card Protection for Purchases Between £100 and £30,000
Section 75 of the Consumer Credit Act 1974 makes your credit card provider jointly liable with the supplier for any misrepresentation or breach of contract on purchases between £100 and £30,000. This applies in debtor-creditor-supplier agreements under sections 12(b) or (c) of the Act, as outlined on legislation.gov.uk. If a supplier delivers faulty goods, fails to deliver, or goes bust, you can claim a full refund from your card issuer without chasing the trader first.
This protection covers credit card payments made directly to the supplier, including partial payments by the primary cardholder. It empowers UK consumers facing common issues like non-delivery or defective products, providing a statutory safety net beyond the supplier's reliability.
What Is Section 75 of the Consumer Credit Act 1974?
Section 75 establishes joint liability between the creditor (your credit card provider) and the supplier in specific credit agreements. It targets debtor-creditor-supplier arrangements under section 12(b) or (c) of the Consumer Credit Act 1974, where the creditor is linked to the supplier through the credit provided for the purchase.
Enacted in 1974 and current as of 2026, this provision holds the card issuer equally responsible for claims arising from misrepresentation or breach of contract. For details, refer to the official text on legislation.gov.uk. This legal foundation ensures credit card users have recourse directly from the financier when suppliers fail.
When Does Section 75 Apply to Your Purchase?
Section 75 covers purchases where the total cash price falls between £100 and £30,000. This threshold, confirmed across sources including finance.co.uk and legislation.gov.uk, sets clear boundaries for eligibility.
It applies to credit cards where payment goes directly to the supplier, not through intermediaries. Primary cardholders qualify, as do cases involving partial credit card payments. Multiple sources, such as Hey Money Talk and Citizens Advice, affirm these criteria help consumers assess coverage for everyday high-street or online buys.
What Section 75 Does Not Cover
Section 75 has defined exclusions to manage its scope. It does not apply to package holidays protected under ATOL or ABTA schemes. Certain services, like insurance policies, fall outside its reach. Purchases made via third-party payment gateways, such as PayPal, also lack coverage since payment must be direct to the supplier.
These limits, noted by sites including Fool.co.uk and Compare the Market, ensure users turn to alternative protections where relevant.
How to Make a Section 75 Claim Step by Step
Follow these steps to pursue a claim:
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Gather evidence: Collect receipts, contracts, correspondence, and proof of the issue (e.g., photos of faulty goods or non-delivery confirmation).
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Contact your credit card provider in writing: Send a formal letter or email stating, "I am making a claim under Section 75 of the Consumer Credit Act 1974." Include purchase details, the problem, and your requested remedy (e.g., full refund). You are not obligated to contact the supplier first, though it can strengthen your case.
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Await response: The provider must acknowledge receipt promptly and resolve within 8 weeks.
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Escalate if needed: If no satisfactory reply within 8 weeks, contact the Financial Ombudsman Service free of charge.
This process, supported by finance.co.uk and Citizens Advice, equips you to act effectively.
Section 75 Time Limits and Key Deadlines
Section 75 itself imposes no strict time limit for claims. However, the Limitation Act 1980 governs overall timeframes, with recommendations to act within 6 years of the breach or awareness of the issue. This aligns standard civil claim periods, as noted by finance.co.uk.
Prompt action preserves evidence and options, especially since providers expect claims tied to reasonable timelines.
Section 75 vs Chargeback: Which Protection Should You Use?
Section 75 offers statutory protection mandatory for qualifying credit card purchases, while chargeback is a voluntary scheme available on debit, prepaid, and credit cards with shorter windows like 120 days.
| Feature | Section 75 | Chargeback |
|---|---|---|
| Legal Status | Statutory and mandatory | Voluntary scheme |
| Applicable Cards | Credit cards (£100-£30,000) | Debit, prepaid, credit cards |
| Timeframe | Up to 6 years recommended | Typically 120 days |
| Direct Payment Req. | Yes, to supplier | Varies |
| Full Refund Potential | Yes, joint liability | Partial or full, case-by-case |
Section 75 provides stronger, longer-term recourse for qualifying credit card purchases. Use chargeback for debit/prepaid or quicker disputes outside Section 75 eligibility, per insights from finance.co.uk.
FAQ
Does Section 75 cover purchases made via PayPal or Google Pay?
No, payments must be made directly to the supplier, excluding third-party gateways like PayPal or Google Pay.
Do I need to contact the supplier before claiming under Section 75?
No, you can claim directly from the credit card provider, though contacting the supplier first is advisable.
What happens if my credit card provider doesn't respond within 8 weeks?
Escalate to the Financial Ombudsman Service, which can investigate free of charge.
Is there a strict time limit for Section 75 claims?
No strict limit under Section 75, but act within 6 years as recommended under the Limitation Act 1980.
How does Section 75 differ from chargeback for non-delivery?
Section 75 is statutory for credit cards with longer timeframes; chargeback is voluntary, often limited to 120 days across card types.
Can I claim under Section 75 for purchases under £100?
No, the threshold starts at £100 up to £30,000.
Gather your purchase details and evidence today. If eligible, start with a written claim to your card provider under Section 75 for the strongest protection.