Consumer Credit Act Section 75 – credit card purchase protection
Quick answer: Section 75 gives you legal protection for many credit card purchases. If you buy something over £100 and up to £30,000, and it’s faulty, mis-sold or never arrives, your credit card company normally has a legal duty to put things right.
What is Section 75 protection?
It’s part of the Consumer Credit Act 1974. It means your credit card provider is jointly liable if you don’t get the service or product you paid for with the card. It allows you to make a claim against your credit card company to get your money back if a retailer or trader refuses to honour their contract properly - including if it goes bust.
How does Section 75 work?
The goods or service you bought must have cost over £100 and not more than £30,000.
But to claim under Section 75, you don’t have to have paid the full amount on your credit card. The card company is liable even if you made only part of the payment - perhaps a deposit - on your card.
For example, if you book a hotel costing £2,000 and pay a £60 deposit on the card and the rest by debit card, you would be covered for the whole amount if the hotel went out of business and you didn’t get to have your stay.
What does Section 75 cover?
It covers a wide range of instances:
- You can claim if you order goods that don’t arrive or that are not in the condition described when purchased.
- It covers costs but there’s also an opportunity to claim for associated costs. So, if an airline went bust when you were on holiday and you needed to book new return flights to get home, these costs should be covered.
- It applies to foreign transactions as well as goods bought online, by telephone, or mail order for delivery to the UK from overseas.
- You can even claim against a now closed credit card account.
- The law also applies to store cards.
What doesn’t Section 75 cover?
- If you bought something through a third-party seller, such as Amazon Marketplace. However, PayPal can be an exception as it’s still possible to claim against the credit card company providing PayPal has a ‘Commercial Entity Agreement’ with them. Citizens Advice has guidance on getting your money back if you paid by card or PayPal .
- Taking out cash on a credit card and using the cash to pay doesn’t give you Section 75 protection.
- There’s some small print on the minimum of £100 spend too. If you bought two items that together cost more than £100, but each cost less than £100, Section 75 would not apply.
- It doesn’t apply when an item is faulty but still under warranty with the manufacturer. You need to take that up with the manufacturer directly.
Credit Expert
Our expert says
Section 75 gives you valuable backup if a bigger purchase goes wrong. For qualifying credit card purchases over £100 and up to £30,000, your card provider shares responsibility if the seller breaks the contract, misleads you, fails to deliver or goes bust. It gives you another route to get your money back.Jacqui Hamilton, Experian UK
Section 75 rules at a glance
| Section 75 rule | What to know |
|---|---|
| Payment type | Section 75 covers credit card purchases. Debit cards and charge cards are not covered. Try chargeback instead. |
| Purchase amount | The item or service must cost over £100 and up to £30,000. The limit applies to each item, not the whole basket. |
| Part payments count | Paying even part of the cost on your credit card, such as a deposit, can cover the full item or service. |
| What you can claim for | You can claim if something does not arrive, is faulty, is not as described, or the seller misled you. |
| Who you claim from | You can claim from the credit card provider, the seller, or both. You cannot get paid twice for the same loss. |
| Buy direct | Third-party sellers, such as Amazon Marketplace, PayPal wallets and Buy Now Pay Later (BNPL) normally stop Section 75 applying. Paying the seller direct is safer. |
| Split payments | Using more than one payment method is fine, but you can claim from only one card provider. |
| Cash withdrawals | Taking cash out on a credit card and using it to pay does not count and won’t give you Section 75 protection. |
| Closed cards | You can still claim if the credit card account has since closed. The original payment method matters. |
| Overseas purchases | Section 75 can apply to qualifying credit card purchases made abroad. |
| Time limits | Act as soon as you can. Usual legal limits are six years in England and Wales, and five years in Scotland. |
| If rejected | Complain to the card provider first. After its final response, or after eight weeks with no response, you can try the Financial Ombudsman Service. |
How to make a Section 75 claim?
A Section 75 claim should not be your first port of call.
You should always attempt to get a refund from the retailer you bought from beforehand.
- If you have no luck retrieving your money, then it’s time for a Section 75 claim. Ask your bank for a claim form. Make sure that you specify with your credit card company that you wish to make a claim using Section 75, so there is no confusion.
- Your claim should include as much detail as possible, including a description and evidence of the attempts you have made to get money back from the retailer.
- It helps with a claim if you hang on to receipts.
If you are not able to resolve your issue with either your supplier or your credit card company, you have the right to contact The Financial Ombudsman Service which can independently assess the case. You have six months to take up a case with the Ombudsman from the time your claim is rejected.
What is the time limit for Section 75 claims?
You have up to six years to make a Section 75 claim in England, Wales and Northern Ireland, and five years in Scotland. But it’s best to start your claim as soon as you spot the problem, while you still have receipts and emails. If your card provider rejects it, you usually have six months from its final response to go to the Financial Ombudsman Service.
What about my debit card or pre-paid cards?
Section 75 does not apply for payments made using debit cards or pre-paid cards. However, there is another form of protection for these cards called chargeback.
This allows the card provider to reverse a payment you’ve made, as long as the card provider agrees that your complaint is legitimate.
Chargeback is a scheme devised by Visa, Mastercard and American Express - it is not a legal requirement like Section 75, so you’re not guaranteed to get your money back.
There are no minimum or maximum spend limits for a chargeback claim, but there’s a time limit - you get 120 days from when you first notice a problem.
You can make a claim directly through the card issuer. You should be prepared to explain the chargeback rule to bank staff, as many don’t know about it. MoneyHelper has more guidance on how chargeback and Section 75 protection works .
Frequently asked questions
Do Section 75 claims affect credit scores?
No, making a Section 75 claim won’t affect your credit score. But it’s important to keep paying your credit card as normal while a claim is ongoing. Any late or missed payments will affect your score, and stay on your credit report for six years.
Can I get credit card protection when paying for a holiday?
Yes, if your holiday, flight or hotel booking qualifies. Section 75 protects purchases costing more than £100 and up to £30,000, even if you only paid the deposit by credit card.
Remember that Section 75 only applies to single payments, though. For example: say you booked a flight for £90. Then you separately paid £95 for a hotel. Section 75 wouldn’t cover you, as both payments are under £100. But if you paid for both together, paying £185 through the same provider, you would be covered.
Be aware that travel agents can make claims trickier, if they are acting as a ‘third party’. For example, if you buy a flight ticket from a travel agent – but they are only contracted to provide the ticket, not the flight itself – you may not be able to claim. MoneyHelper has useful guidance on exactly what is covered .
If I pay by credit card, am I protected?
Often, but not always. Section 75 only applies when a single item or service costs more than £100 and up to £30,000, and you paid the seller directly by credit card. It won’t usually cover you if you bought something from a third-party seller, such as Amazon Marketplace. But you may be able to use chargeback.
Can I buy a car with credit card protection?
Yes, if the car costs more than £100 and up to £30,000, and you pay the dealer directly by credit card. You do not need to pay the full amount on the card. Even just paying the deposit on credit card will trigger Section 75 protection for the full cost of the car. This applies to both new and used cars.
Can I get credit card protection for online purchases?
Yes, online purchases can be covered by Section 75 if they meet the usual rules. The key points are price, the purchase must be more than £100 and less than £30,000, and who you paid. Buying directly from the retailer is safest. Third-party sellers and marketplaces, Buy Now Pay Later (BNPL), and some PayPal payments can stop Section 75 applying.