Section 75 Credit Card Claims UK: Your Complete Guide

What is Section 75 of the Consumer Credit Act 1974?

Section 75 of the Consumer Credit Act 1974 is one of the most underused consumer protection laws in the UK, and frankly, it's a bit of a superpower when it comes to credit card purchases.

In plain English: if you buy something with a credit card and the merchant fails to deliver it, it's faulty, or they've done a runner, your credit card company is jointly liable. This means you can chase them for your money back instead of (or as well as) the merchant.

The law applies to purchases between £100 and £30,000. Yes, you read that right - Section 75 covers purchases up to £30,000, not £25,000 as many people mistakenly believe. This threshold was updated by the Consumer Rights Act 2015.

Who Does Section 75 Actually Cover?

Here's where it gets interesting. Section 75 only applies to purchases made with a credit card. This is crucial: it does NOT cover debit cards, prepaid cards, or digital wallets (even if they're linked to your credit card account).

You must have a "debtor-creditor-supplier agreement" in place. In other words:

You (the debtor) took out credit with a credit card provider (the creditor)
You used that credit to buy something from a supplier (the merchant)

This three-way relationship is essential. If you pay with a debit card issued by the same bank, Section 75 doesn't apply - though you might have other protections under the Chargebacks scheme or the Payment Services Regulations 2017.

The purchase amount matters too. The law requires that the "cash price" is between £100 and £30,000. If you're buying something for £99.99, you're just outside protection. Sorry.

What Can You Claim For?

Section 75 covers a surprisingly broad range of scenarios:

Faulty or damaged goods - the seller breached the implied terms under the Sale of Goods Act 1979
Non-delivery - you paid but never received the item
Misrepresentation - the goods weren't as described
Services not delivered - you paid for work that wasn't completed
Fraudulent merchants - you were scammed
Holiday disasters - the accommodation was nothing like the photos
Broken promises - the merchant didn't deliver what they promised

Importantly, you can claim the full amount you paid, including delivery charges, not just the purchase price.

How to Make a Section 75 Claim: Step-by-Step

The process is straightforward but requires evidence and a bit of persistence.

Step 1: Gather Your Evidence

Collect everything: your credit card statement, the original purchase confirmation email, photos of faulty items, correspondence with the merchant, delivery notes, anything that proves what you bought and what went wrong. Courts love documentation.

Step 2: Try to Resolve It With the Merchant First

This isn't legally required, but it often works and shows the credit card company you've been reasonable. Send a firm but polite email requesting a refund, giving them 14 days to respond. Keep copies of all correspondence.

Step 3: Write to Your Credit Card Company

If the merchant ignores you, contact your credit card issuer. Write clearly stating:

The amount you paid (between £100-£30,000)
The date of the transaction
What went wrong and why the merchant is liable
Reference to the relevant law (Sale of Goods Act 1979, or the Consumer Rights Act 2015)
What you want (usually a full refund)

Send this by post or through their secure portal, and keep copies. Email won't give you a proper audit trail if you need to escalate.

Step 4: Wait for Their Response

Card companies have 56 calendar days to investigate and respond. In practice, they often take longer. If they refuse or don't respond, you can escalate to the Financial Ombudsman Service (FOS), which is free and independent.

Step 5: FOS Escalation (If Necessary)

If your credit card company rejects your claim or you hear nothing, you can complain to the FOS within six years of the dispute arising. The FOS is entirely free and has no upper limit on awards.

Important Timing Rules

You have six years from the date of the transaction to make a Section 75 claim (five years in Scotland). This is far longer than the chargeback window, which is usually 120 days. So even if your merchant disappeared months ago, Section 75 still applies.

However, don't wait around. The longer you leave it, the harder it becomes to gather evidence and memories fade.

Section 75 vs. Chargebacks: Which Should You Use?

If you have a debit card or the transaction doesn't meet Section 75 criteria, you might qualify for chargeback protection. The key differences:

Section 75: applies to credit cards, covers £100-£30,000, six-year window
Chargeback: applies to most cards, covers any amount, 120-day window

You can't use both simultaneously, but Section 75 is generally stronger if you're eligible.

Common Misconceptions About Section 75

"My bank will fight me on this." Not really. If your claim is valid, most banks process it without too much fuss. They're used to these claims.

"It only works for online purchases." False. In-store purchases with a credit card are covered too.

"I have to claim within 30 days." You're thinking of chargebacks. Section 75 gives you six years.

"If I used my card abroad, it doesn't apply." It absolutely does. The location of the purchase doesn't matter, only that you used a UK credit card.

Making Your Section 75 Claim Easier

If you've had a problem with a purchase and need to make a Section 75 claim, the hardest part is often knowing what to write and making sure your legal references are correct. This is where tools like Paybacker come in handy. Paybacker is an AI-powered platform that generates formal complaint letters citing UK law accurately, saving you hours of research and ensuring your claim hits all the right points.

Plus, if you're considering switching credit cards to get better protections in future, Paybacker has deals from providers in the Credit Cards category that you can compare side-by-side, helping you find a card with better rewards, lower rates, or superior consumer protections.

Section 75 is there to protect you. Use it.