What is Section 75 of the Consumer Credit Act?

 

Section 75 protects your purchases when you use your credit card. Read our guide to find out how.

 

 

Section 75 is part of the Consumer Credit Act 1974. It means that your credit card provider must take the same responsibility as the retailer, for purchases made on your card, if something goes wrong.

 

This might cover you if:

  • You purchase an item or service that turns out to be faulty, or not as described.
  • The company you purchased an item or service from, goes out of business.
  • The item or service you were expecting wasn't received.

 

What does Section 75 cover?

You are covered for purchases between £100 and £30,000 made with a credit card, if the retailer breaches their contract or misrepresents their goods or services. This means you have the same rights with Vanquis as you do with the retailer or supplier.

 

It’s important to be aware that you are still covered for the full contract cost, even if you only paid for part of the purchase with a credit card, and any losses you have over and above the original amount you paid.

 

You just need to make sure the purchase price is between £100 and £30,000. You are only able to claim for a single item which has a cash price of over £100 (and not two items adding up to £100 or more, for example).

 

The claim needs to be made within six years of buying the goods or services.

When does Section 75 not apply?

Just to make you aware, there are a few things which aren’t covered by Section 75:

  • If you take cash out on a credit card and use this cash to pay for an item.
  • If there is another party involved in the transaction.
  • Purchases which are either lower than £100 or higher than £30,000 (this also applies if there are two or more items which combined add up to more than £100).
  • If your item is faulty but there is a warranty with the manufacturer. In this instance you’d need to claim directly with the manufacturer.

How to make a Section 75 claim

If you feel like you need to make a claim because of a faulty item or services that weren’t provided, we would recommend you contact the retailer or supplier and speak to them directly. You may be able to get your money back by speaking to them first without having to make a claim.

 

Contact us directly and we can discuss your claim in more detail and tell you the next steps. The following information will need to be provided to support your claim:

  • Details of the advert/product listing
  • Details of the purchase
  • Invoice/contract
  • Independent report if fault goods
  • Correspondence with the retailer when trying to fix the problem

Its really important that we have all of the above information so that we can fully assess your claim. If we don’t have any of the above it might delay the investigation.

 

What happens if a claim is rejected?

Section 75 can be applied in different ways, depending on who your credit card provider is. You might find that your claim is rejected, if your card provider doesn’t agree that your section 75 claim is valid.

 

If your section 75 claim has been rejected by Vanquis, you can make a complaint and ask us to look at this again. You can also contact the Financial Ombudsman Service directly.

 

I don't have a Section 75 claim, what can I do?

If you have paid for products or services with a debit or credit card, and are not covered by Section 75 protection and something goes wrong, you may be able to use a chargeback to get some or all of your money back. A chargeback is where you dispute a transaction, and your bank initiates a claim with the retailer's bank. The retailer has the opportunity to respond to the chargeback, and the process may take up to 120 days. If something has gone wrong with your purchase, you can contact the retailer directly, or the financial institution use for the purchase.