How Section 75 Protects Credit Card Purchases in the UK
Section 75 is a legal protection under the Consumer Credit Act 1974. It can make a credit card provider jointly and severally liable when a supplier breaks a contract or misrepresents goods...
Section 75 is a legal protection under the Consumer Credit Act 1974. It can make a credit card provider jointly and severally liable when a supplier breaks a contract or misrepresents goods or services.
This means a consumer may be able to claim against the card provider as well as the retailer. The protection is particularly valuable when a business has closed, refuses to resolve a dispute or cannot provide a refund.
The card provider does not automatically pay compensation whenever something goes wrong. The consumer still needs to show that the supplier breached the contract or made a misrepresentation, such as supplying faulty goods, failing to deliver or making a false statement that influenced the purchase.
Section 75 generally applies where all of the following conditions are met:
The £100 threshold applies to the cash price of the individual item or service, not necessarily the amount paid on the card. For example, paying only a deposit by credit card can still preserve Section 75 rights if the total cash price of the purchase is within the statutory range.
However, splitting a single purchase into separate transactions simply to avoid the limits may create difficulties. The underlying contract and the way the transaction was arranged will be important.
Joint and several liability gives the consumer a choice of who to approach: the supplier, the credit card provider or both. The card company can be responsible for the same loss that the supplier would have been responsible for under the contract.
This does not mean the consumer can recover twice. Any refund, repair, replacement or compensation already received will normally be taken into account. The purpose of Section 75 is to provide an additional route to enforce an existing contractual right, not to create an automatic profit.
Potential claims can include the price paid for goods or services that were never supplied, the cost of repairing defective goods or losses arising directly from a serious contractual failure. The evidence and the terms of the contract will determine what can reasonably be claimed.
Section 75 is powerful, but it does not cover every card transaction. Protection may be unavailable where:
Refunds for cancelled events, travel or accommodation can involve additional contractual and regulatory issues. A card provider may ask for evidence about the supplier, the booking terms, cancellation notices and the loss suffered.
Section 75 also does not remove the need to act promptly. Limitation rules can apply, and the position may vary depending on the type of claim and where the consumer is based. Consumers should check the relevant legal deadline rather than assuming that a card complaint can be made indefinitely.
A practical claim should be organised and supported by documents:
A card provider may investigate the claim and ask for further information. If the response is unsatisfactory, the consumer can use the provider’s formal complaints process. Eligible complaints may later be referred to the Financial Ombudsman Service, subject to its rules and time limits.
Chargeback may also be relevant, particularly for debit card purchases, but it is a card-scheme process rather than the statutory protection provided by Section 75. Its availability and deadlines can differ.
| Question | General position |
|---|---|
| Legal basis | Section 75 of the Consumer Credit Act 1974 |
| Price range | More than £100 and no more than £30,000 for the individual purchase |
| Typical problems | Non-delivery, defective goods, breach of contract or misrepresentation |
| Who may be liable? | The supplier and the credit provider jointly and severally |
| Does a deposit count? | Often yes, where the total cash price meets the statutory conditions |
Does paying only £1 by credit card give Section 75 protection?
It can. The amount charged to the card does not necessarily need to exceed £100. The individual purchase’s total cash price must generally be more than £100 and no more than £30,000, and the other legal conditions must be satisfied.
Can I claim if the retailer has gone out of business?
Potentially. The ability to pursue the credit provider is one of Section 75’s main practical advantages, but the consumer must still demonstrate a breach of contract or misrepresentation and quantify the loss.
Does Section 75 apply to debit cards?
No. Section 75 is associated with regulated credit, most commonly credit cards. A debit card transaction may instead be considered under the card network’s chargeback rules.
What if the credit card provider rejects my claim?
Ask for the decision and reasons in writing, use the provider’s internal complaints procedure and consider the Financial Ombudsman Service if the complaint is eligible. Complex or high-value disputes may justify independent legal advice.
