Section 75 refunds – what are my rights under the consumer credit act to get a refund from my bank?
Getting ripped-off is something nobody likes but you have the legal right to get your money back if something goes wrong - if you've paid by credit card
NONE of us like to be ripped-off.
But if something goes wrong when you’ve spent a lot of cash on a dream purchase then don’t worry – Section 75 of the Consumer Credit Act has got you covered.
Here we explain, what Section 75 is, how you got about claiming your refund and what to do if your claim is rejected
What is Section 75?
Section 75 of the Consumer Credit Act is one of the most important bits of consumer legislation in the UK.
It means that if you pay for a big purchase on your credit card and something happens – like the goods aren’t delivered or the the shop goes bust – your card provider is just as responsible as the retailer to refund you.
There are a few caveats to the legal protection – the purchase you are making must cost between £100 and £30,000 and it’s important to remember that it only applies to credit cards – but it has helped countless Brits get their money back after they’ve been let down.
What isn't covered by Section 75?
WHILE Section 75 offers great protection for consumers, there are a few things you need to be aware of.
- In circumstances when you’ve paid for goods through an agent or a third party, then you may not be able to claim under Section 75. For example, if you buy concert tickets direct from the venue with your credit card, then Section 75 may apply but if you bought them via a ticketing agency then it may not. This is because the card provider could argue that as the payment wasn’t paid directly to the supplier of the goods or service, it doesn’t apply, as it doesn’t have a “direct relationship” with them.
- Another grey area is when you pay with your credit card through services like PayPal. If the company you are buying from has something called a “Commercial Entity Agreement” with Paypal then you may still be able to make a claim. Paypal also has its own refund system, so consumer should use that in the first instance.
- Although Section 75 doesn’t cover debit cards or payments under £100, there is another refund scheme which can help called chargeback. This however isn’t a legal right, so if you’re making a big purchase it’s always best to use your credit card to make sure you’re covered.
What is covered by Section 75?
The protection applies to most credit agreements, so as well as credit cards, it applies to store cards and store instalment credit deals too.
So if the retailer you’re buying from goes bust or your goods aren’t delivered or the items are faulty, you have the legal right to go to your card provider to get your cash back.
You’re even protected if you haven’t paid for the item fully – say you’ve paid a deposit you’ll still be covered, as long as the total cost of the item is more than £100.
Section 75 also applies to goods bought online, over the phone or mail order which are delivered to the UK from abroad too.
Remember that you aren’t covered by Section 75 if you pay for items with your debit card.
How can I make a Section 75 claim?
To make a claim, contact your credit card provider – your first port of call should be its customer services phone number – and tell them you want to make a claim under Section 75.
It should then send you a claim form which you can fill-in and your provider will use to process your application.
Your card firm might ask you to provide evidence such as a receipt or a report verifying that the item is faulty.
In cases where the retailer hasn’t gone bust, you should complain to them first but if they aren’t treating your care with the proper attention, you should contact your card provider.
What should I do if my claim is rejected?
If you find that your card company has been unhelpful and refused your claim – even though you have a legal right to the refund – you should take your case to the Financial Ombudsman Service (FOS).
Consumer group Which? says that you should ask your so you can take it to the FOS, who will decide if you have been treated fairly or not – and if you should be refunded.
If more than eight weeks have passed since you submitted your claim to your card company, you can go to the FOS without needing to bother with a letter.
We pay for your stories! Do you have a story for The Sun Online Money team? Email us at money@the-sun.co.uk or call 0207 78 24516. Don’t forget to join the for the latest bargains and money-saving advice.