Section 75 Explained: Free Purchase Protection You Didn't Know You Had

Section 75 of the Consumer Credit Act 1974 is one of the most powerful consumer protection tools out there, and most people have no idea it exists. If you paid for something costing between £100 and £30,000 using a credit card, your card provider is equally responsible alongside the retailer.

What Is Section 75 Protection?

Section 75 makes your credit card company equally responsible for:

• Misrepresentation (you were told something that wasn't true)
• Breach of contract (you didn't get what was promised)
• The seller going bust

This means if the retailer won't help you, can't help you, or has gone out of business, you can claim directly from your credit card company.

When Can You Use Section 75?

You can make a Section 75 claim when:

1. You paid by credit card (not debit card, not PayPal via credit card)
2. The item or service cost between £100 and £30,000
3. There was a breach of contract or misrepresentation

Important: The £100 Threshold

The £100 minimum applies to the single item, not the total basket. If you buy a £90 item and a £50 item, neither qualifies on its own, so Section 75 doesn't apply. But if you buy a single £100 item, you're covered.

Section 75 vs Chargeback

People often mix up Section 75 with chargeback. Here's how they're different:

Step-by-Step: Making a Section 75 Claim

Step 1: Gather Your Evidence

Collect receipts, emails, photos of faulty goods, and any communication with the seller.

Step 2: Contact Your Card Provider

Call the number on the back of your credit card or use their online complaints process. Tell them you want to make a "Section 75 claim."

Step 3: Explain the Problem

Be clear about what went wrong. Was it misrepresentation or breach of contract?

Step 4: Provide Documentation

Send copies (not originals) of all your evidence.

Step 5: Wait for a Response

The card company has 8 weeks to respond. If they refuse unfairly, you can escalate to the Financial Ombudsman.

Real-World Examples

Example 1: Faulty Laptop

You buy a £500 laptop that stops working after 2 months. The retailer refuses a refund. Under Section 75, you can claim from your credit card company.

Example 2: Holiday Company Goes Bust

You pay £2,000 for a holiday. The company goes into administration before your trip. Section 75 means your credit card company must refund you.

Example 3: Car Misrepresentation

You buy a used car for £8,000, told it has full service history. It doesn't. That's misrepresentation, and Section 75 applies.

What If Your Claim Is Rejected?

If your credit card company rejects your claim, you've got options:

1. Ask for a detailed explanation in writing
2. Escalate internally through their complaints process
3. Contact the Financial Ombudsman (it's free)
4. Consider small claims court for clear-cut cases

Tips for Success

• Always pay at least part of the purchase on credit card (even £1 triggers Section 75 for the full amount)
• Keep all documentation for 6 years
• Make your claim to the card company in writing
• Be clear about whether it's breach of contract or misrepresentation