Making a section 75 claim
Advice
Section 75 of the Consumer Credit Act 1974 protects you when you spend between £100.01 and £30,000 with a credit card on a single transaction. In effect, the card company takes on the seller's responsibility if things go wrong, legally the card company take on the liabilty for the ENTIRE debt. You don't have to use the card to pay the whole amount; even spending a penny creates protection. This security is awarded to the primary cardholder, additional users are not automatically covered.
The Act applies to most credit cards, store cards, retail credit, car finance agreements (but NOT hire purchase) etc, of particular note is that it makes no difference whether the goods are bought in the UK or abroad, the protection remains intact.
Using a third-party card processing firm.
You must pay the seller directly to qualify for section 75 protection. Therefore, always make sure you pay the seller directly, not an intermediary. If you cannot do this, then consider alternative suppliers. This is because protection relies on a three-part chain detailed below.
Creditor (Lender) – Debtor (You) – Supplier
Please consider the following scenarios: -
- The purchase of a hotel break via a travel agent. Using an intermediary such as a travel agent would not protect you as the sale is with the travel agent, not the hotel.
- Purchases via the Amazon marketplace would not be covered as in this instance Amazon act as an intermediary between you and the supplier, however, if you buy their own branded products from them directly then you would be covered.
- Theatre tickets purchased from a theatre foyer would be covered, those bought via a ticket agent would not.
What if I buy something under £100?
A system known as “Chargeback" is offered by banks, this is not a legal requirement such as Section 75 but instead, a voluntary service designed to protect their customers. This cover protects you for 120 days from the date you discovered the issue. Things that it covers would include defective goods or goods that failed to arrive. It also covers you if someone uses your card without permission or if the seller goes bust or disappears.
When the Act does not protect the cardholder
If your card was lost or stolen, you are generally liable for the first £50, however, if you report your card missing quickly card companies usually waive this charge. They may refuse to cover you if you acted negligently or without a reasonable amount of care. For instance, they may refuse to assist if: -
- It’s been a long period (over a year) since the fraudulent activity happened;
- Your card provider can prove you approved the transaction;
- You acted fraudulently: or
- You didn’t protect your card details to a reasonable degree, for instance writing down your PIN and keeping it with the card.
Using Lestons as a mediator
Lestons have specialist staff who can liaise with credit card or debit card companies should you have difficulty in getting a refund, we would need you to open a case to arrange this.
How we can help
Banks and card providers are usually fair at handling Section 75 or “chargeback” claims, however, if you do encounter any issues then Lestons have specialist staff to liaise with them to try and remedy the situation. To gain our assistance you need to open a case, this is done by simply clicking on the link at the top of the page, you will then need to deposit a sum equal to one hour’s usage, upon receipt of these funds you will be assigned your personal caseworker who will telephone you to discuss the matter and make suggestions on how to proceed. Please note your caseworker is not legally trained and can only give generic advice, their role is to prepare your details for handling by our trainee and qualified solicitors and to act as your point of contact, they will also issue you with your Password and PIN, these will be needed to log onto your client dashboard. From your dashboard you will be able to manage and view every aspect of your case, upload documents, images, files etc.