How to Use Section 75 to Claim Credit Card Refunds

When a purchase goes wrong - for example, goods don't arrive, are faulty, or services aren't provided - UK law gives strong protections for people who paid by credit card. One of the most powerful of these protections is Section 75 of the Consumer Credit Act 1974, which makes your credit card provider legally responsible alongside the seller for certain types of loss. This guide explains how Section 75 works, when it applies, the steps to make a claim, time limits, potential challenges and practical tips for success.

What Section 75 Is and Why It Matters

Section 75 creates joint and several liability between your credit card company and the supplier of goods or services where a purchase has failed in some way. It applies when you pay for something with a credit card and:

• The total price of the goods or services is more than £100 and not more than £30,000, and
• There is a three‑party link between you (the buyer), the seller (supplier), and your credit card issuer - meaning the credit card provider helped finance the purchase.

Section 75 is a statutory right - not a voluntary concession - so your credit card provider is legally obliged to consider valid claims. It covers a wide range of consumer purchases, whether bought online, in‑store, by telephone, mail order, or even abroad for delivery to the UK.

What Section 75 Can Cover

You may be able to claim compensation under Section 75 if any of the following happens:

• Goods or services were never delivered.
• Items arrived but were faulty, misdescribed, or damaged.
• The seller went out of business before completing your order.
• There was a significant breach of contract or misrepresentation.

Section 75 allows you to hold your credit card provider responsible for the same compensation you could have claimed directly from the supplier, including the cost of the purchase and any associated losses reasonably incurred.

When Section 75 Does Not Apply

Section 75 does not cover every situation. Common exclusions include:

• Transactions under £100.
• Purchases above £30,000.
• Payments made entirely with cash or debit cards.
• Spending that does not establish a direct three‑party link, such as transactions through third‑party payment processors (e.g. some online marketplaces and payment services).

Even if Section 75 doesn't apply, you may be able to seek a refund or compensation using the chargeback scheme, a voluntary system offered by card networks, though chargeback does not create legal liability like Section 75.

Step‑by‑Step Guide to Making a Section 75 Claim

1. Try to Resolve the Problem With the Seller First

Before involving your credit card provider, attempt to resolve the issue directly with the retailer. Write to them to explain what went wrong and request a refund, repair, replacement, or other remedy.

Keep copies of all correspondence, invoices, contracts, receipts and delivery records - these will form part of your evidence.

2. Prepare Your Evidence

Your Section 75 claim should include as much supporting documentation as possible. Useful evidence includes:

• Contracts, invoices and receipts showing the purchase and payment.
• Communications with the seller demonstrating attempts to resolve the matter.
• Descriptions of the fault or shortfall (photos, expert reports, independent assessments).
• Evidence the seller is insolvent or unresponsive, if applicable.

A clear paper trail significantly strengthens your claim.

3. Contact Your Credit Card Provider Promptly

Approach your credit card issuer by phone, in writing, or through online banking. Tell them you are making a claim under Section 75 of the Consumer Credit Act 1974.

Provide full details of:

• What you bought, from whom and when.
• Why you believe Section 75 applies.
• What compensation you are seeking.
• Copies of all supporting evidence.

There is no statutory time limit for credit card providers to decide, but acting promptly helps avoid loss of evidence or memory fading.

4. Wait for the Provider's Decision

Your credit card provider will investigate your claim. They may:

• Accept your claim and refund the money.
• Ask for further evidence or clarification.
• Reject your claim.

If your claim is accepted, the refund or compensation should be credited to your account. If it's rejected, ask for a written explanation and keep this for the next steps.

5. Escalate If Necessary

If your Section 75 claim is rejected or the provider delays without sufficient justification:

• Use the provider's formal complaints procedure.
• If you receive a final response that is unsatisfactory, you can refer your dispute to the Financial Ombudsman Service (FOS). The FOS is an independent body that can review your claim and make a binding decision.

You usually have six months from the provider's final response to refer to the FOS, so keep track of timelines.

Common Challenges and Practical Issues

Proving the Three‑Party Link

Section 75 only applies where a direct link exists between you, the seller and the credit card company. If a payment was made through intermediaries (e.g. certain online marketplaces or processors), it may weaken your claim, as there may be no “direct” contract for legal purposes.

Partial or Deposit Payments

You can still make a Section 75 claim even if you only paid part of the total cost using your credit card - for example, a deposit - as long as the overall purchase cost falls within the qualifying range.

Provider vs Seller Dispute

In some cases, your credit card provider may try to treat your claim as a chargeback (a separate card scheme mechanism) rather than Section 75. While this can still secure a refund, it is a voluntary process and can have more restrictive time limits. If you specifically want to rely on Section 75, ensure you clearly state this to your provider.

Common Questions from our Readers

Is there a time limit to submit a Section 75 claim?
There is no statutory deadline for the card provider to resolve your claim, but you should act as soon as you become aware of the problem. If your card provider issues a final rejection, you generally have six months to take the matter to the Financial Ombudsman Service.

Does Section 75 apply if the company has gone out of business?
Yes. Section 75 can still apply if the retailer becomes insolvent and fails to deliver goods or services, because your contract rights remain enforceable against the credit card provider.

Does Section 75 apply to debit cards?
No. Section 75 only applies to credit cards and similar regulated credit agreements (such as store cards or certain instalment credit). For debit cards, you may use the chargeback scheme instead.

Key Takeaways

Section 75 of the Consumer Credit Act 1974 is a valuable legal protection for consumers in England and Wales who use credit cards to pay for goods and services. It makes your credit card provider legally responsible alongside the seller if something goes wrong with the purchase - including where goods don't arrive, are misdescribed, faulty, or if the seller becomes insolvent. To claim, you should gather evidence, contact your credit card provider with a clear explanation of your case, follow their complaints process if needed, and, if a dispute arises, consider referring the matter to the Financial Ombudsman Service. Acting promptly and maintaining good records will increase your chances of a successful outcome.