Section 75 of the Consumer Credit Act: What It Covers, When It Applies, and How to Claim

Section 75 is a UK legal protection under the Consumer Credit Act 1974 that makes your credit card company jointly liable with a retailer if there’s a misrepresentation or breach of contract on a purchase priced between £100 and £30,000. It means if a seller goes bust, doesn’t deliver, or misleads you, you can claim your money back from the card issuer as well as the merchant.

TL;DR

• Section 75 sits in the Consumer Credit Act 1974, not the Consumer Rights Act 2015.
• It covers single-item purchases from £100-£30,000 paid with credit (not debit) where there’s a direct buyer-card issuer-merchant link.
• You can claim for breach of contract or misrepresentation-even if the retailer is insolvent.
• Deposits count: pay £1 on a qualifying credit card and the whole item price can be covered.
• If refused, you can escalate to the Financial Ombudsman Service after the issuer’s final response or 8 weeks.

Quick gut-check before we go deep: if you paid by credit card and the single item was priced £100-£30,000, there’s no third-party wallet breaking the chain, and the seller breached the deal or misled you, you probably have Section 75 rights. If not, try chargeback. If it’s a faulty product, your Consumer Rights Act powers still apply, and Section 75 can help you enforce them against the card issuer.

What Section 75 actually is

Consumer Credit Act 1974 is a UK statute that regulates consumer credit agreements and creates creditor liability for misrepresentation and breach by a supplier on qualifying purchases. Section 75 is the famous bit: it creates “joint and several liability.” In plain English, both the merchant and your card issuer are on the hook. You don’t need to chase the seller first. You can go straight to the bank if that’s faster or the seller has vanished.

Debtor-Creditor-Supplier chain is the legal link Section 75 needs. The buyer (debtor) uses a credit agreement with the card issuer (creditor) to pay the merchant (supplier). If that chain is intact and the item price is between £100 and £30,000, the issuer shares liability for breach or misrepresentation. This usually covers classic credit cards and store cards. It doesn’t cover debit cards or bank transfers.

Credit card means a regulated running-credit agreement-think Visa, Mastercard, or Amex credit products-used directly with the merchant to buy goods or services. Charge cards (where the balance must be paid in full monthly) may fall outside the law because they aren’t “credit” in the same sense. American Express has both credit and charge products, so check your card type.

If you like one tidy phrase to remember, it’s this: Section 75 Consumer Credit Act.

What Section 75 covers-and what it doesn’t

• Covered: breach of contract (non-delivery, faulty goods, services not as promised), misrepresentation (false claims that induced you to buy).
• Item price range: £100 to £30,000 (single item price, not just the amount you put on the card).
• Deposits: paying any part on credit can cover the whole item if the total price is within the band.
• Overseas merchants: usually covered if the credit agreement is UK-regulated and the D-C-S chain is intact.
• Add-on services: if they’re part of the same contract (e.g., a kitchen plus fitting), that’s usually within scope.

Common exclusions and tripwires:

• Third-party wallets that “break the chain” (e.g., some PayPal transactions, marketplaces acting as the merchant of record). If your card issuer pays PayPal, not the seller, the legal link can break.
• Business or corporate cards: Section 75 is for consumer credit, not business-to-business deals.
• Debit cards and bank transfers: no Section 75. Use chargeback instead.
• Charge cards (certain Amex products): many are not “credit” agreements, so Section 75 won’t apply.
• Multiple items under £100 each: if they’re separate items and none is £100+, you won’t qualify-even if the basket total is above £100.

Section 75 vs other protections you’ll hear about

Chargeback is a card scheme rule used by banks (Visa, Mastercard, Amex) to reverse card payments for disputes like non-delivery or fraud. It’s not law, it’s a network rule. It can cover debit and credit, and the time limits are much tighter (often 120 days from the expected delivery date). Great for speed; weaker when a seller argues back.

Consumer Rights Act 2015 is UK legislation that sets product quality standards and remedies for faulty goods and services. It gives you the right to a repair, replacement, or refund from the retailer. Section 75 lets you use those rights against your card issuer as well, which is handy if the retailer refuses.

Financial Ombudsman Service is the UK dispute-resolution body that can order banks to compensate customers when they’ve handled a complaint unfairly or wrongly. If your bank rejects a Section 75 claim, you can escalate to the Ombudsman after you receive a final response or 8 weeks have passed.

Financial Conduct Authority is the UK regulator that supervises consumer credit firms, including card issuers. The FCA sets conduct standards, and poor handling of consumer complaints can attract regulatory attention.

Eligibility rules (with the nitty-gritty that causes headaches)

Think of Section 75 like a simple checklist:

1. The item price is £100-£30,000.
2. You paid using a UK-regulated credit agreement (credit card or store card).
3. There’s a clean Debtor-Creditor-Supplier chain (no aggregator acting as principal).
4. There’s a breach of contract or misrepresentation.

Edge cases to watch:

• Partial payments and deposits: If the single item costs £2,000 and you paid a £50 deposit on a credit card and the rest by bank transfer, Section 75 still can cover the full £2,000.
• Split tender on multi-item baskets: Only the item priced £100+ qualifies. If you buy five £80 items, none qualify, even if the total is £400.
• Travel bookings: Paying a travel agent may or may not keep the chain intact. If the agent is the merchant of record, fine; if the airline is and the agent is just a platform, it may still be intact. If a wallet sits in the middle as the principal, the chain may be broken.
• Additional cardholders: The primary account holder usually makes the claim, but purchases by additional cardholders can still be covered if they’re on the same account.
• Overseas purchases: Often covered. Card issuers sometimes dispute these, but Ombudsman decisions have upheld many cross-border Section 75 claims where the D-C-S link is intact.
• Hire purchase and store finance: Many are covered if regulated under the Consumer Credit Act and the item price falls within the band.

How to make a Section 75 claim (step by step)

1. Collect your evidence. Contracts, invoices, screenshots of the listing, emails, delivery promises, and your card statement. If it’s misrepresentation, save the original wording that misled you.
2. Contact the card issuer. Tell them you’re making a Section 75 claim under the Consumer Credit Act 1974 for breach of contract or misrepresentation. State the item price, payment method, and what went wrong.
3. Be clear on your remedy. Refund? Cost of repair? Replacement value? If you’ve already paid for failed repairs, add those invoices.
4. Give a fair time frame. 14-28 days is typical for an initial response. Banks often acknowledge quickly and ask for documents.
5. Escalate if needed. If the bank refuses or stalls, ask for a final response letter. After that-or after 8 weeks-you can take it to the Financial Ombudsman Service.

Time limits worth knowing: For court action, limitation is commonly 6 years in England and Wales (5 in Scotland) from the breach, and the Ombudsman typically expects complaints within 6 years of the event or 3 years from when you knew, whichever is later. Chargeback is much shorter-often 120 days, sometimes up to 540 days for future-dated travel-so start with chargeback if you’re inside those windows and Section 75 if you need a legal route.

Real-world examples (so this isn’t just theory)

• E-bike never delivered: You paid £1,499 on a credit card; the seller goes bust. Section 75 lets you claim the full £1,499 from the card issuer.
• Kitchen worktop disaster: Fitting is part of the same contract. You paid a £200 deposit on a credit card and £2,800 by bank transfer; the granite arrives cracked and the trader vanishes. Section 75 covers the full contract price.
• Mis-sold used car: Dealer claims “full service history” and “no accidents.” You find major accident repairs. That’s misrepresentation. Section 75 can refund or cover the cost to put the car in the condition promised.
• Airline cancellation runaround: Paid directly with a credit card; airline refuses a refund and only offers a voucher. Section 75 can help you recover the cash if the contract entitles you to a refund.
• Wallet detour bites: You paid via a wallet where the wallet-not the retailer-was the merchant of record. The D-C-S chain is broken, so Section 75 likely fails. Try chargeback or the wallet’s buyer protection instead.

Section 75 vs Chargeback vs Consumer Rights Act vs Wallet Protections

Common pitfalls-and how to avoid them

• Wallets and marketplaces: If the platform is the merchant of record, Section 75 may not apply. If you want the protection, pay the retailer directly with your credit card.
• Under-£100 items: If you’re close to £100, a slight change (e.g., adding an extended warranty) won’t help unless the single item price itself is £100 or more.
• Charge card confusion: Some Amex products are charge, not credit. Check your card type before assuming Section 75 applies.
• Evidence gap: Keep the product page, emails, and delivery promises. Misrepresentation cases live or die on what was actually said.
• Delay drift: If chargeback is available, use it early while you also prepare a Section 75 claim. Don’t miss the 120-day window.
• Group bookings: For travel or events, ensure the contracting party and item values are clear. If one traveler didn’t pay, the issuer may query who can claim for which part.

Related concepts you’ll see in decisions and guidance

Section 75A extends certain rights for linked credit agreements above £30,000 up to £60,260 in specific scenarios, but it’s narrower and more complex than Section 75. You’ll also hear about “connected lender liability,” which is the legal idea behind Section 75.

Two practical touchpoints: the Consumer Rights Act 2015 defines what “satisfactory quality” and “fit for purpose” mean, and Section 75 lets you enforce those rights against the card issuer. And chargeback-via Visa, Mastercard, or Amex-can act as a fast first step, especially when the seller is unresponsive.

Authoritative sources behind this framework: the Consumer Credit Act 1974 (especially s.75), the Consumer Rights Act 2015, guidance from the Financial Ombudsman Service, and the Financial Conduct Authority’s rules on complaint handling and fair treatment of customers.

Practical scripts and templates

When writing to your card issuer, keep it simple:

Subject: Section 75 claim - [Retailer], £[Item price], [Date]

I’m making a claim under Section 75 of the Consumer Credit Act 1974.
Item: [Describe item/service]
Price: £[Total price]
Paid: [Amount and date] on [Card type and last 4 digits]
Issue: [Non-delivery / Breach of contract / Misrepresentation]
Remedy sought: [Full refund / Cost of repair £x / Replacement value]
Evidence attached: Contract, invoice, emails, product listing, photos.

Please confirm next steps. If you reject, send a Final Response so I can refer the matter to the Financial Ombudsman Service.

Troubleshooting weird scenarios

• Retailer offers a repair but you want a refund: Under the Consumer Rights Act 2015, early faults often entitle you to a refund; Section 75 lets you seek that from the card issuer if the retailer refuses.
• Part-paid cash, part credit: Still fine if the item price is within £100-£30,000 and some of it was paid on credit.
• Digital goods/services: Covered if there’s a breach or misrepresentation-save the claims made on the sales page and logs showing access failures.
• International seller: Often okay, but expect more pushback. Keep proof of jurisdiction and terms, and consider Ombudsman escalation if the issuer resists.
• Issuer says “use chargeback”: You can, but you don’t have to. Section 75 is law. If they refuse, ask for a Final Response.
• Used but faulty: Section 75 still applies. The key is what the contract promised and whether the goods match that standard.

Why Section 75 is often the best tool in messy disputes

It’s the only mainstream consumer remedy that pins legal liability on a big, solvent company (your card issuer) for a smaller seller’s mistakes. That changes the power balance. Issuers are regulated, have complaint-handling duties, and can be ordered to pay by the Ombudsman. For big-ticket items like cars, furniture, or travel, that’s a real safety net.

Next steps

• Check the basics: item price £100-£30,000, paid on a UK credit agreement, and a breach/misrepresentation.
• Gather proof and file a clear Section 75 claim with your card issuer.
• If time-sensitive, run a chargeback in parallel while you prep the Section 75 case.
• If rejected, request a Final Response and go to the Financial Ombudsman Service.
• For future purchases, pay at least a small deposit on a credit card directly with the retailer to keep the chain intact.

If you only remember three things: pay direct with a credit card, keep your paperwork, and don’t hesitate to escalate. Section 75 exists to make big problems solvable-even when the seller disappears.