Your Guide to Credit Card Purchase Protection
Section 75 claims offer protection when making significant purchases, especially online or from unfamiliar retailers, it’s crucial to understand the protections available to you. One of the most powerful tools at your disposal is Section 75 of the Consumer Credit Act 1974. This legislation offers consumers a safety net, ensuring that credit card purchases between £100 and £30,000 are protected if something goes wrong.
What Is Section 75?
Section 75 is a provision in the UK Consumer Credit Act that holds credit card companies jointly liable with retailers if a purchase doesn’t go as planned. This means that if a retailer fails to deliver goods or services, or if they misrepresent what they’re selling, you can claim a refund directly from your credit card provider.
Key Points:
- Coverage Amount: Purchases between £100 and £30,000 are eligible.
- Joint Liability: Both the retailer and the credit card company are responsible.
- No Need for Full Payment: Even if only part of the payment was made using a credit card, the entire purchase is covered.
When Can You Make a Section 75 Claim?
You can invoke Section 75 in various situations, including:
- Non-Delivery: Items or services paid for were never received.
- Faulty Goods: Products received are defective or not as described.
- Misrepresentation: The seller provided false information about the product or service.
- Company Insolvency: The retailer has gone out of business before delivering the goods or services.
Example:
If you paid a £150 deposit on a £1,500 sofa using your credit card, and the retailer goes bankrupt before delivery, you can claim the full £1,500 from your credit card provider.
How to Make a Section 75 Claim
- Contact Your Credit Card Provider: Reach out to your card issuer, explaining the situation and stating that you’re making a Section 75 claim.
- Provide Documentation: Supply all relevant information, including receipts, correspondence with the retailer, and any evidence of the issue.
- Await Response: The credit card company will investigate and determine the validity of your claim.
Time Limits:
While there’s no strict deadline, it’s advisable to make a claim within six years of the purchase date.
Section 75 vs Chargeback: What’s the Difference?
While both offer protection, they differ in scope and application.
Section 75:
- Legal Right: Enshrined in law.
- Coverage: Purchases between £100 and £30,000.
- Joint Liability: Credit card company shares responsibility with the retailer.
Chargeback:
- Voluntary Scheme: Not a legal requirement.
- Coverage: Typically for purchases under £100.
- Time Limit: Claims usually must be made within 120 days of the transaction.
Note: If you’re not eligible for a Section 75 claim, consider initiating a chargeback through your bank or card provider.
Common Misconceptions About Section 75
- Only Full Credit Card Payments Are Covered:
False. Even if only a portion of the payment was made using a credit card, the entire purchase is protected. - Business Purchases Are Covered:
Generally, Section 75 applies to consumer purchases. Business transactions may not be eligible. - Overseas Purchases Aren’t Protected:
Section 75 can apply to international transactions, provided the purchase meets the criteria.
Tips for a Successful Section 75 Claim
- Keep Records: Maintain all receipts, emails, and correspondence related to the purchase.
- Act Promptly: While you have up to six years, initiating the claim sooner can lead to quicker resolutions.
- Be Clear and Concise: When contacting your credit card provider, clearly outline the issue and provide all necessary documentation.
Why Seek Professional Assistance for Claim?
Navigating the claims process can be complex, especially if the credit card company disputes your claim or if the retailer is unresponsive. Engaging a professional service can:
- Ensure Proper Documentation: Experts can help gather and present the necessary evidence.
- Handle Communications: They can liaise with credit card companies on your behalf.
- Increase Success Rates: Professionals understand the nuances of the law, improving the likelihood of a favourable outcome.
For specialised assistance with Section 75 claims, consider consulting Independent Loss Adjusters, who offer expert guidance tailored to your situation.
Find out more by visiting www.ilauk.co.uk.
