The Consumer Credit Act 1974 is a UK law that regulates credit and consumer transactions. It provides protection for consumers who purchase goods or services using credit cards or loans. Section 75 of the act is a powerful tool for consumers who want to protect themselves from faulty goods, poor services, or even fraudulent transactions. In this article, we’ll explore what Section 75 is, how it works, and how you can use it to protect your rights.
What is Section 75 of the Consumer Credit Act?
Section 75 of the Consumer Credit Act 1974 provides protection to consumers who purchase goods or services using a credit card or loan. It states that the credit card company or lender is jointly and severally liable with the seller or service provider for any breach of contract or misrepresentation. In simpler terms, this means that if you buy something using a credit card or loan and the product is faulty or the service is poor, you can claim a refund from both the seller and the credit card company or lender.
Who is protected by Section 75?
Section 75 protection only applies to consumers who use credit cards or loans to purchase goods or services. The amount of protection you receive depends on the amount you spend. If you spend between £100 and £30,000, you are protected by Section 75. This means that if there is a problem with the goods or services you purchased, you can claim a refund from both the seller and the credit card company or lender. If you spend less than £100, you may still be protected under Section 75 if you paid for the goods or services with a credit card or loan.
What transactions are covered by Section 75?
Section 75 covers a wide range of transactions, including:
- Purchasing goods or services online or in-store
- Booking a holiday or hotel room
- Buying a car
- Paying a deposit for a wedding venue or service
- Purchasing an item from a catalogue
- Making a payment through a third-party payment provider
- How does Section 75 work?
If you believe that you have a valid claim under Section 75, you should first contact the seller or service provider to see if they will provide a refund or remedy the issue. If they refuse or are unresponsive, you can contact your credit card company or lender to make a claim. You will need to provide evidence of the transaction, such as receipts or invoices, and explain why you believe you are entitled to a refund. The credit card company or lender will then investigate the claim and may request additional information. If your claim is successful, the credit card company or lender will refund you the full amount you spent, including any interest or fees.
What are the benefits of Section 75?
Section 75 provides several benefits to consumers, including:
Protection against faulty goods and poor services – If you purchase something using a credit card or loan and it turns out to be faulty or the service is poor, you can claim a refund from both the seller and the credit card company or lender.
Joint and several liability – The credit card company or lender is jointly and severally liable with the seller or service provider, which means you have two sources for a refund if there is a problem.
No need to take legal action – If you have a claim under Section 75, you do not need to take legal action against the seller or service provider. The credit card company or lender will investigate the claim and provide a refund if necessary.
Protection for online purchases – Section 75 applies to online purchases, which can be particularly useful if the seller is based in another country.