What is Section 75
Section 75 of the Consumer Credit Act 1974 is a piece of UK legislation that offers vital protection to consumers in the event that something goes wrong with a purchase made using a credit card or loan. Essentially, Section 75 places the credit card company or lender jointly liable with the retailer or supplier in the event of a breach of contract or misrepresentation by the retailer/supplier. This means that if the product or service purchased is faulty, not as described, or never arrives, the consumer can claim a refund or replacement from either the retailer/supplier or the credit card company/lender.
It is important to note that the goods or service must have cost between £100 and £30,000 for Section 75 to apply. Additionally, it is only applicable for purchases made directly with the supplier or retailer, not through a third party such as Amazon or eBay. Claims must also be made within six years of the purchase date.
Section 75 offers significant protection to UK consumers, particularly in the online marketplace where purchases can sometimes be riskier. For example, if a consumer purchases a flight using a credit card and the airline goes bankrupt before the flight, the consumer can claim the full cost of the flight from the credit card company. This can provide valuable peace of mind to consumers who are making purchases that carry a significant financial risk.
It is worth noting that not all credit cards offer the same level of protection under Section 75. It is important to check the terms and conditions of your credit card to ensure that it is covered. Additionally, some credit card companies may try to delay or reject a claim made under Section 75, so it is important for consumers to know their rights and be prepared to escalate their claim if necessary.
In conclusion, Section 75 of the Consumer Credit Act is an important piece of UK legislation that offers valuable protection to consumers when making purchases using credit cards or loans. It places the credit card company or lender jointly liable with the retailer/supplier in the event of a breach of contract or misrepresentation and allows consumers to claim a refund or replacement for faulty or undelivered goods or services. While not all credit cards offer the same level of protection under Section 75, it is important for consumers to be aware of their rights and to make use of this legislation when necessary. Ultimately, it serves to help ensure that consumers are not left out of pocket when things go wrong with a purchase.
