Section 75 Guide (Consumer Credit Act Protection)

What Is Section 75?

Section 75 of the Consumer Credit Act 1974 makes the credit card provider (the lender) jointly and severally liable with the supplier for any breach of contract or misrepresentation. This means if you have a valid claim against the supplier (e.g. the goods are faulty, the service was not provided, or the company went bust), you can claim the full amount from your credit card provider instead. The key principles: the purchase must cost more than £100 and not more than £30,000 (including delivery charges, VAT, or any part-payment by other means). The item must be a single item — you cannot aggregate small purchases to reach £100. The purchase must have been made using a credit card (including Visa, Mastercard, Amex store cards, and charge cards) — debit cards, pre-paid cards, and charge cards issued by Amex itself are covered differently. The protection is automatic — you do not need to pay for it. You can claim the full purchase price even if you only paid a deposit (as little as £1) on the card, as long as the total cost of the item exceeds £100. You do not need to have paid the full amount on the credit card — making any part-payment triggers the protection. If the supplier is based abroad, Section 75 still applies as long as the credit card provider is UK-regulated.

What Purchases Are Covered

Section 75 covers purchases of goods and services where the item cost £100–£30,000, including: faulty or defective items, goods that do not match the description, services not provided or performed with reasonable care and skill, items that never arrive, deposits paid but the company goes into administration, airline or holiday bookings where the travel provider goes bust, building work that is not completed or is substandard, and vehicle purchases from a dealer where the car has undisclosed faults. Section 75 does not cover: purchases made using a debit card, pre-paid card, or charge card (with exceptions for American Express charge cards), purchases under £100 (use chargeback instead), purchases over £30,000 (even if you pay part on credit card), cash withdrawals or balance transfers, gambling losses (even if deposited via credit card), transactions between private individuals (e.g. buying from Facebook Marketplace or eBay from a private seller), and purchases made through an intermediary where the supplier is not the trader (e.g. using PayPal — the legal position is complex). Store cards are covered if they are a credit card facility. You can also claim for the service element of a purchase — for example, if you buy a sofa including delivery and the delivery was lost, you can claim the full cost. For hire purchase and personal contract purchase (PCP) agreements, see our Car Finance Reclaim guide →.

Section 75 vs Chargeback

Section 75 and chargeback are two different protections with different rules. Section 75 is a legal right under the Consumer Credit Act 1974, while chargeback is a voluntary scheme operated by card schemes (Visa, Mastercard, Amex). The key differences: Minimum spend — Section 75 requires a single item costing £100–£30,000; chargeback has no minimum or maximum spend. Backed by law — Section 75 gives you a statutory right enforceable in court; chargeback is a scheme rule with no statutory basis. Time limits — Section 75 has a 6-year limit (5 in Scotland) from the breach of contract; chargeback has strict 120–540 day limits depending on the card scheme. Card type — Section 75 only covers credit cards; chargeback covers credit cards, debit cards, and pre-paid cards. Liability — under Section 75, the card provider is jointly liable with the supplier; under chargeback, the provider simply reverses the transaction. International purchases — both apply to purchases made abroad with a UK card. In practice, if your purchase costs £100–£30,000 on a credit card, use Section 75 first because it is a legal right with a longer time limit and stronger protection. If the purchase is under £100, or you used a debit card, use chargeback. You can use both — if chargeback fails, you can still pursue a Section 75 claim. See our Chargeback guide → for full details on the chargeback process.

How to Make a Section 75 Claim

To make a Section 75 claim: Step 1 — contact the supplier first and try to resolve the issue directly. Keep records of all communication. If the supplier is in administration or refuses to help, move to Step 2. Step 2 — contact your credit card provider (the lender, e.g. Barclaycard, Lloyds, Santander, Amex, MBNA, Virgin Money). Write a formal letter or email stating you are making a Section 75 claim under the Consumer Credit Act 1974. Include: your name, card number (last 4 digits), the transaction date and amount, the supplier's name and contact details, a description of the issue, the amount you want to reclaim, and supporting evidence (receipts, photos, emails with the supplier). Step 3 — the card provider must acknowledge your claim and investigate. They have 8 weeks to respond. If they reject your claim, they must explain why. Step 4 — if rejected, escalate to the Financial Ombudsman Service (FOS) within 6 months of the final response. The FOS can review the case and order the card provider to pay up to £430,000. Step 5 — as a last resort, you can take the card provider to the small claims court. The court can enforce Section 75 as a legal right. For straightforward claims, the court fee is £35–£455 depending on the amount. Many credit card providers settle quickly once a claim is made — the key is to persist and use the correct legal terminology ("Section 75 claim").

Time Limits and Exclusions

The time limit for a Section 75 claim is 6 years from the breach of contract (5 years in Scotland). This differs from credit card chargeback, which has much shorter windows (typically 120 days). However, you should start with the supplier first, then contact the card provider as soon as you know there is a problem. The 6-year window means you can claim for purchases made some time ago. For example, if you discovered a fault on a 3-year-old sofa, you can still claim if the fault was present at the time of purchase. Important exclusions: Breach of contract must exist — you cannot claim simply because you changed your mind. The goods or services must be faulty, misdescribed, not as advertised, or not provided. Intermediary purchases — if you paid through PayPal (where PayPal is the intermediary) or similar payment platforms, the legal position is complex. The Supreme Court in FSCS v Hegarty suggested Section 75 may not apply if the payment was made to an intermediary rather than the supplier. However, the FCA has confirmed it depends on the arrangement. Business purchases — if you bought the item wholly or predominantly for business purposes, Section 75 may not apply, but the Consumer Rights Act 2015 may still protect you. Gnomes and other small items — the £100 minimum means that individually cheap items bought together do not qualify unless each item costs over £100.

Claim Examples by Scenario

Scenario 1: Holiday company goes bust — You booked a £1,500 holiday with a tour operator and paid a 20% deposit (£300) on your credit card. The operator goes into administration before you travel. Your credit card provider must refund the full £1,500 (not just the £300 deposit) because the total contract value was over £100 — Section 75 applies to the entire contract. Scenario 2: Faulty sofa — You bought a £1,200 sofa from DFS and paid the full amount on credit card. Six months later, the sofa frame cracks. DFS refuses to repair. Your credit card provider is jointly liable for the breach of contract (the sofa was not of satisfactory quality). Claim the full £1,200. Scenario 3: Building work not completed — You paid a builder £5,000 for a kitchen renovation, of which £1,000 was paid by credit card and £4,000 by bank transfer. The builder abandons the project. You can claim the full £5,000 under Section 75 because the total cost exceeds £100 and you made a part-payment on the card. Scenario 4: Car with hidden fault — You bought a used car from a dealer for £8,500, paying £500 deposit on credit card and £8,000 by bank loan. The car has a serious engine fault the dealer did not disclose. Section 75 covers the full £8,500 — your credit card provider is jointly liable for the misrepresentation. Scenario 5: Flight delay — You booked flights costing £450 on your credit card. The flight is cancelled and the airline refuses to refund. Section 75 applies because the airline failed to provide the service — claim the £450.

FAQs

Does Section 75 cover debit card purchases?

No. Section 75 only covers credit card purchases. Debit card purchases are protected by chargeback (for Visa and Mastercard debit cards) but not by Section 75. This is one key reason to use a credit card for purchases over £100.

What if I only paid a deposit on my credit card?

You are protected for the full purchase price as long as the item cost £100–£30,000 and you paid any part of it (even as little as £1) on a credit card. The card provider is jointly liable for the entire contract value.

Can I claim for a purchase made abroad?

Yes. Section 75 applies to purchases made anywhere in the world, as long as the credit card provider is UK-regulated and the purchase meets the £100–£30,000 criteria.

What happens if the card provider rejects my Section 75 claim?

You can escalate to the Financial Ombudsman Service (free of charge) within 6 months of the final response. If the FOS rejects it, you can take the card provider to the small claims court.

Does Section 75 cover PayPal transactions?

It depends. If you paid a supplier directly via PayPal (where PayPal is just the processor), Section 75 applies. If you paid PayPal as the intermediary (e.g. PayPal Credit), the legal position is less clear. Check with your card provider.