Section 75 Claims Explained: How to Get Money Back on Card Purchases

If you paid for something on a credit card and the company went bust, never delivered, or the goods turned out to be faulty or misdescribed, you may have a powerful legal right most people never use. It is called Section 75 of the Consumer Credit Act 1974, and in the right circumstances it makes your credit card provider equally liable with the retailer for putting things right. That means you can claim from the bank even when the shop has vanished.

This guide explains exactly when Section 75 applies, the crucial price thresholds, how it differs from chargeback, and how to actually make a claim that gets paid.

What Section 75 actually gives you

Section 75 creates what lawyers call "joint and several liability". When you buy goods or services on credit, the law treats your card provider as standing behind the seller. If the seller breaches the contract or misrepresents what they are selling, you can pursue the card company for the same claim you would have against the trader.

The key practical advantages over other routes:

• The card company is liable even if the retailer goes bankrupt. This is the single biggest reason Section 75 matters — administrators rarely pay unsecured customers anything.
• It is a statutory legal right, not a goodwill scheme. The bank cannot simply refuse because it does not feel like paying.
• You can claim consequential losses, not just the purchase price. If a faulty appliance causes damage, or a cancelled service forces you to rebook at higher cost, those losses can be in scope.
• There is no strict short deadline like chargeback has. A Section 75 claim is a contract claim, so the general limitation period applies (six years in England, Wales and Northern Ireland; five years in Scotland).

The 100 to 30,000 pound rule

Section 75 only applies to a single item or service with a cash price of more than 100 pounds and no more than 30,000 pounds. The thresholds are about the price of the goods or service, not how much you put on the card.

Two points trip people up constantly:

• The lower limit is "more than 100", not "100 or more". An item priced at exactly 100 pounds is not covered. It needs to be at least 100.01 pounds.
• You do not have to pay the whole amount on the card. If you put down even a small deposit on the card and paid the rest by other means, the entire claim can still be covered, provided the single item's cash price falls inside the range. For example, paying a 200 pound deposit by credit card on a 5,000 pound kitchen means the full 5,000 pound claim is potentially in scope.

What does not count: splitting a big purchase into several sub-100 items to dodge the lower limit will not help you, and conversely a genuinely single item over 30,000 pounds falls outside Section 75 entirely (though related rights may exist for some finance agreements).

When Section 75 applies — and when it does not

For a valid claim, three things generally need to line up:

1. You used a credit facility. Section 75 covers credit cards, store cards and certain point-of-sale credit. It does not cover debit cards or prepaid cards — those rely on chargeback instead.
2. The price falls in the 100.01 to 30,000 pound band for the single item or service.
3. There is a "debtor-creditor-supplier" chain. In plain terms, you (the debtor) must have paid the supplier directly with the card.

That third point is where many claims fail. If a third party sits between you and the supplier — a payment processor or marketplace that is treated as the merchant — the direct link can be broken. The most cited example is buying through certain third-party payment intermediaries; HM Treasury and the courts have looked at this, and the position can be fact-specific. Where you book through an agent rather than the principal supplier, protection can also be weaker.

Common situations where Section 75 helps

• An airline or tour operator collapses and your flight or holiday does not happen.
• A sofa, kitchen or other big-ticket item is never delivered after the firm folds.
• Goods arrive faulty, not as described, or counterfeit, and the seller will not engage.
• A wedding photographer, builder or other service provider takes a deposit and disappears.
• A car (under 30,000 pounds, deposit on card) turns out to have an undisclosed serious fault amounting to a breach of contract.

Situations where it usually does not

• You paid by debit card — use chargeback instead.
• The item cost 100 pounds or less, or a single item cost more than 30,000 pounds.
• You simply changed your mind (that is a returns/Consumer Contracts Regulations matter, not a breach).
• You used a card to fund a third-party wallet or marketplace balance first, then spent from that balance — the direct supplier link may be lost.
• Cash withdrawals, balance transfers, and money sent to family or friends.

Section 75 vs chargeback: which to use

People often confuse the two. They are completely different mechanisms. Chargeback is a card-scheme rule (Visa, Mastercard, Amex), not a law; it works by reversing the transaction through the banking network. Section 75 is a statutory legal right against your lender.

Feature	Section 75	Chargeback
Legal basis	Consumer Credit Act 1974 (the law)	Card scheme rules (voluntary)
Card types	Credit cards, store cards, some POS credit	Credit and debit cards
Price limits	Over 100, up to 30,000 pounds	No fixed limits
Time limit	Up to 6 years (5 in Scotland)	Typically 120 days from issue/expected delivery
Covers consequential loss?	Yes, potentially	Usually limited to the transaction amount
Works if retailer insolvent?	Yes — bank is jointly liable	Often harder; depends on scheme and funds

Rule of thumb: if you paid by credit card and the purchase is over 100 pounds, lead with Section 75 because it is the stronger right. If you paid by debit card, or the item was 100 pounds or less, chargeback is your main option. There is nothing wrong with attempting chargeback first for speed and keeping Section 75 in reserve if it is refused or partial.

How to make a Section 75 claim

Section 75 claims go to your card provider (the bank or lender), not the card scheme and not the retailer. Here is a practical sequence.

1. Try the retailer first if it still exists. Give them a fair chance to repair, replace or refund. Keep this brief if they are unresponsive or insolvent.
2. Gather evidence. The card statement showing the payment, the order confirmation or contract, photos of faulty goods, emails, and proof the service was not provided. For a collapsed firm, a screenshot or news report of the insolvency helps.
3. Contact your card provider and state clearly that you are making a "Section 75 claim". Use those words. Set out the breach of contract or misrepresentation, the amount, and what you want.
4. Put it in writing. Even after a phone call, follow up in writing or via the bank's complaints form so there is a record and a clock starts on their response.
5. Wait for a decision. The provider should investigate. If they need more, they will ask; respond promptly.
6. If they reject it unfairly or do not respond within eight weeks, escalate to the Financial Ombudsman Service. The FOS is free, independent, and can order the lender to pay. This is your enforcement route and it is genuinely effective.

A short, factual claim letter works best. State the date, the supplier, the amount, what went wrong, why it is a breach of contract or misrepresentation, that the price falls within Section 75 limits, and the remedy you want.

Worked example

Suppose you paid a 300 pound deposit by credit card towards a 2,400 pound fitted wardrobe, with the balance due on installation. The company goes into administration before fitting anything. The single item's cash price (2,400 pounds) is within the 100 to 30,000 pound band, you used a credit card, and you paid the supplier directly. Even though only 300 pounds went on the card, you can claim the full 2,400 pounds from your card provider under Section 75, because it is jointly liable for the supplier's breach. If you also had to pay a higher price elsewhere to get the work done, those reasonable extra costs may be claimable too.

FAQ

Does Section 75 apply to things bought abroad?

Yes. Purchases made overseas on a UK credit card can still be covered, provided the other conditions are met. This makes it valuable for holidays and online orders from foreign sellers.

What if I used PayPal or a similar service?

It depends on how the payment is structured. If your credit card pays the supplier through the service as a direct transaction, protection may survive; if you first loaded a balance and then paid from it, the direct link can be broken and Section 75 may not apply. Chargeback may still be available.

Can I claim on an additional cardholder's purchase?

Generally the claim belongs to the main cardholder (the borrower under the credit agreement), even if an additional cardholder made the purchase. Make the claim in the main account holder's name.

Is there a fee or downside to claiming?

No fee. Making a legitimate Section 75 claim does not harm your credit file. Escalating to the Financial Ombudsman is also free.

How long does it take?

Straightforward claims may be resolved in a few weeks. Disputed or complex ones can take longer, and an Ombudsman referral adds more time but costs nothing.

The bottom line

Section 75 is one of the strongest consumer protections in UK law, and it is widely underused. If you paid more than 100 pounds (and up to 30,000 pounds) on a credit card and the seller broke the deal or went under, your card provider is on the hook alongside them. Lead with Section 75 for credit card purchases, keep chargeback in your back pocket for debit cards and smaller amounts, and do not be afraid to take a rejection to the Financial Ombudsman.

This article is general information from the Owedly editorial team, published by NexoraOS. It is not professional, financial or legal advice; consider your own circumstances or seek advice for your specific situation.