How to Make a Consumer Credit Claim

You have free protection for credit card purchases – and probably didn’t know it

If you’ve been scammed online, it can be a stressful experience. Act quickly by contacting your bank or financial institution to report the fraud and block further transactions. Don’t forget to report the scam to relevant authorities such as the police or Action Fraud.

Remember, prevention is better than cure. Follow the tips and advice in this article to reduce your risk of falling victim to online scams and keep your personal information and finances safe.

If you have any concerns or questions about online scams or fraud, don’t hesitate to contact our team of experts at ClaimsRefund.com. We’re here to help you stay informed and protected in today’s ever-changing digital landscape.

What is Section 75, and how can it help me?

Section 75 is a crucial consumer protection law in the UK, dating back to the widespread use of credit cards in the 1970s. It ensures that your credit provider shares the same responsibility as the retailer if any issues arise with a purchase. However, it only applies to certain purchases within a specific price range.

With Section 75, if you use your credit card, store card, or store instalment credit to pay for something over £100 and less than £30,000, the lender becomes equally liable alongside the retailer if any problems occur.

This legal protection is not just a gesture of goodwill from the credit provider. It was put in place to avoid situations where you have to pay off a debt for an item or service that you didn’t receive or was not as expected. Whether it’s a flight, kitchen, computer, or anything else, as long as you make even a tiny payment using a credit card or related credit options, the credit provider is also responsible for the full cost of the item.

ALWAYS USE YOUR CREDIT CARD

Did you know that the law grants you full protection for an item or service, even if you only pay for a portion using credit? As long as your purchase exceeds £100 but doesn’t exceed £30,000 in total, you’ll be covered for the entire amount. This means that even if you only use your credit card to pay a small fraction of the cost, you’re still entitled to full protection.

What is covered by Section 75

• Made your purchase using a store card, store instalment credit, or PayPal Credit
• Using your credit card through Apple Pay or Google Pay also qualifies
• If you used PayPal credit
• If you used your credit card to make online, mail order, phone, or holiday purchases from another country or when in another country
• You are protected if you used credit to buy something that arrived but is not as described (online, catalogue or phone purchase).
• If your purchase doesn’t arrive or the seller has gone out of business.
• If you used your credit card for online, mail order, phone, or holiday purchases from other countries.
• When you purchase from ticket sites that are the exclusive vendors, such as concert venues.
• If associated costs are incurred related to cancelled events, such as hotel or train tickets.
• If you used a credit card to pay for an item valued between £100.01 and £30,000, even if the deposit is as little as 1p.

What is not covered by Section 75 when:

• Purchasing multiple individual items that total between £100 and £30,000
• Buying from a third-party seller, such as a travel agent or Amazon Marketplace
• Making a payment with a debit card (though chargeback may still be possible)
• Using cash withdrawn with a credit card for a purchase
• Purchasing a hire purchase agreement (separate protection scheme may apply)

Debit Cards

If you’ve ever wondered about the protection offered by Section 75, we’ve got the answer. First, Section 75 only applies to credit cards, not debit or charge cards. But don’t worry, if you’re using a debit card, there’s still hope. You can use chargeback instead to get back some or all of your money potentially. For all the details, check out our comprehensive guide on the chargeback system.

Paypal

Did you know using PayPal for transactions may affect your Section 75 protection? Some argue that involving another party in the process can diminish this safeguard.

However, there is a loophole. If you pay for a purchase using your credit card through PayPal, and the funds go directly to the seller, you may still be able to claim your credit card company. There’s a catch, though – the company you’re buying from must have a ‘Commercial Entity Agreement’ with PayPal.

You should be aware that PayPal offers its buyer protection scheme known as PayPal Buyer Protection. It’s worth checking if your issue with the purchase is covered under this scheme.

If you want to ensure you’re fully protected under Section 75, paying the trader directly with your credit card is best.

Payments through a third-party

When making a payment, it is not uncommon for a business to act as an agent for the supplier. In such cases, Section 75 may not be applicable, and you may be unable to claim your credit card provider.

A prime example of this is when purchasing concert tickets. If you buy them directly from the venue and the cost exceeds £100, Section 75 may apply. However, this protection may be unavailable if you buy them through a ticket agency.

The card provider may argue that Section 75 doesn’t apply since the payment was not made directly to the supplier of the goods or services.

Therefore, it is recommended to make credit card payments directly to the company providing the goods or services whenever possible.

Start Your Claim

It is easy to start your claim with us. Complete the form on our website for a no-obligation discussion about your situation, and find out if you are eligible to claim.

It is useful to have key information to hand when you call, such as dates, but we can talk you through everything that is needed. If you have a valid claim and want to go ahead, we can start your claim immediately.

The claims process is very straightforward. Simply fill in our form and ClaimsRefund.com will contact you to discuss. Get in touch today!