Consumer Credit Act & Section 75: How do they protect your credit card purchases?

What is the Consumer Credit Act 1974?

The Consumer Credit Act 1974 is a law that protects the rights of consumers. It sets out how retail lending and credit is handled in the UK, and outlines your rights when you borrow money.

The Act regulates the following types of debt and credit:

  • Credit cards
  • Store cards
  • Store finance
  • Payday loans
  • Personal loans
  • Hire purchase
  • Catalogues

What does section 75 cover?

Section 75 of the Consumer Credit act offers you extra protection if you buy goods or services on a credit card. The product or service you're buying must have a contract value over £100 and no more than £30,000. But, if you have only paid a deposit you'll still be covered for the contract value.

Under section 75, the credit card company is jointly liable for any breach of contract or misrepresentation by the retailer or trader. For example, if you buy goods or services on credit and later find out they are faulty, you can put your claim to the credit card company to get your money back.

This is particularly useful if the retailer or trader has ceased to trade, or if it doesn't respond to your letters or phone calls.

Section 75 of the Consumer Credit Act also covers foreign transactions as well as goods bought online, by telephone or mail order for delivery to the UK from overseas.

What is not covered in section 75?

If you have paid for your purchase in full with a debit card, charge card or cash transaction (even if you draw the cash out from your credit card account) you are not covered. The same applies to credit provided under an overdraft or bank loan.

If you use a debit card, you may be able to use chargeback to get some or all of your money back.

Payments made through an agent or third party may not be covered under section 75, so you should always try to make credit card payments directly to the company actually supplying the goods or services.

Need to dispute a M&S Bank transaction? Find out more.

How to claim back on your credit card under section 75

Before you decide to make a section 75 claim, you should attempt to resolve your dispute with the retailer. If this doesn't work, you can contact your credit card provider.

Be prepared to provide as much detail as possible about the transaction, including proof of purchase. It's always a good idea to hold on to your receipts for evidence.

Find out more about the credit cards M&S Bank offer.

Published December 2022