Introduction
When something goes wrong with a purchase, many consumers assume their only option is to pursue the retailer.
However, if you paid using certain types of credit card, you may have additional legal protection under Section 75 of the Consumer Credit Act 1974.
Section 75 can make the credit card provider jointly responsible with the supplier if there has been a breach of contract or a misrepresentation. In the right circumstances, this means you may be able to seek compensation from your card provider instead of—or as well as—the retailer.
This protection has helped consumers recover money where businesses have refused refunds, supplied faulty goods, failed to deliver products or even ceased trading before fulfilling their obligations.
Although Section 75 is a valuable consumer protection, it does not apply to every purchase or every payment method. Understanding when it applies, what can be claimed and how the process works can help you decide the most appropriate course of action.
This guide explains Section 75 in plain English, including who is protected, when it applies, how to make a claim and what happens if your claim is rejected.
At a Glance
Area of Law: Consumer Law
Applies to: England and Wales (and throughout the UK under the Consumer Credit Act 1974)
Relevant legislation:
- Consumer Credit Act 1974
- Consumer Rights Act 2015 (where applicable)
Commonly used for:
- Faulty goods
- Goods that never arrive
- Services not provided
- Holiday bookings
- Builder disputes
- Furniture purchases
- Electrical goods
- Online shopping
Purpose:
To provide consumers with additional protection when qualifying purchases are made using a credit card.
What Is Section 75?
Section 75 is a provision within the Consumer Credit Act 1974 that can make a credit card provider jointly responsible for certain problems arising from a purchase.
This means that, in appropriate circumstances, the consumer may have a legal claim against:
- the supplier;
- the credit card provider; or
- both.
This is known as joint and several liability.
The consumer does not necessarily have to pursue the retailer before contacting the credit card provider.
Why Does Section 75 Exist?
Section 75 was introduced to give consumers greater protection when purchasing goods and services on credit.
Without this protection, consumers could be left out of pocket if:
- a retailer stopped trading;
- goods were never supplied;
- services were not provided;
- the supplier refused to resolve a legitimate complaint.
By making the credit provider jointly responsible in qualifying cases, the law provides an additional route for consumers to seek redress.
How Does Section 75 Work?
Where Section 75 applies, the credit card provider shares legal responsibility for certain failures by the supplier.
For example, if a retailer breaches the contract by failing to supply goods or supplying faulty goods, the consumer may be able to pursue the card provider for compensation.
Likewise, if the consumer entered into the contract because of a misrepresentation by the supplier, Section 75 may also apply.
The exact outcome will depend on the facts of the individual case.
What Does “Joint and Several Liability” Mean?
Joint and several liability means that more than one party may be legally responsible for the same loss.
For Section 75 purposes, this generally means the consumer may choose to pursue:
- the retailer;
- the credit card provider; or
- both.
The law does not normally require the consumer to exhaust all remedies against the retailer before making a Section 75 claim.
Which Purchases Can Be Covered?
Section 75 may apply where certain legal requirements are met.
These generally include:
- the purchase was made using qualifying credit;
- the cash price of the item or service falls within the statutory limits;
- there has been a breach of contract or a misrepresentation;
- the necessary legal relationship exists between the consumer, the credit provider and the supplier.
Each claim depends on its own facts.
Meeting one requirement does not automatically mean Section 75 will apply.
What Types of Problems Can Section 75 Cover?
Depending on the circumstances, Section 75 may assist where:
- goods are faulty;
- goods never arrive;
- services are not provided;
- a trader goes out of business;
- a supplier refuses to honour the contract;
- misleading statements induced the purchase.
The key question is usually whether there has been a breach of contract or a misrepresentation.
Examples of Purchases
Section 75 is commonly associated with purchases such as:
- household appliances;
- furniture;
- holidays;
- flights;
- kitchens;
- bathrooms;
- building work;
- electronic devices;
- online purchases.
Whether protection applies depends on the particular facts rather than the type of product alone.
Does It Apply to Services?
Yes.
Section 75 is not limited to physical goods.
It may also apply to qualifying services, including situations where:
- work is not completed;
- services are provided negligently;
- bookings are cancelled without proper performance;
- contractors fail to fulfil their contractual obligations.
As with goods, the circumstances of each case will determine whether a valid claim exists.
Is Section 75 the Same as a Refund?
No.
Section 75 is a legal protection rather than an automatic refund scheme.
The consumer must usually demonstrate that the legal requirements have been met.
Simply being unhappy with a purchase does not automatically create a successful Section 75 claim.
Should You Contact the Retailer First?
Although you may be able to approach the credit card provider directly, it is often sensible to raise the issue with the retailer first.
Many disputes can be resolved without making a formal Section 75 claim.
Keeping copies of:
- emails;
- complaint letters;
- receipts;
- photographs;
- inspection reports;
- correspondence,
can also provide useful evidence if a claim later becomes necessary.
Why Good Evidence Matters
As with any consumer dispute, evidence is important.
Useful evidence may include:
- proof of purchase;
- credit card statements;
- invoices;
- contracts;
- photographs;
- emails;
- expert reports;
- delivery records.
The stronger your evidence, the easier it is to explain why you believe Section 75 applies.
Common Misunderstandings
Many people mistakenly believe:
- every card payment is protected;
- debit cards are covered in the same way;
- any faulty purchase automatically qualifies;
- the retailer must be sued first;
- Section 75 guarantees compensation.
None of these assumptions is necessarily correct.
Whether Section 75 applies depends on the legal requirements and the individual facts of the purchase.
Who Can Make a Section 75 Claim?
Section 75 protection is generally available to consumers who use a qualifying credit agreement to make an eligible purchase.
The person making the claim will usually be:
- the credit card holder;
- a party to the credit agreement; and
- someone who has suffered a loss because of a breach of contract or misrepresentation.
Whether a claim succeeds depends on the individual circumstances and the legal requirements being met.
Which Payment Methods Are Covered?
Section 75 most commonly applies to purchases made using a credit card.
It does not automatically apply simply because a card was used.
The protection depends on the type of credit agreement and whether the statutory requirements are satisfied.
If you are unsure whether your payment qualifies, it is sensible to check the terms of your credit agreement or contact your card provider.
Does Section 75 Apply to Debit Cards?
No.
Debit cards are not covered by Section 75 because they do not involve the type of credit agreement required by the Consumer Credit Act 1974.
However, some debit card purchases may qualify for chargeback, which is a separate process operated under card scheme rules rather than legislation.
Chargeback works differently and has its own eligibility requirements.
What Purchase Values Are Covered?
Section 75 only applies where the cash price of the goods or services falls within the limits set by the Consumer Credit Act 1974.
At the time of writing, the cash price must be:
- more than £100; and
- not more than £30,000.
It is the cash price of the individual item or service that matters, not necessarily the amount charged to the credit card.
For example, paying only a deposit on a qualifying purchase using a credit card may still provide Section 75 protection if the statutory requirements are met.
Does the Whole Purchase Need to Be Paid by Credit Card?
Not necessarily.
In some cases, paying only part of the purchase price with a qualifying credit card may still allow Section 75 to apply.
For example, a consumer may pay:
- a deposit by credit card; and
- the remaining balance by another method.
Whether protection applies depends on the overall circumstances and whether the legal requirements are satisfied.
What Does “Cash Price” Mean?
The cash price is the total price of the goods or services being purchased.
This is important because the statutory limits apply to the value of the purchase itself rather than the amount charged to the credit card.
For example:
- An item costing £150 may qualify even if only a £20 deposit was paid by credit card.
- An item costing £90 would not normally qualify under Section 75, even if the full amount was paid by credit card.
Does Section 75 Cover Overseas Purchases?
It can.
Section 75 may apply to qualifying purchases made from suppliers based outside the United Kingdom, provided the legal requirements are met.
Many consumers successfully use Section 75 when problems arise with:
- overseas retailers;
- holiday providers;
- international online purchases.
Whether protection applies depends on the particular facts of the transaction.
Can Online Purchases Be Covered?
Yes.
Many online purchases made using a qualifying credit card may benefit from Section 75 protection.
For example:
- household appliances;
- furniture;
- electronics;
- travel bookings;
- digital services;
- home improvements.
The fact that the purchase was made online does not prevent Section 75 from applying.
Does Section 75 Cover Services?
Yes.
Section 75 is not limited to physical goods.
It may also apply where qualifying services have not been provided as agreed.
Examples include:
- building work;
- fitted kitchens;
- holiday bookings;
- hotel accommodation;
- professional services;
- event bookings.
The question is whether there has been a breach of contract or a misrepresentation.
Can It Cover Faulty Goods?
Potentially, yes.
If goods are faulty and this amounts to a breach of contract, Section 75 may provide an additional route for seeking compensation.
Examples might include:
- defective electrical appliances;
- faulty furniture;
- defective building materials;
- damaged household goods.
Evidence of the fault will usually be important.
What If the Retailer Has Closed Down?
One of the best-known advantages of Section 75 is that it may still provide protection even if the retailer has ceased trading.
Where the legal requirements are met, consumers may be able to pursue the credit card provider despite the supplier no longer being available.
This is one reason why Section 75 is regarded as an important consumer protection.
What Is the “Debtor–Creditor–Supplier” Relationship?
For Section 75 to apply, there must usually be a direct legal relationship between:
- the consumer (the debtor);
- the credit provider (the creditor); and
- the business supplying the goods or services (the supplier).
This is sometimes referred to as the debtor–creditor–supplier relationship.
If that relationship is broken, Section 75 may not apply.
When Might That Relationship Be Broken?
The position can become more complicated where payment is made through an intermediary.
Examples may include:
- certain online payment services;
- some digital wallets;
- third-party payment processors.
Whether Section 75 applies in these situations depends on how the transaction was structured.
Because the legal position can vary, each case should be assessed on its own facts.
Does Section 75 Apply to Supplementary Cardholders?
A supplementary card allows another person to use the account held by the primary cardholder.
Whether Section 75 protection applies in these circumstances depends on the legal relationship between the parties and the transaction itself.
As with other claims, the individual facts will be important.
Situations Where Section 75 May Not Apply
Section 75 does not cover every purchase.
Examples where it may not apply include:
- purchases below the statutory minimum cash price;
- purchases above the statutory maximum cash price;
- payments made using debit cards;
- transactions that do not meet the legal requirements of the Consumer Credit Act;
- situations where there has been no breach of contract or misrepresentation.
A careful assessment of the facts is often necessary before concluding whether Section 75 protection is available.
Section 75 and Chargeback Are Different
Consumers often confuse Section 75 with chargeback.
Although both may help recover money in appropriate circumstances, they are different.
Broadly speaking:
- Section 75 is a legal right created by legislation.
- Chargeback is a voluntary scheme operated under card network rules.
Depending on the circumstances, one or both options may be available.
Understanding Whether You Qualify
Before making a Section 75 claim, consider:
- Was a qualifying credit card used?
- Was the cash price between the statutory limits?
- Has there been a breach of contract or a misrepresentation?
- Is the necessary legal relationship in place?
- Do you have evidence supporting your claim?
Answering these questions can help you decide whether Section 75 may apply to your purchase.
How to Make a Section 75 Claim
If you believe Section 75 applies to your purchase, the first step is usually to contact your credit card provider and explain what has happened.
Many card providers allow claims to be made:
- online;
- by telephone;
- by post; or
- through secure online banking.
The process may vary between providers, but the information requested is often similar.
Should You Contact the Retailer First?
Although you are not normally required to pursue the retailer before making a Section 75 claim, it is often sensible to try to resolve the matter directly first.
Many disputes can be settled without involving the card provider.
You should consider:
- explaining the problem clearly;
- giving the retailer an opportunity to resolve the issue;
- keeping copies of all correspondence;
- allowing a reasonable time for a response.
If the retailer refuses to help, ignores your complaint or has ceased trading, a Section 75 claim may become an appropriate next step.
Gather Your Evidence
A successful Section 75 claim usually depends upon the evidence available.
Before contacting your card provider, it is helpful to gather documents that support your claim.
These may include:
- the purchase receipt;
- invoices;
- the credit card statement showing payment;
- the contract or order confirmation;
- photographs of faulty goods;
- expert inspection reports where appropriate;
- delivery information;
- emails;
- complaint letters;
- responses from the retailer.
Providing organised evidence at an early stage can make it easier for the card provider to understand your claim.
Explain What Went Wrong
When making your claim, explain the facts clearly and chronologically.
For example:
- what you purchased;
- when you purchased it;
- how much it cost;
- how you paid;
- what has gone wrong;
- what steps you have already taken;
- what outcome you are seeking.
Avoid emotional language where possible.
A clear explanation supported by evidence is generally more persuasive.
Identify the Legal Issue
Section 75 is concerned with legal responsibility.
Your claim should explain why you believe there has been either:
- a breach of contract;
- a misrepresentation; or
- both.
For example:
- the goods were never delivered;
- the goods were faulty;
- the services were not carried out;
- the supplier failed to complete the work agreed;
- misleading information persuaded you to enter into the contract.
What Can You Ask For?
Depending on the circumstances, you may seek recovery of losses resulting from the supplier’s breach of contract or misrepresentation.
The appropriate remedy will depend on the facts of your case.
Examples may include:
- repayment of the purchase price;
- reimbursement of deposits;
- compensation for financial loss arising from the breach, where legally recoverable.
The outcome will vary depending on the evidence and the applicable law.
What Happens After You Submit a Claim?
Once your claim has been received, the credit card provider will usually begin investigating the matter.
This may involve:
- reviewing your documents;
- contacting the supplier;
- requesting additional information;
- considering whether the legal requirements of Section 75 have been satisfied.
Every provider has its own procedures, so timescales can vary.
Will the Card Provider Contact the Retailer?
In many cases, yes.
The card provider may contact the retailer to obtain its version of events before reaching a decision.
This is a normal part of the investigation and does not necessarily indicate that your claim will be accepted or rejected.
How Long Does a Section 75 Claim Take?
There is no fixed timescale.
The length of an investigation will depend upon factors such as:
- the complexity of the dispute;
- the amount of evidence involved;
- whether further information is required;
- whether the retailer disputes the claim.
Some claims are resolved relatively quickly, while others may take longer.
Respond Promptly to Requests
During the investigation, your card provider may ask for additional information.
Responding promptly can help avoid unnecessary delays.
If you are unable to provide a document, explain why and supply any alternative evidence that may assist.
What If Your Claim Is Successful?
If your claim is accepted, the card provider may provide an appropriate remedy based on the circumstances of the case.
This could include reimbursing qualifying losses or taking other steps consistent with its legal obligations.
The exact outcome will depend on the individual claim.
What If Your Claim Is Rejected?
A rejected claim does not always mean the matter is at an end.
You should first read the decision carefully to understand why the claim was refused.
Sometimes additional evidence or clarification may address the issues raised.
Can You Challenge the Decision?
Yes.
If you believe the decision is incorrect, you may wish to ask the card provider to review the matter.
Explain why you disagree with the decision and provide any additional supporting evidence.
Keeping your response factual and well organised is usually the most effective approach.
Making a Complaint
If you remain dissatisfied with how your card provider has handled your Section 75 claim, you may be able to make a formal complaint using the provider’s complaints procedure.
The provider will usually investigate the complaint and provide a final response.
The Financial Ombudsman Service
If your complaint cannot be resolved with the card provider, you may, in appropriate circumstances, be able to refer the matter to the Financial Ombudsman Service.
The Ombudsman considers disputes between consumers and financial businesses and may review whether the complaint has been handled fairly and in accordance with the relevant legal and regulatory framework.
Whether a complaint is upheld will depend on its individual facts.
Common Mistakes to Avoid
Consumers sometimes weaken their own claims by making avoidable mistakes.
Examples include:
- failing to keep receipts;
- deleting important emails;
- not giving the retailer an opportunity to respond;
- providing incomplete information;
- misunderstanding the Section 75 requirements;
- assuming every credit card purchase is covered;
- confusing Section 75 with chargeback.
Taking time to prepare your claim carefully can improve the quality of the information provided to the card provider.
Practical Tips
If you are considering making a Section 75 claim:
- keep copies of every document;
- maintain a timeline of events;
- communicate in writing where possible;
- remain polite and factual;
- respond promptly to requests for information;
- retain copies of all correspondence received.
Good record-keeping often makes disputes easier to understand and resolve.
If Court Action Is Also Being Considered
In some cases, consumers may also be considering legal action against the supplier.
Whether pursuing a Section 75 claim, court proceedings or another form of dispute resolution is the most appropriate option will depend on the circumstances of the case.
Understanding the available options can help you make an informed decision about how best to pursue your claim.
Practical Examples
The following examples illustrate how Section 75 may operate in practice. Every claim depends on its own facts and whether the legal requirements are met.
Example 1 – Faulty Washing Machine
A consumer purchases a washing machine costing £650 using a credit card.
Shortly after delivery, the appliance develops a serious fault. The retailer refuses to repair or replace it despite being given the opportunity to do so.
The consumer contacts their credit card provider and submits evidence of the purchase, the fault and their correspondence with the retailer.
If the card provider concludes that there has been a breach of contract and the requirements of Section 75 are met, the consumer may be entitled to an appropriate remedy.
Example 2 – Builder Ceases Trading
A homeowner pays a £500 credit card deposit towards a £12,000 kitchen installation.
Before the work begins, the builder stops trading and cannot be contacted.
Although only the deposit was paid by credit card, the cash price of the contract falls within the statutory limits.
Depending on the circumstances, Section 75 may provide a route for the consumer to seek recovery from the credit card provider.
Example 3 – Holiday Cancelled
A family books a holiday using a qualifying credit card.
The travel company cancels the booking but fails to provide the agreed refund.
After unsuccessful attempts to resolve the matter directly, the consumer makes a Section 75 claim with their card provider.
The provider considers whether there has been a breach of contract and whether Section 75 protection applies.
Frequently Asked Questions
What is Section 75?
Section 75 is a provision of the Consumer Credit Act 1974 that may make a credit card provider jointly responsible with the supplier where there has been a breach of contract or a misrepresentation.
Does Section 75 apply automatically?
No.
You will usually need to make a claim and provide evidence that the legal requirements have been met.
Does it cover debit cards?
No.
Section 75 applies to qualifying credit agreements rather than debit card payments.
Is chargeback the same as Section 75?
No.
Section 75 is a statutory legal protection.
Chargeback is a voluntary scheme operated under card network rules.
What are the purchase value limits?
At the time of writing, the cash price of the goods or services must be more than £100 and not more than £30,000.
Does the whole purchase have to be paid on a credit card?
Not necessarily.
In some circumstances, paying only part of the purchase price by qualifying credit card may still provide Section 75 protection.
Can Section 75 cover deposits?
Yes.
If the statutory requirements are met, paying a qualifying deposit by credit card may still provide protection for the purchase.
Does Section 75 apply to online shopping?
Yes.
Many online purchases may qualify provided the legal requirements are satisfied.
Can overseas purchases be covered?
Potentially, yes.
Section 75 may apply to qualifying overseas transactions depending on the circumstances.
Does it apply to services?
Yes.
Section 75 may cover qualifying services as well as goods.
What if the retailer has gone out of business?
Section 75 may still apply where the supplier has ceased trading, provided the legal requirements are met.
Can I claim for faulty goods?
Potentially.
If faulty goods amount to a breach of contract, Section 75 may provide an additional route for seeking compensation.
What evidence should I provide?
Useful evidence may include:
- receipts;
- invoices;
- contracts;
- photographs;
- emails;
- expert reports;
- card statements;
- complaint correspondence.
How long does a claim take?
There is no fixed timescale.
The duration will depend on the complexity of the claim and the card provider’s investigation.
Do I need to contact the retailer first?
Not necessarily.
However, attempting to resolve the dispute directly is often sensible and may help if a Section 75 claim later becomes necessary.
What if my claim is rejected?
You should read the reasons carefully.
If appropriate, you may provide additional evidence, ask the card provider to review its decision or make a formal complaint.
Can I complain about the card provider?
Yes.
If you are dissatisfied with how your claim has been handled, you may use the provider’s complaints procedure.
Can the Financial Ombudsman Service help?
In appropriate circumstances, disputes between consumers and financial businesses may be referred to the Financial Ombudsman Service after the provider has had the opportunity to deal with the complaint.
Is there a time limit for making a Section 75 claim?
Time limits can depend on the circumstances of the claim and the applicable law.
If you believe you may have a claim, it is generally sensible not to delay.
Does Section 75 guarantee compensation?
No.
Whether a claim succeeds depends on the individual facts, the available evidence and whether the legal requirements have been satisfied.
How Impel Legal Can Help
Understanding whether Section 75 applies can sometimes be straightforward, but in other cases the legal position may be less clear.
At Impel Legal, we can assist by:
- explaining how Section 75 works;
- helping you understand whether it may apply to your circumstances;
- reviewing contracts, receipts and supporting documents;
- assisting with correspondence to retailers and credit card providers;
- helping you organise evidence to support your claim;
- explaining alternative options, such as chargeback or court proceedings, where appropriate.
Our role is to help you understand your legal position and present your claim clearly and effectively.
Related Guides
You may also find these guides helpful:
- Consumer Rights in England & Wales
- Faulty Goods: Refunds, Repairs and Replacements
- Chargeback Explained (Coming Soon)
- Letter Before Claim
- Alternative Dispute Resolution (ADR)
- The Small Claims Court Explained
- Preparing Evidence for Court
- Witness Statements
Conclusion
Section 75 is one of the strongest legal protections available to consumers who make qualifying purchases using a credit card.
By making credit card providers jointly responsible in certain circumstances, the Consumer Credit Act 1974 offers consumers an additional route to seek redress where goods are faulty, services are not provided or a supplier has breached a contract or made a misrepresentation.
Although not every purchase qualifies, understanding the requirements of Section 75 can help you decide whether it may be appropriate to pursue a claim through your card provider instead of, or alongside, the retailer.
Keeping good records, understanding your legal rights and presenting clear evidence can significantly improve the quality of any claim.
Disclaimer
This guide provides general information about Section 75 claims under the Consumer Credit Act 1974 as it applies in England and Wales. It is intended for educational purposes only and should not be relied upon as legal advice. Whether Section 75 applies will depend on the facts of each case and the relevant legal requirements. If you require assistance with a specific consumer dispute, you should seek appropriate legal support.