What is Section 75?

Section 75 of The Consumer Credit Act is there to protect you, the consumer against the purchase faulty and / or mis-sold goods and services. The credit provider is as equally liable as the retailer, even if sometimes they don’t think so! This is your legal protection, and a right.

The law was passed in 1974 and basically covers any purchase from £100 to £30,000 paid for under credit. This means not only credit cards, but store cards, some car finance agreements etc used to pay for things like holidays, kitchen appliances, and computers.

Here is the first paragraph from the act:

75. — (1) If the debtor under a debtor-creditor-supplier agreement falling within section 12(b) or (c) has, in relation to a transaction financed by the agreement, any claim against the supplier in respect of a misrepresentation or breach of contract, he shall have a like claim against the creditor, who, with the supplier, shall accordingly be jointly and severally liable to the debtor.

Read in full here: http://www.legislation.gov.uk/ukpga/1974/39/section/75

What Are My Rights Under Section 75?

As detailed above, with any goods paid for by a debtor-creditor-supplier agreement, the credit provider is jointly and severally liable for any breach of contract or misrepresentation by the supplier of goods or services.

This means for mis-sold or faulty goods and services, if you have paid via a credit card, you also have a claim against the credit card company.

You don't have to wait until you have contacted the retailer and failed either before approaching the credit card provider - both can be made a claim against simultaneously. If the retailer has gone bust, or is being difficult, this is particularly useful.

If you have bought goods abroad, or online from an overseas retailer and had them delivered to the UK, Section 75 of the Consumer Credit Act also applies.

What Does Section 75 Cover?

The total value of the goods or services must be between £100 and £30,000. This means if you have only paid a deposit on your card, you can still claim.

For example, if you paid for a holiday club or timeshare deposit with a credit card, you still have a claim for the whole amount.

What Is Not Covered Under Section 75?

The value of the goods or services must be above £100. You are not covered if you bought 2 items for example, that cost over £100 in total, but each cost less than £100. Hire purchase agreements are also not covered, but some car finance agreements may be. Other instances which are not covered by Section 75 are debit cards transactions, goods paid for via a cash withdrawl using a credit card and third party agreements such as travel agent purchases, rather than going direct to a holiday company. Also beware of PayPal and group buying purchases too, as these are not covered.

How Long Do I Have to Claim Under 75 – Is There a Time Limit?

There is no time limit to putting in a section 75 claim. If you are unhappy with the credit card company’s response however you have 6 year limit to pursue the matter in court.

This post is written by Aequiam Limited, a company that helps consumers with Section 75 Claims for mis sold goods and services on a no-win, no fee basis. You can find our more on our website www.aequiam.co.uk, email us on info@aequiam.co.uk or call on 01525 384422 / 384477

Reasons for Failed Section 75 Credit Card Claims

Many people are aware that you can claim under section 75 of the Consumer Credit Act, in cases where there has been misrepresentation or a breach of contract (mis-sold goods and services).  They must have been purchase under credit and the price of the item or service must be over £100 & under £30,000.

However there are often misunderstandings - on the part of credit providers as well as on the part of consumers - about what exactly section 75 covers. This can result in failed claims and further frustration on the part of the consumer.

Section 75 only helps the consumer where there has been either a breach of contract or a misrepresentation by the supplier of the goods and services. To give some examples:

 A breach of contract is where goods or services that have been paid for are not supplied at all, or are not up to scratch. e.g. You pay for a washing machine and it is not delivered, or is faulty.

A misrepresentation is an incorrect statement of fact that causes the consumer to go ahead with the contract. e.g. if you are persuaded to buy an expensive leather sofa by being told it is scotch guarded and guaranteed for 10 year and in fact it turns out it isn't.

Common misunderstandings

Many of the failed section 75 claims Aequiam come across are usually caused by misunderstandings by consumers and businesses about how section 75 works. For example:

1. Believing that Section 75 gives an automatic entitlement to a refund if credit was used to fund the purchase. Not always as credit card companies look at each complaint on a case by case basis.
2. Assuming that all purchases made with plastic cards are covered by section 75. Not the case as section 75 only covers transactions made using consumer credit (credit cards and store cards, not debit cards).
3. Making a claim under section 75 if you do not get value for money. You should only make a claim under Section 75 where there was a misrepresentation or a breach of contract by the supplier. If you found goods cheaper elsewhere for instance, this wouldn't be covered
4. Trying to make a claim for more than one item bought from the same store. The purchase has to have been made on a single product or service. For example, if you bought a computer and software bundle for £400 you'd be covered, but if you bought the computer and antivirus software separately for £350 and £50 respectively, you would not be covered for the software.
5. Claiming against section 75 if you use your credit card abroad. If the transaction was made with a UK credit card you can make a claim, but the sterling equivalent of the price must still be within the £100 to £30,000 limits. 

However we do find that in the cases of a legitimate claim, the credit card company will often reject it in the first instance. Don’t be fobbed off!! In this instance we can help you in creating a more substantial case for mis-sold goods and services under Section 75, through our extensive knowledge of these procedures.

This post is written by Aequiam Limited, a company that helps consumers with Section 75 Claims for mis sold goods and services on a no-win, no fee basis. You can find our more on our website www.aequiam.co.uk, email us on info@aequiam.co.uk or call on 01525 384422 / 384477