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