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
