Section 75 of the Consumer Credit Act 1974 protects you when you spend between £100 and £30,000 with a credit card on a single transaction. In effect, the card company takes on the seller’s responsibility if things go wrong. You don’t have to use the card to pay the whole amount; even spending a penny creates protection. This security is awarded to the primary cardholder, additional users are not automatically covered.
Using a third-party card processing firm.
You must pay the seller directly to qualify for section 75 protection. Therefore, always make sure you pay the seller directly, not the intermediary. If you cannot do this, then consider alternative suppliers. This is because protection relies on a three-part chain detailed below.
Creditor (Lender) – Debtor (You) – Supplier
Please consider the following scenarios:-
♦ The purchase of a hotel break via a travel agent. To be covered, you would have to pay the hotel directly. Using an intermediary such as a travel agent would not protect you as the sale is with the travel agent, not the hotel.
♦ Purchases on Amazon marketplace would not be covered as Amazon are acting as an intermediary between you and the supplier, however buying their own products from them directly would be covered.
♦ Theatre tickets purchased from the theatre foyer would be covered, those bought via a ticket agent would not.
What if I buy something under £100?
Here you may have the protection of what is known as “Chargeback”. This protects you for 120 days from the date you discovered the issue. Things that it covers for you are defective goods or goods that still haven’t arrived. It also covers you if someone used your card without permission or if the seller has gone bust and disappeared. This is not a legal requirement such as Section 75 but instead a voluntary service offered by banks.
When the Act does not protect the cardholder
If your card was lost or stolen, you are liable for the first £50, however, if you report your card missing quickly card companies usually waive this charge. They may not cover you if you acted negligently or without a reasonable amount of care. For instance, they may refuse to assist if:-
♦ It’s been a long period (over a year) since the fraudulent activity happened
♦ Your card provider can prove you authorised the transaction.
♦ You acted fraudulently – stating a payment was not authorised when it was You didn’t protect your card details, PIN or password to any reasonable degree, for instance writing down the details in the same wallet/purse as the card itself.
Using Lestons as a mediator
Lestons have specialist staff who can liaise with credit card or debit card companies should you have difficulty in getting a refund, we would need you to open a case to arrange this. To create a case on this topic just click the link at the top of this page, our staff are ready and eager to assist you in any way possible.
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