Under Section 75 of the Consumer Credit Act, if you paid for something between £100 and £30,000 with a credit card – your purchases are protected if the supplier breaches its contract or misrepresents the goods. This means you’re covered if:
Even if you just made part of the purchase with your credit card (such as a deposit), you’ll still be able to make a claim – as long as the total purchase price for a single item is between £100 and £30,000.
If the total purchase price is under £100 or over £30,000, it will not be covered by Section 75. This sounds simple, but can be complicated in some instances.
When you purchase multiple items, to be eligible, the cash price attached to a single item will need to be over £100 and under £30,000. For example, if you buy two tickets for £60 each, these would not be covered.
Delivery is also not included. If you bought a ticket for £95, and paid a £10 delivery fee, this would not be covered as the cash price for the ticket itself was below the £100 threshold.
Other purchases that are not covered include:
Section 75 may also not cover you if the supplier gives you the option to re-book or provides a credit voucher.
If flights, package holidays or events are cancelled, it’s important to refer to your contract. Read and understand the supplier’s terms relating to cancellations, refunds or re-booking in the first instance. This will help you set out your dispute or claim and could enable you to get a resolution quicker.
If your booking isn’t cancelled, check the Foreign and Commonwealth Office’s (FCO) current travel restrictions for guidance and advice. You may need to wait until any restrictions or bans are extended before being able to make a Section 75 claim.
If the supplier gives you the option to re-book or take a credit voucher, you won’t be able to raise a dispute or claim under Section 75, unless this is in breach of the supplier’s terms and conditions.
If the supplier stops trading or becomes insolvent and cancels, but doesn’t offer a refund or re-booking, you may be able to make a Section 75 claim.
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To raise a dispute or claim under Section 75, you’ll need to be able to tell us:
We’ll review your case, but will ask for evidence that you have tried to resolve the dispute with the supplier and attempted to recover your loss.
Chargebacks are a way for us to try and get the money back directly from the supplier’s bank, and apply for both debit and credit card transactions.
Chargebacks may be done if:
You should contact us to make a claim as soon as you find out there’s a problem, or have concerns about a card payment.
We usually need to start the chargeback process within 120 days of the date of the transaction, or when you were due to receive the goods or services. There’s no minimum payment amount for a chargeback.
If a valid chargeback right is available, the chargeback scheme allows your bank to raise a dispute against the transaction on your behalf.
It can be a quick and efficient way of getting a refund from the supplier’s bank, which doesn’t affect your Section 75 rights.
Provided you meet the criteria for a Section 75 claim, you may still rely on your Section 75 rights if the chargeback is not successful.
