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What is Section 75 of the Consumer Credit Act?

As various events, holidays and other plans are cancelled due to the coronavirus outbreak, you may be looking at whether you can get a refund.

What does Section 75 cover?

Under Section 75 of the Consumer Credit Act, if you made a purchase of between £100 and £30,000 with a credit card, your purchases are protected if the supplier breaches their contract or misrepresents the goods. This means you’re covered if:

  • the product is faulty 
  • the product doesn’t match the description
  • the product or service is not delivered
  • the supplier goes out of business

Even if you just made part of the purchase with your credit card (such as a deposit), you will still be eligible to make a claim as long as the total purchase price for a single item is between £100 and £30,000.

What doesn't Section 75 cover?

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 the 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. Also, delivery charges and fees that may make up part of the cost are not considered to be part of the cash price. So, if you bought a ticket for £95 and then paid a £10 delivery fee, this would not be covered as the cash price for the ticket was £95 and below the £100 threshold.

Other purchases that are not covered:

  • hire purchases
  • payments through third parties (such as a third party payment providers)
  • cash advances

Section 75 may also not cover you if the supplier offers you the ability to re-book or provides a credit voucher.

Can you claim for travel bookings?

If flights, package holidays, or events are cancelled, it’s important to refer to your contract and understand the supplier’s terms relating to cancellations, refunds or re-booking in the first instance. If you do this before raising a dispute or Section 75 claim, this will help you set out your dispute or claim and could enable you to get a resolution quicker. 

If your bookings are not cancelled, check the Foreign and Commonwealth Office’s (FCO) current travel restrictions for guidance and advice. There are different travel restrictions and in some cases bans on travel depending on your destination and dates of travel. So, if your date of travel or event extends beyond the dates mentioned in the FCO’s advice, you may need to wait until the restrictions or bans are extended before being able to make a Section 75 claim.  

If the supplier offers you the ability to re-book or a credit voucher, you will not 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/becomes insolvent and cancels, but doesn’t offer a refund or re-booking, then you may be able to make a Section 75 claim.

See how to dispute a transaction

In order to raise a dispute or claim under Section 75, you’ll need to provide us with: 

  • full details relating to the booking (including supplier’s terms and conditions)
  • all correspondence with the suppliers or insurers

We’ll review your case on its merits, but will require you to evidence that you have tried to recover your loss. 

See how to dispute a transaction 

Our call centres are extremely busy at the moment, so please bear with us. Before you call, make sure you have considered the guidance above and you have all the relevant information to enable us to assist you with your dispute or claim.

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