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 be able to tell us:
- the date of transaction(s) which relates to your dispute
- the amount of transaction(s) which relates to your dispute (we may ask you for evidence of payments)
- the date you were meant to travel, or the date on which goods and services should have been delivered
- when and how you contacted the supplier (we may ask you for evidence or details/dates)
- what the supplier’s terms and conditions say you are entitled to (we may ask you to provide a copy)
- details of when you should have had the refund (if due) according to their terms and conditions (we may ask you to provide a copy)
We’ll review your case on its merits, but will require you to evidence that you have tried to resolve the dispute with the supplier and attempted to recover your loss.
How is a Section 75 claim different from a chargeback?
Chargebacks apply to both debit card and credit card transactions and are a way for us to try and recover the funds directly from the supplier’s bank in a number of circumstances. These may include:
- if you don’t get the goods or services that you paid for, including where the company stops trading
- if goods or services you purchased are faulty, counterfeit or defective
- if you’re charged the wrong amount, or charged twice by mistake
- if you’re charged for a repeat payment after cancelling a subscription
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.
Some of the advantages of raising a dispute through a chargeback are:
- if a valid chargeback right is available, the chargeback scheme allows your bank to raise a dispute against the transaction on your behalf and recover funds from the supplier’s bank directly
- a chargeback can be a quick and efficient way of getting a refund from the supplier’s bank
- a chargebacks claim does not 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