Consumer Rights | Section 75 Refunds: Free Protection For Credit Card Spending
By law, your credit card provider must protect your purchases if they amount to more than £100 pounds in the event that they are faulty, or you would like a refund on your purchase. However, the process for claiming on Section 75 and understanding its complexities can be confusing. Therefore, this FAQ page will help you to determine whether your purchase is protected and what you can do to ensure that you are able to get a refund on any purchase that you make on the credit card in question.
What is Section 75?
Section 75 ensures that you have the right to demand a refund from your credit card provider as well as the retailer whom you have made a purchase from, giving each party an equal responsibility to make sure that you have received your money back. This has been instated in the law for over 30 years to prevent consumers from paying back debt in the form of credit card payments on items that they were not completely happy with at the time of purchase. This means that you can put a claim to your credit card provider for your money back if the retailer in question has breached any part of the contract that was made when you purchased the product.
What scenarios can you claim under?
To make a claim under Section 75, your case needs to come within the branches of one of a couple of scenarios which you are protected under. You will be protected by Section 75 if there has been a breach of contract between you and the retailer whom you have bought off. For instance, if the product was not of the quality that you expected, or if you never received the product that you have paid for. You can also make a claim if the product that you bought was misrepresented to you at the time of purchase.
For instance, if the information on the product description differs from the product itself on arrival or the product does not fulfil the activities that it was stated to online or in store. This means that you do not have to be concerned if the product that you have bought arrives faulty or damaged and the retailer refuses to refund you for the item. In all scenarios, the products must have cost between £100 and £30,000.
How do you get a Section 75 refund?
You do not have to wait for the retailer to respond before you make a claim to your credit card company. In fact, if the request is urgent, you can make a claim to both the retailer and your credit card company simultaneously.
To make a Section 75 claim, you need to contact your credit card company (usually a bank, for instance) who will normally be the company who you are making the repayment to. You can make a claim even if you have since closed your credit account or if the retailer has gone bust, where you must contact your credit card company first before taking any further steps.
There is a range of information which you must give to your credit card company before you can claim, and this includes details of any contact with the retailer, the date and product which you bought, the cost, and what was wrong with the product that made you look for a refund. You can often complete these Section 75 claims both online and by post, with both methods being equally valid in order to get your money back.
What does Section 75 protect?
Section 75 protects any purchase made on your credit card that cost between £100 and £30,000. This much be the cost of the product that you are refunding on its own, rather than the total cost of your purchase, and this does not include postage and package or any other extra costs that you may have incurred.
However, the law also covers any costs that you incurred due to the issue, such as the postage or travel costs that you may have been liable to in seeking a refund. If you have left a deposit, you will be able to claim for the whole cost of the item in question if it is over £100, regardless of how much of this amount you paid.
Additionally, Section 75 also covers finance repayments and other instalment based purchases that you may make, such as retail credit repayment. If you want cover for an item over the cost of £30,000, there are some instances when you can claim after you have made contact with the seller, but you must prove that this money is directly linked to the product, such as a written contract.
What happens if you pay by an alternative payment method?
Although this article so far has only covered your rights if you pay by credit card, there are solutions to issues you may have when you pay by debit card or Paypal. If you pay by debit card, although you will not be protected by Section 75, it could be possible that you will be able to claim your money through Chargeback. Chargeback can be used for both credit and debit cards and allows you to request that a transaction is reversed, with the bank taking the money from the retailer and putting the original amount back into your account. Chargeback is especially useful if there has been miscommunication or your items are damaged by the time that they arrive. In terms of Paypal, although having a third party involved may reduce your rights, you can still get your money back. If the retailer has a Commercial Entity Agreement with Paypal, then you can still use Section 75 to get your money back and recover your losses.
However, Paypal and other third parties often run their own protection schemes which can help you to receive your money from refunds if products are not as expected, and can protect you against fraud and theft.
Does it cover secondary credit cards?
If you have a joint account which multiple persons withdraw from, such as a partner, and secondary cards which you can use, this process becomes slightly more complicated. If you are an additional cardholder, you may not have the same monetary protection for your purchases as the main cardholder, and so you should make sure that they are the ones that use your card to buy expensive purchases. As a secondary cardholder, although you will usually be protected, only through the main cardholder making the purchase will you be sure of protection.
What happens if you withdraw cash?
Although withdrawing cash may seem like a simple option to make purchases quickly and easily, if you withdraw cash from your bank account and then use this to make a purchase, you will not be covered at all by Section 75. This is because it cannot be evidenced that you used the money that you withdrew to pay for the purchase, and there will be no legal binding between the retailer, yourself, and the credit card company. If you are making an extensive purchase that needs to be protected, it is vital that you pay using your credit rather than in cash, which is less easy to track once you had made a purchase.
How do you find the right credit card?
When looking for a new credit card provider, there are a number of basic aspects which you will be looking at to make your decision. These include the interest rates that you will receive immediately and in the future, the potential cash back that you can get, any additional fees, and the repayment rates to decide whether these are the right options for you. However, when looking for financial protection, all credit card providers have to adhere to the law in terms of Section 75, and you will be able to receive your cash back in a refund from all major credit card suppliers. However, some credit card companies will offer more protection than others under various schemes. To find out what each company offers, you should speak to an advisor or use a credit card comparison service to find the company that best suits your needs and offers you the kind of protection that you are looking for before you are able to make a decision.
When paying on your credit card, you will be protected more than using other payment methods such as debit card and cash and so paying by credit card is always advantageous. However, before making a claim or purchasing a large item, you should consider the impact of this and whether you are fully protected under Section 75 before you make the final transaction. From how much money you are spending to the terms of your payment, there are many factors that could affect your financial protection and which you must take into consideration to be successful in making a Section 75 claim if you need it.