Section 75 of the UK Consumer Credit Act 1974 relates to the purchase, by credit card, of goods or services costing over £100 but no more that £30,000. The Act says that should the goods prove to be defective or the service not delivered, there will be an equal claim for compensation against both the seller of the goods or service and the finance company.
Section 75 Protection for Credit Agreements
Although most of the claims are to credit card companies, the law also applies to other types of credit agreements. For example, this might include a car loan as long as it’s covered under the Consumer Credit Act. This must be clearly stated on the documentation. Section 75 protection does not apply if goods are purchased using cash, debit card or a credit card cheque.
A judgment by the House of Lords in 1997 meant that despite opposition by some credit card companies, consumers now have Section 75 protection if they make a purchase abroad. This is still the case even if the goods have been purchased online, by mail order or by telephone.
