Section 75 Explained
Summary and Key Takeaways
Section 75 of the Consumer Credit Act is a crucial piece of legislation for UK consumers, offering protection when something goes wrong with a credit card purchase. This blog post explores what Section 75 covers, how you can claim under this provision, and what to do if your claim is rejected. Whether you've encountered issues with a faulty product, non-delivery of goods, or a breach of contract, understanding your rights under Section 75 can help you secure the compensation you're entitled to.
Key Takeaways:
- Section 75 provides protection for credit card purchases between £100 and £30,000, making the credit card issuer jointly liable if something goes wrong.
- Claims can be made for issues like faulty goods, non-delivery, or breach of contract.
- If a claim is rejected, further steps include escalating the issue to the Financial Ombudsman Service.
What Is Section 75 of the Consumer Credit Act?
An Overview of Consumer Protection
Section 75 of the Consumer Credit Act 1974 is a powerful tool for consumers in the UK. It stipulates that credit card companies are equally responsible to the retailer for ensuring you get what you pay for when using your credit card. This protection applies to any purchase costing between £100 and £30,000, even if only a deposit was paid by credit card. Money Advice Service on Section 75
How Section 75 Protects You
If you've purchased something that turns out to be faulty, isn't delivered, or is misrepresented, Section 75 allows you to claim a refund or compensation from the credit card company. This legal right exists regardless of whether the retailer cooperates or has gone out of business.
When Can You Make a Claim Under Section 75?
Eligible Situations
Several scenarios may warrant a Section 75 claim:
- Faulty Goods: If the item you purchased is defective and the retailer refuses to repair, replace, or refund, you can claim under Section 75.
- Non-Delivery: If you've paid for an item that hasn't been delivered, and the seller isn't addressing the issue, Section 75 offers a route to recover your money.
- Breach of Contract: This can include situations where paid services are not provided as agreed, such as holiday bookings or event tickets.
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Understanding Your Rights Under the Consumer Credit Act: Section 75 Explained
Section 75 of the Consumer Credit Act is a crucial piece of legislation for UK consumers, offering protection when something goes wrong with a credit card purchase.
Claiming for Additional Costs
Beyond the cost of the item or service, Section 75 also allows you to claim for additional expenses incurred as a result of the problem. For example, if a faulty appliance damages your home, you may be able to claim for repair costs.
How to Make a Claim Under Section 75
Steps to Take
- Contact the Retailer: Your first step should be to try resolving the issue directly with the retailer. Document all communications and responses.
- Gather Documentation: Collect evidence such as receipts, contracts, and any correspondence with the retailer.
- Contact Your Credit Card Company: Notify your credit card provider about the issue and state that you wish to claim under Section 75. Provide all necessary documentation to support your claim.
What to Do If Your Claim Is Rejected
If your claim is rejected or the response is unsatisfactory, you have the right to escalate the matter. Here's what you can do:
- Request a Reconsideration: Ask the credit card company to reconsider its decision, providing any additional evidence or clarification that might support your claim.
- Complain to the Financial Ombudsman Service: If the issue remains unresolved, you can escalate your complaint to the Financial Ombudsman Service (FOS), which will independently review your case【Financial Ombudsman Service】.
Additional Considerations
The Importance of Documentation
Keep thorough records of all transactions, communications, and evidence related to your purchase and any issues encountered. This documentation is crucial when making a claim under Section 75, as it provides proof of the problem and the steps you've taken to resolve it.
Understanding Your Card Provider's Policies
While Section 75 provides statutory protection, it's also useful to understand any additional consumer protection policies offered by your credit card provider. Some companies may offer extra insurance or guarantees on purchases, providing further avenues for recourse.
Time Limits for Making a Claim Under Section 75
When seeking redress under Section 75 of the Consumer Credit Act, it's crucial to be aware of the time limits associated with making a claim. Understanding these time constraints is essential as they can affect your ability to successfully claim compensation.
Statutory Limitations
The Limitation Act 1980 provides the legal timeframe within which you must bring a claim. For claims under Section 75, you generally have six years from the date of the breach of contract or misrepresentation (five years in Scotland) to make a claim. This means if you discover a fault or do not receive goods or services as described, you should initiate your claim within this period.
Importance of Prompt Action
Acting promptly when you discover an issue is crucial. Delaying can not only make it harder to gather evidence but also risk surpassing the time limit for eligible claims. If you suspect that your rights under Section 75 have been violated, such as receiving faulty goods or not receiving the service you paid for, it is advisable to start the claim process as soon as possible.
Special Considerations
In some cases, the problem might not become apparent immediately, such as in the case of goods that fail prematurely but well after purchase. In such instances, the time limit may start from the moment you became aware (or ought to have become aware) of the issue. This is often termed the 'date of knowledge'.
Documenting Your Claim
From the moment you initiate a purchase, keep all relevant documentation securely—receipts, contracts, warranties, emails, and any correspondence related to the transaction. These documents are vital for supporting your claim, especially if there are delays in identifying or resolving the issue. Thorough records can provide clarity on the timeline and substantiate your claim within the statutory limits.
Conclusion
Section 75 of the Consumer Credit Act offers robust protection for UK consumers, ensuring that credit card purchases are safeguarded against various issues, from faulty goods to non-delivery. Understanding how to make a claim under this section is essential for securing your rights and potentially recovering any lost funds or additional expenses.
If you encounter a problem with a purchase, remember that you have the right to seek redress from the retailer and your credit card provider. Documenting your case thoroughly and following the proper procedures can significantly increase the likelihood of a successful claim.
For more detailed guidance on your rights and the claims process, consult resources like the UK Government's Guidance on Section 75. Don't hesitate to seek assistance from the Financial Ombudsman Service if needed.
How We Can Help
If you believe you have a valid claim under Section 75 or need assistance navigating the process, don't hesitate to reach out to our team at Fullbrook Associates. We're here to help you understand your rights and guide you through each step, ensuring you receive the compensation you're entitled to. Contact us today for a free, no-obligation consultation.
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Fullbrook Associates - Specialised Services Delivered by Experts
Fullbrook Associates are experts in the field of compensation claims. We assess the merits of your case to establish whether we believe you have a reasonable prospect of success. If you wish to pursue a claim, our legal team, who specialise in compensation, can progress your case.
Please be aware. You are under no obligation to complete a claim using our services. You can do the claim directly yourself to your creditor for no charge. If you have approached your creditor first, you can also approach the Financial Ombudsman Service for free if you wish for them to review your case.
You do not require to use a claims management company, you can contact the Financial Ombudsman Service or your creditor yourself, for free.