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Section 75 Protection

Your secret financial super-hero: Section 75 laws mean your credit card must protect purchases over £100 for free, so if there's a problem you could get your money back.

It's a vital law made in the UK in the 1970s that means your credit provider must take the same responsibility a retailer does if things go wrong with a purchase. In a nutshell...

"If you pay for something costing between £100 and £30,000 using a credit card then the card provider's are equally liable if something goes wrong."

This isn't the credit provider being nice. It's a legal protection put in place so that you are never in the position of paying off debt for something you didn't receive or wasn't as it should have been. Regardless of what you buy, if you pay on a credit card, store card or with store instalment credit, under British law; as with the vendor, your credit provider's are equally responsible.

Some typical examples…

  • You purchase a holiday club membership or timeshare but you do not receive the product described.
    You buy a holiday club membership or timeshare the service providers go bust.
    You buy a holiday club membership or timeshare on the promise of receiving cashback, but do not receive a penny.

In all of these, your lender is jointly liable for a refund.

So if you are buying something worth more than £100, it would be very wise to pay for some or all of it using a credit card to ensure that you are protected. Also ensure that you keep your receipts as well as your card statement to make it easier.

Visit the following link for a full in-depth review of the UK Consumer Credit Act 1974

www.legislation.gov.uk/ukpga/1974/39/contents