Section 75 Refunds: How Your Credit Card Provider Is Equally Liable — and the Letter That Gets Your Money Back

When a purchase goes wrong — the goods never arrive, they are faulty, the trader misled you, or the company goes bust before delivering — most people assume their only argument is with the retailer. But if you paid by credit card, UK law gives you a powerful second line of attack: your card provider is equally liable for what went wrong. It is called Section 75, and it is one of the strongest consumer protections most people never use. Here is how it works, and how to put your card provider on notice in writing.

What Is Section 75?

Section 75 of the Consumer Credit Act 1974 makes your credit card provider jointly and severally liable with the retailer for any breach of contract or misrepresentation by that retailer. In plain terms: if the seller has broken the deal or misled you, you can claim against your card provider for exactly the same thing you could claim against the seller — and you can pursue either of them, or both. That matters most when the retailer has gone out of business, is ignoring you, or is based overseas and hard to chase: the card provider is a UK-regulated firm that cannot simply vanish.

The £100 to £30,000 Rule

Section 75 applies where the cash price of the item or service is more than £100 and no more than £30,000. A few points that trip people up:

• It is the price of the single item or service that must be over £100 — not your total basket. A £150 item bought alongside a £5 accessory still qualifies on the £150 item.
• You do not have to have put the whole cost on the card. If you paid even part of the price on your credit card — a deposit, for example — the whole qualifying purchase can be covered, provided the item's cash price is within the £100–£30,000 band.
• While the item price must be £100–£30,000, the losses you can claim can in some cases exceed the purchase price (for example, consequential losses flowing from the breach).

Credit Cards Only — Not Debit Cards

Section 75 is a feature of credit agreements, so it applies to credit cards and store cards. It does not apply to debit cards, prepaid cards, or charge cards (such as classic American Express charge cards). If you paid by debit card — or the purchase was under £100 — you are not left with nothing: you can use chargeback instead (see below).

One timely development: from 15 July 2026, the Financial Conduct Authority is bringing many previously unregulated "buy now, pay later" products into full regulation. Reporting on the change indicates qualifying BNPL purchases will gain Section 75-style protection and access to the Financial Ombudsman for the first time — so if you used a regulated BNPL agreement for a purchase in the £100–£30,000 band, it may be worth checking whether the same rights now apply.

When Can You Use Section 75?

Section 75 is not a general "I changed my mind" refund. You need a genuine breach of contract or misrepresentation. Common examples include:

• Goods never delivered — you paid but nothing arrived.
• The retailer went bust before delivering goods or services (a classic Section 75 scenario — a collapsed airline, furniture retailer, or tradesperson who took a deposit).
• Faulty or not-as-described goods the seller refuses to put right.
• You were misled about what you were buying — a misrepresentation that induced the purchase.

Section 75 vs Chargeback: Know the Difference

These two routes are often confused, but they are not the same thing:

• Section 75 is a legal right under an Act of Parliament. It applies to credit cards, for purchases over £100 up to £30,000, and it makes the card provider genuinely liable.
• Chargeback is not a legal right — it is a process run under the card schemes' own rules (Visa, Mastercard, American Express). It can be used for debit as well as credit cards and for smaller amounts, but it is subject to scheme time limits — typically you must raise it within around 120 days — and the scheme rules, not the law, decide the outcome.

If your purchase qualifies for both, Section 75 is usually the stronger route because it is backed by law. Chargeback is the fallback for debit-card payments and sub-£100 purchases.

How to Make a Section 75 Claim

1. Try the retailer first if you realistically can. It is often quicker, and your card provider will usually expect you to have given the seller a chance to put things right — unless the retailer has gone bust or is plainly not going to respond.
2. Claim against your card provider in writing. Set out the purchase, what went wrong, why it is a breach of contract or misrepresentation, and the refund you are claiming. Attach your evidence — order confirmation, card statement showing the payment, and any correspondence.
3. Escalate to the Financial Ombudsman if they refuse. If the card provider rejects your claim — or eight weeks pass without a resolution — you can take it to the Financial Ombudsman Service, a free, independent service. You generally have six months from the date of the provider's final response to refer it.

What Your Letter Should Say

A strong Section 75 claim letter should:

• Identify the purchase — what you bought, from whom, the date, the amount, and confirmation that at least part of it was paid on your credit card.
• Confirm the purchase price is within the £100–£30,000 band.
• State what went wrong — the breach of contract or the misrepresentation, in specific terms.
• Cite Section 75 of the Consumer Credit Act 1974 and the provider's joint-and-several liability.
• State the amount you are claiming and give a clear deadline for a response.
• Say what happens next — referral to the Financial Ombudsman Service if the claim is not resolved.

Time Limits — Do Not Wait Too Long

Section 75 itself sets no deadline, but a claim is generally treated as subject to the ordinary limitation period: six years in England, Wales and Northern Ireland under the Limitation Act 1980, and five years in Scotland. Separately, if you need to escalate to the Financial Ombudsman, you normally have six months from the card provider's final response. Either way, the sooner you claim while records and evidence are fresh, the stronger your position.