When you pay for goods on your credit card you have the protection of Section 75 of the Consumer Credit Act if something goes wrong, and certain criteria are met. For this reason, I highlight this great protection on a regular basis, and this results in lots of questions about your rights under Section 75. Here are the top 5 questions I’m asked:
Does it work if I only pay part of the purchase price on my credit card?
Yes, so long as the purchase price is at least £100.01.
Does it work if I pay via a payment platform, such as PayPal?
No, for Section 75 to be engaged you must have paid the trader ‘direct’ and there must be no break in this chain. When you pay via the likes of PayPal your card provider pays the payment platform and it then pays the trader, hence breaking the ‘direct’ chain.
Do I have to complain to the trader first?
Yes, but if the trader ignores you or fails to provide the remedy you are entitled to you can then proceed to make a Section 75 claim.
Is there a time limit?
No, there is only a time limit for Chargeback claims. However, as with all consumer complaints, the quicker you act the more likely you are to achieve the result you desire.
Why has the card company put my Section 75 claim through as a Chargeback claim?
When you pay with your credit card you are able to make a Chargeback or Section 75 claim. If you are still within 120 days of purchase the card provider will normally go down the Chargeback route; this is entirely normal.