What section 75 covers
Clients can use section75 when:
•the company has failed to supply the goods or services, or has supplied goods not up to standard;
•the company has misrepresented what it is supplying – eg, a software supplier says a software package will work with a particular computer when it does not.
To qualify for protection under section 75, clients must have spent between £100 and £30,000 on their credit card. This protection does not apply to anything bought using a debit card. Note:
•The £100 minimum amount applies to each item or set of items bought, rather than the total bill. For example, when buying tickets for an event, a ‘family ticket’ counts as one item but individual tickets for family members would not. If the individual tickets were less than £100 each, they would not be covered under section 75.
•Clients should first contact the company/creditor they purchased from, providing them with an opportunity to resolve the issue. The client should explain that they want them to help resolve an issue with something they have paid for using their credit card and would like them to consider the chargeback and section 75 process. They should include any supporting information they have - eg, receipts, invoices or other proof of payment, any correspondence about the goods/ services purchased, contracts and terms and conditions, if available. If the company fails to respond or refuses a refund, a claim can be initiated against their credit card company.
Section 75 of the CCA 1974 outlines this protection in detail and should be referred to by a debt adviser who may be helping a client with an application.
If an application under section 75 is unsuccessful, the client can raise a complaint with the Financial Ombudsman Service (see here). Their decision is usually final, although the client can ultimately raise an action in court, but should be made aware that this is costly and often not successful.