Finances can be confusing, especially when it comes to where you stand over getting your money back in case something goes wrong. Martin Lewis, the Money Saving Expert, has regularly advised customers to pay for big purchases on a credit card to ensure they’re covered in case something goes wrong.
Recently, a fan of the finance guru revealed how he had managed to claim back £4,780 after being left out of pocket following the collapse of a funeral provider. The fan, known only as Chris, revealed that he only knew he could make a claim after reading the advice in Martin’s newsletter.
Many credit card holders may be unaware of the protection offered to them by Section 75, or what kind of purchases it covers. Here, we’ve provided a rundown of what it is, how it works and how you can use it to get your money back.
Read more: Martin Lewis fan's credit card trick that allowed him to claim £4,780 cashback
What is Section 75?
Section 75 is a UK consumer protection law that means your credit provider must take the same responsibility as the retailer if things go wrong with a purchase. This particular segment comes from the Consumer Credit Act of 1974 and it says:
"75. — (1) If the debtor under a debtor-creditor-supplier agreement falling within section 12(b) or (c) has, in relation to a transaction financed by the agreement, any claim against the supplier in respect of a misrepresentation or breach of contract, he shall have a like claim against the creditor, who, with the supplier, shall accordingly be jointly and severally liable to the debtor.”
What purchases does Section 75 cover?
Section 75 covers any purchase for a single item bought using a credit card where the value is between £100.01 and £30,000. This includes items where you paid the deposit on your credit card.
As well as your credit card, if you purchased something with a store card, store instalment credit, PayPal credit, you’ll also be covered. You can turn to the Section 75 law if you used your credit card to buy something that’s never arrived or did arrive, but is not as described, whether that’s online, over the phone or in a catalogue.
Customers are protected in the case of a company going bust, similar to Martin’s fan Chris, as well as costs associated with a cancelled event, such as the tickets for a rescheduled event, and any associated costs like a hotel room for after a concert or train tickets to the venue.
How can I make a Section 75 claim?
Before you contact anyone, you should make sure that you have all the necessary evidence to provide for your case. This will include details about the transaction including receipts showing the date and details of the item you purchased, and any emails or other correspondence that backs up your claim.
First, it is recommended that you contact the retailer to see if there’s anything that they can do, for example, offer a repair or a replacement. If you have already done this or it isn’t a possibility, you should go directly to your credit card provider.
Your credit card provider will ask for details about the transaction. They will also need to know why you’re making the claim and what action you have taken to reclaim any money.
There will often be a section for extra details, in this you should detail any attempts you’ve taken to reclaim the money with the retailer first. This could also include any details you’ve received about a cancellation, delay or change.
Claims can be made in writing by sending a letter to your credit card provider or through online/mobile banking. There is no legal time limit on a provider to resolve your dispute although it’s reasonable to expect things to take around 28 days.
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