As a consumer, when purchasing goods/services using a credit card where the value of the purchase is over £100.00 but not more than £30,000.00, you may benefit from additional protection provided to you under s.75 of the Consumer Credit Act 1974. It is important to note that you only need to have paid some of the cost by credit card for the entirety of the cost of the goods or services to be covered by this protection; it is not limited to the amount that you paid on your credit card.
The additional protection offered is that your credit card provider may be jointly and severally liable for any breach of contract committed by a retailer or trader; in other words your provider could be equally responsible for the quality of the goods/services supplied.
Whilst you will still need to prove the alleged breach of contract and your credit card provider may contact the seller or trader, the credit card provider will be able to assist in cases where the seller or trader is simply refusing to reimburse you following their breach of contract.
When considering a s.75 claim you should consider whether you have information which may be useful such as:
- Receipts, invoices and proof of payment;
- The terms and conditions provided at the point of sale;
- Correspondence with the trader relating to the goods or services you purchased;
- Photos or videos of the goods or services you paid for, depicting the alleged breaches of contract; and
- Any independent reports, or expert opinions you have obtained.
In the event that your claim is rejected by your credit card provider, it may be that you have further recourse via the provider’s internal complaints process and, in the event that your complaint is not upheld, via the Financial Ombudsman Service.
