Section 75 of the Consumer Credit Act 1974 makes the credit card provider jointly liable with the retailer for purchases between £100 and £30,000. It covers misrepresentation and breach of contract — for example, if a company goes bust before delivering goods or services. A claim can be made directly to the card provider without needing to sue the retailer first. Section 75 does not apply to debit cards or purchases made via third-party payment services (FCA, Consumer Credit Act 1974, 2026).

Section 75 Claim UK 2026: How to Get Your Money Back on a Credit Card Purchase

Section 75 of the Consumer Credit Act 1974 makes credit card issuers jointly liable with retailers for breaches of contract or misrepresentation on purchases between £100 and £30,000.

Last reviewed: 11 May 2026.

The legal basis

Section 75 of the Consumer Credit Act 1974 imposes joint and several liability on the credit card issuer for any "misrepresentation or breach of contract" by the supplier where the consumer used the card to pay (in whole or in part) for goods or services. The relevant test was originally restated in detail in the House of Lords decision Office of Fair Trading v Lloyds TSB Bank plc [2007] UKHL 48, which confirmed that Section 75 applies to overseas transactions too.

Two preconditions:

• The cash price of the goods or service must be more than £100 and not more than £30,000.
• The transaction must form part of a debtor-creditor-supplier arrangement, which credit card transactions always do.

What it covers

• Goods that don't arrive: Online retailer takes payment and never ships.
• Faulty goods: Item is defective, breaks shortly after delivery, or is materially different from description.
• Misrepresented services: A service was sold on terms that turn out to be false (a wedding venue that has gone into administration; a holiday described inaccurately).
• Supplier insolvency: Retailer or service provider goes bust before delivering. This is one of the most-used Section 75 scenarios.
• Holiday and travel: Airline collapses; hotel never honoured booking; tour operator breaches the package travel terms.
• Building work and home improvements: Contractor takes deposit, abandons job, breaches contract on quality.
• Vehicles: Car bought with a deposit on a credit card and the rest in finance - Section 75 still applies, with disputed-but-resolved limits on the full amount recoverable.

What it does not cover

• Single items priced at £100 or less, or over £30,000.
• Debit card purchases. Use the Chargeback scheme via your bank instead (operates under Visa/Mastercard scheme rules, not statute).
• PayPal or other third-party payment processors when the credit card paid PayPal directly rather than the retailer. Court rulings have been inconsistent here; the safest position is that Section 75 typically does not apply when an intermediary breaks the direct debtor-creditor-supplier link.
• Cash withdrawals, balance transfers, or money transfers.
• Additional cardholder transactions on someone else's account if the additional cardholder is the one disputing (claim must come from the primary cardholder).
• Business-to-business purchases on a business credit card in most circumstances (consumer protection rules generally don't apply).

The £100 to £30,000 rule explained

The £100 lower limit applies to the cash price of a single item or service, not the amount charged to the card. Example: you buy a £500 sofa with a £30 deposit on the credit card and the rest on store finance. Section 75 still applies because the cash price of the sofa is over £100. You can claim the full £500 from the credit card issuer, not just the £30 deposit, if the sofa is never delivered or is defective.

The £30,000 upper limit on each single item or service is rarely binding for consumer purchases. For very large items (some kitchens, cars, building work), pay part on a credit card explicitly to engage Section 75 even if you can't or don't want to fund the whole purchase on the card.

Splitting a single purchase across multiple smaller payments to bring each one under £100 does not usually escape Section 75 - courts apply the cash-price test to the underlying good or service, not the transaction value.

Section 75 vs chargeback

If your purchase is over £100 and on a credit card, Section 75 is the stronger route. Chargeback is the right tool for debit card disputes, low-value disputes, and time-sensitive refund issues. You can sometimes use both routes in parallel - start with chargeback for speed, fall back to Section 75 if chargeback fails.

How to make a claim

• Step 1: Try the retailer first. Card issuers usually require evidence you attempted to resolve directly. Keep emails and written records.
• Step 2: Gather documentation. Receipt, credit card statement showing the transaction, contract or order confirmation, any correspondence with the retailer, photographs of faulty goods.
• Step 3: Contact the card issuer. Use their dispute form, online portal, or written claim. Specifically reference "Section 75 of the Consumer Credit Act 1974" - this signals you know your rights.
• Step 4: State the claim clearly. What you bought, what went wrong, what loss you suffered, the amount claimed.
• Step 5: Wait for the issuer's response. They have a duty to investigate. Most claims are decided within 4 to 8 weeks; complex claims take longer.
• Step 6: If refused, escalate. The issuer must give a final response within 8 weeks of your complaint. After that, the Financial Ombudsman Service can take the case, free of charge, within 6 months of the final response.

Common reasons claims are refused (and how to challenge them)

• "You authorised the transaction." Section 75 is about breach of contract or misrepresentation after the transaction, not about whether you authorised it. Press for written reasons referencing the actual statute.
• "You should claim from the retailer first." Joint and several liability means you can claim from either the retailer or the issuer. You are not required to exhaust retailer remedies, although evidence you tried strengthens the claim.
• "The retailer is in administration so we can't recover." This is precisely a situation Section 75 protects against. The issuer cannot refuse on the grounds that they cannot recover from the supplier.
• "PayPal/third-party processor broke the chain." Sometimes true, but contested. If you paid the retailer directly with the credit card (not via PayPal), the chain is unbroken.
• "Outside time limit." The standard contract limitation period is 6 years in England and Wales (5 in Scotland) from the date the cause of action arose, not from the transaction date. Late discovery of a defect can still be claimable.

Examples

Wedding venue closure

You pay a £2,000 deposit on a credit card for a wedding venue. Six months before the wedding, the venue goes into administration. Section 75 covers the full £2,000 from the credit card issuer, who is jointly liable for the venue's breach of contract.

Airline insolvency

You buy two return flights for £450 on a credit card. The airline collapses before your return flight. ATOL may apply if the flights were part of a package; if not, Section 75 covers the unflown portion of the ticket against the credit card issuer.

Faulty £300 oven

You pay £300 for a new oven on a credit card. It fails within 8 months and the retailer refuses to refund or replace. You can claim the full £300 from your credit card issuer under Section 75 for breach of the Consumer Rights Act 2015's satisfactory-quality obligation.

Builder takes deposit and disappears

You pay a £3,500 deposit on a credit card to a builder for kitchen renovation. They start work, abandon mid-project, and the company is dissolved. Section 75 covers the deposit. Most credit card issuers will pay out once you provide a contract, evidence of incomplete work, and confirmation of company dissolution from Companies House.

Frequently Asked Questions

Does Section 75 apply to overseas purchases?

Yes. The 2007 House of Lords ruling confirmed that Section 75 applies to overseas transactions made on a UK credit card, provided all other conditions are met.

What if I paid with a credit card linked to my debit account?

Section 75 requires an actual credit card (where the issuer extends credit). Charge cards usually qualify. Debit cards do not, although chargeback applies. Some prepaid cards do not qualify; check the card's terms.

How long do I have to claim?

The statutory limitation for breach of contract is six years in England and Wales, five in Scotland, from the date the cause of action arose. Earlier action is always better evidentially.

Can I claim consequential losses?

Yes. Section 75 allows you to recover the same losses you could have recovered from the retailer in a court claim, which can include consequential losses (such as a wedding catering cost incurred because the venue collapsed). The issuer's exposure is the same as the retailer's would have been.

What if I made the purchase as a gift?

The cardholder makes the claim. If the goods are a gift for someone else, the cardholder still has standing because they are the party to the credit transaction.