Section 75 Chargeback

Neither are purchases on credit cards that are worth less than 100 or more than 30 000.

Section 75 chargeback. If you re thinking that it doesn t sound like a particularly important or interesting piece of legislation though you re dead wrong. Your secret financial superhero. It protects you on any purchases that you make on your credit card between the value of 100 and 30 000.

Section 75 of the consumer credit act. In these cases card providers have a legal obligation to deal with them as per. Chargeback comes with some key differences to section 75 which are worth setting out.

It can often be quicker and easier to sort out any problem with the company you bought the goods or services from. Purchases made on debit or prepaid cards or chargecards are not covered by section 75. It s just one brief item in a major body of consumer credit legislation dating back to 1974.

This little known scheme s taken on much more importance in recent weeks as the coronavirus has led to a spate of cancellations with many asking if section 75 could help. The chargeback scheme is not a legal requirement but a voluntary agreement between card providers and card issuers who set the rules for the scheme. Chargeback and section 75 paying with a debit or credit card can provide customers with additional protection if something goes wrong.

Where section 75 is limited to bigger credit card buys over 100 chargeback potentially covers purchases of any value but the way it works is different. As with chargeback claims you simply contact your card provider and tell them you want to make a section 75 claim. Section 75 of the consumer credit act 1974 is a uk law.

How section 75 could affect your chargeback liability. Section 75 consumer credit act 1974 s 75 cca where a customer has made a booking using a credit card they will be entitled to claim a refund for the booking where the service has not been performed and this has resulted in a breach of the provider s terms and conditions. Section 75 laws mean your credit card must protect purchases over 100 for free so if there s a problem you could get your money back.