Section 75 Claim: Powerful UK Credit Card Protection

What Is Section 75 of the Consumer Credit Act?

Section 75 of the Consumer Credit Act 1974 is one of the most powerful consumer protection laws in the UK. It makes your credit card company equally liable with the retailer or service provider if something goes wrong with a purchase you made using your credit card.

This means if you buy something with your credit card and the seller breaches the contract, misrepresents the product, or goes bust, you can claim a full refund directly from your credit card company. You don't need to wait for the seller to respond or go through lengthy dispute processes—your card issuer has the same legal responsibility as the merchant.

Section 75 is a legal right, not a voluntary scheme. Every credit card company operating in the UK must comply with it. This is fundamentally different from chargeback, which is a voluntary scheme run by card networks like Visa and Mastercard.

Key Protection Under Section 75:

✅ Equal liability: Credit card company is just as responsible as the seller
✅ Covers breach of contract: Goods not as described, service not provided
✅ Misrepresentation protection: False claims about products or services
✅ Company insolvency: Get money back even if seller goes bankrupt
✅ Deposit protection: Even partial payment on credit card triggers protection
✅ Up to 6 years to claim: Much longer than chargeback's 120 days

How Section 75 Claims Work

Section 75 creates what's known as "joint and several liability." This legal term means the credit card company and the seller are both fully responsible for any breach of contract or misrepresentation. You can pursue either party—or both—for the full amount owed.

Here's the crucial distinction: with Section 75, your credit card company isn't just helping you dispute a transaction (like with chargeback). They're actually liable themselves under the law. This gives you much stronger recourse.

The Section 75 Chain

For Section 75 to apply, there needs to be a "debtor-creditor-supplier" chain. In plain English, this means:

Debtor: You (the cardholder)
Creditor: Your credit card company
Supplier: The business you bought from

This chain can sometimes be broken when you pay through certain intermediaries or payment processors, which is why it's important to understand when Section 75 applies (see eligibility section below).

Real-World Example

Sarah's Kitchen Scenario:

Sarah paid a £500 deposit on her credit card for a £4,500 kitchen installation. She paid the remaining £4,000 by bank transfer. The company installed the kitchen poorly—wrong measurements, damaged cabinets, incomplete work. Then the company went into administration.

Section 75 Protection: Even though Sarah only paid £500 on her credit card, she could claim the full £4,500 from her credit card company under Section 75. The protection covers the entire transaction, not just the amount paid on the credit card, as long as the total is between £100 and £30,000.

Sarah submitted her claim with photos of the faulty work, the contract, and evidence of the company's insolvency. Her credit card company refunded the full £4,500 within 6 weeks.

Section 75 Eligibility Requirements

Not every credit card purchase is covered by Section 75. You need to meet specific criteria for the protection to apply. Here's what's required:

1. Purchase Value: £100 to £30,000

The total cost of the item or service must be more than £100 and less than £30,000. This is the total purchase price, not just the amount you put on your credit card.

✅ Covered: £150 hotel booking paid entirely on credit card
✅ Covered: £5,000 sofa where you paid £200 deposit on credit card, £4,800 cash
❌ Not covered: £80 jacket (below £100 minimum)
❌ Not covered: £35,000 car (above £30,000 maximum)

Note: For purchases above £30,000 or below £100, you can still try chargeback instead.

2. Must Use a Credit Card

Section 75 only applies to credit cards. It does NOT cover:

❌ Debit cards
❌ Prepaid cards
❌ Charge cards (some exceptions for American Express credit cards)
❌ Buy Now Pay Later services (Klarna, Clearpay, etc.)
❌ PayPal Credit (unless used through a Section 75-eligible credit card)

If you used a debit card, you'll need to pursue a chargeback claim instead. Chargeback has no minimum purchase amount but only gives you 120 days to claim.

3. Breach of Contract or Misrepresentation

You can't claim under Section 75 just because you changed your mind. There must be a genuine problem with the purchase:

✅ Valid Section 75 Claims:

• Goods not delivered
• Service not provided as contracted
• Item significantly not as described
• Faulty or defective goods
• Company went bankrupt before delivery
• False advertising/misrepresentation
• Poor quality service (breach of contract)

❌ Not Valid Section 75 Claims:

• Changed your mind
• Found it cheaper elsewhere
• Minor dissatisfaction (subjective)
• Buyer's remorse
• Item damaged after delivery (unless inherent defect)
• Cosmetic preferences not met

4. Direct Payment to Supplier (Usually)

Section 75 typically requires you to pay the supplier directly with your credit card. However, recent court cases have expanded this:

✅ Covered: Direct payment to retailer
✅ Covered: Payment to travel agent for holiday package
⚠️ Maybe covered: Payment through PayPal to merchant (case-by-case)
❌ Generally not covered: PayPal purchases where PayPal is the merchant of record
❌ Not covered: Cash withdrawals to pay supplier
❌ Not covered: Money transfers/wire transfers using credit card

The "debtor-creditor-supplier" chain must be intact. Some payment intermediaries break this chain, which can affect Section 75 protection. If in doubt, try filing the claim—your card company will assess eligibility.

5. UK-Based Credit Card Agreement

Your credit card agreement must be regulated by UK law. This usually means:

✅ UK-issued credit cards (Barclaycard, HSBC, Lloyds, etc.)
✅ Credit cards from UK-regulated banks
⚠️ Some international purchases may still be covered
❌ Foreign-issued cards generally not covered by UK Section 75

Section 75 vs Chargeback: Which Should You Use?

Both Section 75 and chargeback can help you get money back when purchases go wrong, but they're fundamentally different. Here's a comprehensive comparison:

Feature	Section 75	Chargeback
Legal Status	✅ UK law (Consumer Credit Act 1974)	⚠️ Voluntary scheme (Visa/Mastercard rules)
Card Types	Credit cards ONLY	Credit AND debit cards
Purchase Amount	£100 to £30,000 (total purchase)	Any amount
Time Limit	✅ 6 years (England/Wales), 5 years (Scotland)	⚠️ 120 days only
Partial Payment	✅ Covered (deposit on credit card protects full amount)	❌ Must pay full amount on card
Liability	✅ Card company EQUALLY LIABLE with seller	⚠️ Card company helps dispute; no guarantee
Success Rate	✅ High (especially with evidence)	⚠️ Variable (merchant can contest)
Appeal Rights	✅ Free appeal to Financial Ombudsman	⚠️ Limited appeal options
Merchant Dispute	✅ Doesn't matter—card company is liable anyway	⚠️ Merchant can contest and win

When to Use Section 75

Use Section 75 when:

✅ You paid with a credit card
✅ Purchase value was £100-£30,000
✅ It's been more than 120 days (too late for chargeback)
✅ You only paid a deposit on credit card but want full refund
✅ The company has gone bust
✅ Clear breach of contract or misrepresentation
✅ You want the strongest legal protection

When to Use Chargeback

Use Chargeback when:

✅ You paid with a debit card
✅ Purchase was under £100
✅ Purchase was over £30,000
✅ It's been less than 120 days
✅ You paid the full amount on the card (not just deposit)
✅ Section 75 doesn't apply for some reason

Can You Use Both?

Technically, you can't pursue both Section 75 and chargeback simultaneously for the same purchase. However, you can try one first, and if it fails, try the other (as long as you're within the time limits). Many experts recommend trying Section 75 first if you're eligible because it's stronger legal protection.

Common Scenarios Where Section 75 Helps

Section 75 is incredibly versatile. Here are the most common situations where it can save you money:

🛒 Faulty or Defective Goods

Bought a laptop that stopped working after 2 months? Sofa arrived damaged? Kitchen appliances that never worked properly? If the seller won't replace or refund, your credit card company is equally liable under Section 75.

Tip: Keep evidence of the fault (photos, expert reports) and correspondence with the seller.

📦 Non-Delivery of Goods

Paid for furniture that never arrived? Pre-ordered a product that the company never shipped? If the seller can't or won't deliver, claim the full amount back from your credit card company.

Tip: Section 75 is especially powerful here because you don't need to wait for the seller to respond.

🏢 Company Gone Bust

The company went into administration or liquidation before delivering your goods or services? Section 75 gives you a direct claim against your credit card company. You don't have to join the queue of creditors hoping for pennies on the pound.

Success rate: Very high (~95%) in insolvency cases with proper evidence.

✈️ Holiday or Travel Issues

Hotel significantly not as described? Tour operator failed to provide booked excursions? Flight-inclusive holiday cancelled and not refunded? Section 75 covers travel purchases, and you can claim even if you only paid the deposit on your credit card.

Note: Separate flights/hotels may not be covered as a "package."

🏠 Home Improvements Gone Wrong

Paid for a new bathroom, kitchen, or conservatory that was installed poorly or never completed? Section 75 can recover your money if you paid the deposit (or full amount) on credit card—even if the rest was paid by other means.

Example: £500 deposit on credit card for £8,000 kitchen = full £8,000 protected.

🎓 Course or Event Not as Described

Paid for a training course, certification program, or event ticket that was cancelled, significantly downgraded, or misrepresented? Section 75 covers educational and entertainment purchases if there's a clear breach of contract.

Tip: Keep the original marketing materials showing what was promised.

🚗 Vehicle or High-Value Items

Bought a second-hand car, expensive jewelry, or collectibles that turned out to be fake, stolen, or significantly not as described? Section 75 protects purchases up to £30,000. (For cars over £30,000, Section 75 doesn't apply, but you may have other legal recourse.)

Note: Expert verification of the misrepresentation strengthens your claim.

💍 Wedding Services

Venue cancelled your wedding? Photographer didn't show up? Caterer provided substandard service? Wedding purchases between £100-£30,000 on credit card are covered. This can be a lifeline when deposits are lost or services aren't delivered.

Tip: Always pay wedding deposits on credit card for this protection.

How to Make a Section 75 Claim: Step-by-Step

Making a Section 75 claim is straightforward, but following these steps carefully will maximize your chances of success:

Step 1: Try to Resolve with the Seller First (Optional but Recommended)

Legally, you don't have to contact the seller before making a Section 75 claim—your credit card company is equally liable regardless. However, many card issuers prefer to see that you've attempted resolution with the merchant first. It also strengthens your case.

• Email or write to the seller explaining the problem
• Give them 14-30 days to respond
• Keep copies of all correspondence
• If they refuse or don't respond, move to Step 2

Time-saving tip: If the company has clearly gone bust or is unresponsive, skip straight to your credit card company.

Step 2: Contact Your Credit Card Company

You can make a Section 75 claim by phone, online, or in writing. Most major card issuers have online claim forms. Writing (email or letter) is best because it creates a paper trail.

What to include in your claim:

• Your credit card number and account details
• Transaction date and amount
• Merchant name and contact details
• Clear description of the problem (breach of contract/misrepresentation)
• Evidence (see next section)
• Amount you're claiming
• Mention "Section 75 of the Consumer Credit Act 1974"

Sample claim statement: "I am making a claim under Section 75 of the Consumer Credit Act 1974. I purchased [item] for £[amount] on [date] using my credit card ending [last 4 digits]. The [item/service] [was not delivered / is faulty / was misrepresented]. I have attempted to resolve this with the merchant, but [they refused / didn't respond / went out of business]. I am claiming £[amount] under Section 75."

Step 3: Submit Your Evidence

Strong evidence is crucial. The credit card company will assess whether there's been a breach of contract or misrepresentation. Provide:

• Proof of purchase: Credit card statement, receipt, invoice
• Original contract/terms: Order confirmation, website screenshots (before/after)
• Evidence of breach: Photos, videos, expert reports, delivery tracking
• Correspondence: Emails/letters with the seller showing your attempts to resolve
• Third-party evidence: Reviews, news articles (if company went bust), trading standards reports

The more evidence, the better. Organize it clearly with a cover letter or email explaining each document.

Step 4: Credit Card Company Investigates

Once you submit your claim, your credit card company must investigate. They should:

• Acknowledge your claim (usually within 7-10 days)
• Review your evidence
• May contact the merchant (but aren't required to)
• Assess whether Section 75 applies and if there's been a breach

Timeline:

By law, the card company should respond within 8 weeks. Many claims are resolved within 4-6 weeks. Complex cases (especially high-value claims) may take longer.

If you don't hear back within 8 weeks, follow up in writing. You can also escalate to the Financial Ombudsman at this point.

Step 5: Receive Outcome

The credit card company will either:

✅ Approve your claim: You'll receive a refund (usually to your credit card account, reducing your balance)
⚠️ Partially approve: They may offer a partial refund if they think you share some responsibility
❌ Reject your claim: They'll explain why (usually "no breach of contract" or "Section 75 doesn't apply")

If your claim is rejected, don't give up! You have two options:

Ask the card company to review their decision (provide more evidence if you have it)
Escalate to the Financial Ombudsman Service (see below)

Step 6: Appeal to Financial Ombudsman (If Needed)

If your Section 75 claim is rejected and you disagree, you can appeal to the Financial Ombudsman Service for free. They're an independent body that resolves disputes between consumers and financial companies.

Timeline to appeal:

• You have 6 months from the credit card company's final decision to complain to the Ombudsman
• The Ombudsman can take 3-6 months to investigate
• Their decision is binding on the credit card company (but not on you)

Success rate: The Financial Ombudsman upholds or partially upholds about 50% of complaints they investigate, meaning consumers win or get a partial settlement in half of cases.

Evidence You Need for a Successful Section 75 Claim

The strength of your Section 75 claim depends heavily on your evidence. Here's exactly what to gather for different types of claims:

Essential Evidence (All Claims)

✅ Credit card statement: Showing the transaction date and amount
✅ Receipt or invoice: From the merchant
✅ Order confirmation: Email or letter confirming what you purchased
✅ Contract or terms: What was agreed (T&Cs, product description, service agreement)
✅ Correspondence: All emails, letters, or chat logs with the merchant

For Non-Delivery Claims

• Order confirmation with expected delivery date
• Tracking information (if available) showing non-delivery
• Correspondence chasing delivery
• Proof of address (to show it should have been delivered)
• Evidence merchant acknowledged non-delivery (if applicable)

For Faulty/Defective Goods Claims

• Photos or videos clearly showing the defect
• Expert report or independent assessment (for high-value items)
• Original product description/specifications
• Evidence of when fault appeared (especially if within 6 months of purchase—legal presumption it was faulty at time of sale)
• Correspondence with merchant about the fault
• Repair estimates or attempts to fix (showing it's not repairable)

For Misrepresentation Claims

• Original advertisement, website screenshots, or marketing materials
• What was actually delivered (photos, description)
• Clear comparison showing the difference
• Any false statements made by the seller (emails, sales pitches)
• Proof the misrepresentation was material (i.e., you wouldn't have bought it without that claim)

For Company Insolvency Claims

• Proof of purchase (receipt, confirmation)
• Evidence company went into administration/liquidation (Companies House records, news articles)
• Proof goods/services weren't delivered before insolvency
• Correspondence showing company ceased trading

Good news: Insolvency claims have the highest success rate (~95%) because the breach is clear-cut and the company can't refund you directly.

For Service Not Provided / Breach of Contract

• Service agreement or contract
• Evidence of what was supposed to be provided
• Evidence of what was actually provided (or not provided)
• Photos/videos of substandard work (for home improvements, etc.)
• Expert assessment (e.g., surveyor report for building work)
• Attempts to get merchant to correct the work

Tips for Strong Evidence

✅ More is better: Provide everything you have; let the card company decide what's relevant
✅ Organize clearly: Label documents, create a chronological summary
✅ Be specific: Don't just say "it's faulty"—explain exactly what's wrong and why
✅ Screenshots matter: Especially for misrepresentation (website claims that later changed)
✅ Independent verification: Expert reports carry significant weight for high-value claims
✅ Keep originals: Send copies, not originals (unless specifically requested)

Section 75 Time Limits: How Long Do You Have to Claim?

One of Section 75's biggest advantages over chargeback is the much longer time limit. Here's what you need to know:

Standard Time Limit

6 years in England & Wales | 5 years in Scotland

You generally have 6 years from the date of breach (or date when goods should have been delivered) to make a Section 75 claim in England and Wales. In Scotland, the limit is 5 years.

This is the legal "limitation period" for breach of contract claims in the UK. However, most experts recommend claiming as soon as possible because:

• Evidence is fresher and easier to gather
• The merchant may still be contactable (important for credit card companies' investigations)
• You won't forget details
• Some card companies may informally question very old claims

When Does the Clock Start?

The 6-year time limit starts from:

• Non-delivery: The date when goods should have been delivered (or final agreed delivery date)
• Faulty goods: The date when the fault was discovered (or should reasonably have been discovered)
• Service not provided: The date when service should have been completed
• Misrepresentation: Usually the date of purchase (when misrepresentation induced you to buy)

Comparison: Section 75 vs Chargeback Time Limits

✅ Section 75

6 years (England/Wales)

5 years (Scotland)

This gives you plenty of time to discover faults, gather evidence, and make a claim—even years after purchase.

⚠️ Chargeback

120 days (4 months)

Chargeback has a strict 120-day deadline from the transaction date (or expected delivery date). Miss this, and chargeback is no longer an option—but Section 75 still is if you paid by credit card.

No Formal Time Limit for Claims

Importantly, there's no specific time limit stated in Section 75 itself for making a claim to your credit card company. The 6-year limit is a general contractual limitation period. In practice:

• You can make a Section 75 claim to your card company at any time
• The card company should investigate even old claims
• If they reject it based on time limits, you can appeal to the Financial Ombudsman
• The Ombudsman will assess whether 6 years have truly passed since the breach

Discovered Faults Later?

What if you didn't discover the problem until years after purchase? For example:

• Bought furniture in 2020, but structural defect only became apparent in 2024
• Paid for a course in 2021, but the qualification turned out to be fake in 2025

In these cases, the 6-year clock may start when you discovered the breach (or should reasonably have discovered it), not the purchase date. This is called "discoverability" in law. Always make the claim—let the card company and, if necessary, the Ombudsman decide on time limits.

💡 Bottom Line on Time Limits:

You have much longer with Section 75 than chargeback. Even if you think you might be too late, it's worth trying—especially if you have a strong case. The worst they can say is no, and you can still appeal.

Real Section 75 Success Stories

These real-world examples show how Section 75 has helped UK consumers recover thousands of pounds:

💍 Wedding Venue Bankruptcy: £15,991 Recovered

Paid deposit on credit card, got full refund when venue went bust

Situation: A couple paid a £100 deposit on their credit card for a £15,991 wedding venue booking. They paid the remaining balance by bank transfer. Six months before the wedding, the venue company went into administration without warning.

Action: They immediately contacted their credit card company with evidence: the booking contract, the £100 credit card payment, proof of the full £15,991 payment, and Companies House records showing the insolvency.

Outcome: The credit card company refunded the entire £15,991 under Section 75 within 6 weeks, even though only £100 was paid on the credit card. This is the power of Section 75—the partial payment triggers full protection.

Key Lesson: Always pay wedding deposits (and other large purchases) on a credit card, even if it's just £100.

🏠 Kitchen Disaster: £6,800 Refund + £544 Interest

Poor installation, company unresponsive, full refund via Section 75

Situation: A homeowner paid £6,800 on their credit card for a new kitchen. The company installed it poorly: uneven worktops, misaligned cabinets, non-functional drawers. The company promised to fix it but never returned. Stopped answering calls.

Action: After 3 months of chasing, the homeowner made a Section 75 claim with photos, the original contract, correspondence attempts, and an independent surveyor's report (£200 cost) confirming the installation breached building standards.

Outcome: The credit card company initially offered £3,000 (partial refund). The homeowner rejected this and appealed to the Financial Ombudsman, who awarded the full £6,800 plus £544 statutory interest (8% per year) plus £200 for inconvenience. Total: £7,544.

Key Lesson: Don't accept low partial offers. The Financial Ombudsman often awards full refunds when there's clear breach.

✈️ Holiday Misrepresentation: £4,200 Recovered

Hotel not as described, Section 75 claim successful

Situation: A family booked a "5-star beachfront resort" for £4,200, paying with a credit card. The hotel was actually 3-star, nowhere near the beach (2km away), and had ongoing construction noise throughout their stay. The website photos were clearly misrepresentative.

Action: They complained to the tour operator during the holiday (documented in writing) and upon return. The operator offered £500 compensation, which they rejected. They then made a Section 75 claim with: original website screenshots, booking confirmation, their own photos of the hotel, TripAdvisor reviews confirming the problems, and the tour operator's offer letter (which acknowledged fault by offering compensation).

Outcome: The credit card company refunded £3,200 (about 75% of the cost), reasoning that the holiday had some value but was materially misrepresented. Combined with the £500 from the tour operator, they recovered £3,700 total.

Key Lesson: Keep "before" evidence (website screenshots) because companies often change their sites after complaints.

🛋️ Faulty Furniture: £2,100 Refund

Structural defect discovered 18 months after purchase

Situation: A consumer bought a £2,100 sofa in January 2022 using a credit card. In June 2023 (18 months later), the frame cracked and the sofa collapsed. The retailer claimed it was "wear and tear" and refused to replace or refund.

Action: They made a Section 75 claim arguing the sofa had an inherent defect (structural weakness) that constituted a breach of contract. They provided photos of the broken frame, the original product description promising "hardwood frame built to last decades," and testimony that they'd used the sofa normally.

Outcome: The credit card company initially rejected the claim, saying it was outside the 6-month "presumption of fault" period. The consumer appealed, and the Financial Ombudsman ruled in their favor: a sofa frame should not break after 18 months of normal use, indicating a defect present at purchase. Full £2,100 refund awarded.

Key Lesson: Even claims outside 6 months can succeed if you can prove the defect was inherent (existed at time of sale).

🎓 Course Never Delivered: £1,850 Recovered

Training course provider went bust before starting course

Situation: A student paid £1,850 on a credit card for a professional certification course starting in September 2024. In August, the training company emailed saying they were ceasing operations and wouldn't be running the course. No refunds offered.

Action: Made a Section 75 claim immediately with: course booking confirmation, payment receipt, the company's email admitting they wouldn't deliver, and evidence from Companies House that the company had filed for liquidation.

Outcome: Full £1,850 refund within 4 weeks. Clear-cut case: company admitted breach (non-delivery) and was insolvent. Section 75 success rate in insolvency cases is ~95%.

Key Lesson: When a company goes bust, Section 75 is often your only route to recovering money. Act fast.

Common Success Factors

✅ Strong documentation: All successful cases had clear evidence
✅ Persistence: Many initially rejected claims succeeded on appeal
✅ Clear breach: Could articulate exactly what went wrong
✅ Financial Ombudsman: When card companies said no, Ombudsman often said yes
✅ Credit card payment: Even just a deposit triggers full protection

Why Section 75 Claims Get Rejected (And How to Avoid It)

Not all Section 75 claims succeed. Understanding common rejection reasons helps you avoid them:

1. Purchase Amount Outside £100-£30,000 Range

Why it's rejected: Section 75 only applies if the total purchase value is between £100 and £30,000. A £95 coat or a £35,000 car won't be covered.

✅ Solution: For purchases under £100 or over £30,000, use chargeback instead (must be within 120 days).

2. Paid with Debit Card, Not Credit Card

Why it's rejected: Section 75 protection only applies to credit cards. Debit cards, prepaid cards, and charge cards (with some exceptions) aren't covered.

✅ Solution: For debit card purchases, file a chargeback claim instead (120-day limit).

3. No Breach of Contract or Misrepresentation

Why it's rejected: "I changed my mind" or "I don't like it" aren't valid Section 75 claims. There must be a genuine breach (goods faulty, not delivered, not as described) or misrepresentation (false statements that induced you to buy).

✅ Solution: Clearly articulate the breach. Use phrases like "breach of contract," "not as described," "misrepresentation," "failure to deliver." Provide evidence showing the difference between what was promised and what you got.

4. Insufficient Evidence

Why it's rejected: You claim the item is faulty, but provide no photos, no expert report, no correspondence with the seller. The card company can't assess the claim without evidence.

✅ Solution: Gather comprehensive evidence (see Evidence section above). For high-value or complex claims, get an independent expert report (surveyor, mechanic, appraiser, etc.). Photos and videos are invaluable.

5. Payment Made Through Intermediary That Breaks the Chain

Why it's rejected: You paid through PayPal, and PayPal was the "merchant of record" rather than just a payment processor. This breaks the debtor-creditor-supplier chain required for Section 75.

✅ Solution: This is complex and case-by-case. Recent court rulings have expanded Section 75 to cover some intermediary payments. Always try filing the claim—the card company will assess. If rejected, appeal to the Financial Ombudsman. You may also have PayPal buyer protection as an alternative.

6. Time Limit Exceeded

Why it's rejected: You're claiming for something that happened over 6 years ago (England/Wales) or 5 years ago (Scotland), and the card company says the limitation period has passed.

✅ Solution: Argue that the clock started when you discovered the problem, not the purchase date (especially for latent defects). If rejected, appeal to the Financial Ombudsman—they're more flexible on time limits when there's a good reason for the delay.

7. Merchant Still Willing to Resolve

Why it's rejected: The card company contacts the merchant, and the merchant offers to repair, replace, or partially refund. The card company says "the merchant is resolving this, so Section 75 doesn't apply."

✅ Solution: If the merchant's offer is inadequate (e.g., they offer repair but you want refund, or partial refund when full is justified), insist on your Section 75 rights. The law makes the card company equally liable—you don't have to accept the merchant's lesser offer. Escalate to the Ombudsman if needed.

8. Claim Description Too Vague

Why it's rejected: You say "the holiday was bad" or "the item doesn't work" without specifics. The card company can't assess whether there's a legal breach without details.

✅ Solution: Be specific. Explain exactly what was promised, what you received, and why that constitutes a breach. Use legal terminology (breach of contract, misrepresentation, failure to deliver). Provide measurements, dates, names, and clear comparisons.

💡 If Your Claim Is Rejected:

Request a detailed explanation: Ask why it was rejected in writing
Gather more evidence: Address the specific reasons given
Resubmit or appeal: Most card companies have an internal appeals process
Financial Ombudsman: Free, independent review within 6 months of rejection
Don't give up: Many rejected claims succeed at the Ombudsman stage

Appealing to the Financial Ombudsman Service

If your credit card company rejects your Section 75 claim, you have a free, powerful option: the Financial Ombudsman Service (FOS). Here's how it works:

What Is the Financial Ombudsman?

The Financial Ombudsman Service is an independent public body that resolves disputes between consumers and financial companies (including credit card issuers). It was set up by law to provide a free alternative to going to court.

✅ Free for consumers (financial companies pay)
✅ Independent and impartial
✅ Legally binding on the company (but not on you—you can still go to court if you disagree)
✅ Can award up to £430,000 in compensation

When Can You Complain to the Ombudsman?

You can take your Section 75 complaint to the Ombudsman if:

• Your credit card company has given you their final decision (a "final response letter")
• 8 weeks have passed since you first complained to the card company (and they haven't resolved it)
• You complain within 6 months of receiving the card company's final decision

Important: The 6-month deadline is strict. Don't delay—if your claim is rejected, start the Ombudsman complaint process immediately.

How to Complain to the Ombudsman

Step 1: Complete the Online Complaint Form

Go to financial-ombudsman.org.uk and fill out the complaint form. You'll need:

• Credit card company's name
• Details of your Section 75 claim
• Card company's final response letter (upload it)
• All supporting evidence (same as you sent to card company)

Step 2: Ombudsman Reviews Your Case

An Ombudsman investigator will:

• Review all evidence from both sides
• May request additional information
• Assess whether the card company handled your claim fairly
• Consider the law (Section 75) and good industry practice

Step 3: Receive a Decision

The Ombudsman will issue a decision:

• Upheld: You win; card company must refund you (plus interest and compensation for trouble)
• Partially upheld: Partial refund awarded
• Not upheld: Card company's decision stands

The decision is binding on the credit card company. If you disagree, you can still go to court, but most people accept the Ombudsman's decision because it's final and enforceable.

Timeline

• Initial review: 4-6 weeks for simple cases
• Full investigation: 3-6 months for complex cases
• Delays possible: High caseload can extend timelines

The Ombudsman received over 305,000 complaints in 2024/25—the highest in 6 years—so be patient. However, they prioritize cases where consumers face financial hardship.

Success Rate at the Ombudsman

The Financial Ombudsman upholds or partially upholds about 50% of complaints they investigate. This means consumers win or get a partial settlement in half of cases that reach the Ombudsman—much better odds than giving up after the card company says no.

What the Ombudsman Can Award

✅ Full refund of the purchase amount
✅ Statutory interest at 8% per year
✅ Compensation for distress and inconvenience (typically £100-£500)
✅ Reimbursement of costs (e.g., expert reports you paid for)

💡 Tips for Ombudsman Success:

✅ Be clear and factual: Stick to the facts, avoid emotional language
✅ Emphasize the law: Reference Section 75 explicitly
✅ Provide all evidence: Everything you sent the card company, plus any new evidence
✅ Explain impact: How has this affected you? (Helps justify compensation)
✅ Be patient: The process takes time, but it's free and effective

Contact: Financial Ombudsman Service
Website: financial-ombudsman.org.uk
Phone: 0800 023 4567 (free) or 0300 123 9123
Post: Financial Ombudsman Service, Exchange Tower, London E14 9SR

Section 75 Claim Value Calculator

Estimate your potential recovery under Section 75 based on your purchase details, claim type, and evidence strength. This calculator considers eligibility requirements, success rates, and potential statutory interest.

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This calculator provides an estimate based on typical Section 75 outcomes. Actual results depend on your specific circumstances, evidence quality, and credit card company policies. For personalized advice, start your claim with Compens.ai.

Frequently Asked Questions About Section 75

What is the difference between Section 75 and chargeback?

Does Section 75 cover debit card purchases?

If I only paid a deposit on my credit card, am I still covered for the full amount?

How long do I have to make a Section 75 claim?

Can I use Section 75 if the company has gone bankrupt?

What evidence do I need to make a successful Section 75 claim?

Can I claim under Section 75 for international purchases?

What if my credit card company rejects my Section 75 claim?

Does Section 75 cover holidays and flights?

Can I use Section 75 if I paid through PayPal?

Can I claim under Section 75 if I already got a partial refund from the seller?

Is there a fee to make a Section 75 claim?

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