Section 75: Your Ultimate Guide to Claiming Refunds for Faulty Goods & Services

Buying goods or services on credit can be convenient, but what happens if something goes wrong? Section 75 of the Consumer Credit Act 1974 offers crucial protection for consumers in the UK. This comprehensive guide will explain Section 75 in detail, outlining your rights and how to successfully claim a refund for faulty goods or unsatisfactory services. We'll cover everything from eligibility criteria to the claim process, ensuring you're fully equipped to navigate potential disputes.

What is Section 75 of the Consumer Credit Act?

Section 75 provides a powerful safety net for UK consumers who've purchased goods or services costing between £100 and £30,000 using a credit agreement. Crucially, it makes the credit provider (e.g., your credit card company) jointly liable with the retailer for a breach of contract. This means you can pursue a refund directly from your credit card company, even if the retailer is unwilling or unable to help. This is a significant advantage over other consumer rights legislation.

Key Differences Between Section 75 and Other Consumer Rights

It's important to distinguish Section 75 from other consumer protection laws, such as the Consumer Rights Act 2015. While the Consumer Rights Act deals with faulty goods and services regardless of payment method, Section 75 specifically targets credit agreements. Here's a comparison:

• Section 75: Applies only to credit agreements for goods or services costing between £100 and £30,000. Makes the credit provider jointly liable with the retailer.
• Consumer Rights Act 2015: Applies to all goods and services, regardless of payment method. Deals with faulty goods, unsatisfactory services, and breaches of contract.

Understanding these differences is key to choosing the most effective route for pursuing your claim.

Am I Eligible for Section 75 Protection?

To be eligible for Section 75 protection, several conditions must be met:

• Credit Agreement: The purchase must have been made using a credit agreement, such as a credit card, store card, or personal loan. Debit cards and cash payments are not covered.
• Cost Threshold: The value of the goods or services must be between £100 and £30,000.
• Single Transaction: The purchase must be a single transaction and not a series of smaller purchases.
• UK Retailer: The retailer must be based in the UK.
• Breach of Contract: There must be a demonstrable breach of contract, such as faulty goods, unsatisfactory services, or failure to deliver.

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

Making a Section 75 claim involves several steps:

1. Gather Evidence: Compile all relevant documentation, including your credit card statement, purchase receipt, and evidence of the faulty goods or unsatisfactory service (photos, videos, repair quotes, etc.).
2. Contact the Retailer: It's advisable to initially contact the retailer to inform them of the problem and attempt to resolve the issue amicably. Keep records of all communication.
3. Formal Complaint to the Credit Provider: If the retailer is unresponsive or unable to resolve the issue, submit a formal written complaint to your credit card company. Clearly outline the problem, provide all supporting evidence, and state your intention to claim under Section 75.
4. Follow Up: Your credit card company will investigate the claim. Be prepared to provide further information if requested. Keep track of all communication and deadlines.
5. Consider Alternative Dispute Resolution (ADR): If the credit card company rejects your claim, you can consider using an Alternative Dispute Resolution (ADR) scheme, such as the Financial Ombudsman Service (FOS).

What if My Claim is Rejected?

If your claim is rejected, don't give up. You have the right to appeal the decision. The Financial Ombudsman Service (FOS) is an independent body that can review your complaint. They can investigate the case and make a binding decision. The FOS is particularly useful for resolving disputes with financial institutions, including credit card companies.

Section 75 Claim Examples:

• A faulty washing machine purchased using a credit card.
• A holiday package that was not as described, booked using a store card.
• A damaged sofa delivered after purchase using a personal loan.

Choosing the Right Route for Your Claim

Choosing between using Section 75 and the Consumer Rights Act 2015 depends on the circumstances. If the purchase was made with credit and costs between £100 and £30,000, Section 75 might be the more efficient route, leveraging the joint liability of the credit provider. However, if the purchase was made using cash or a debit card, or the purchase falls outside the £100-£30,000 range, then the Consumer Rights Act 2015 will be applicable.

Key Takeaways:

Section 75 of the Consumer Credit Act provides valuable protection for consumers in the UK when purchasing goods or services using credit. Understanding your rights and following the steps outlined above can significantly increase your chances of a successful claim, recovering the cost of faulty goods or unsatisfactory services. Remember to gather evidence, communicate clearly, and persist if your claim is initially rejected. You have rights, and knowing how to utilize them can save you significant expense and frustration. Don't hesitate to seek professional legal advice if you are struggling to navigate the process.