The Consumer Credit Act 1974

If you buy goods or services using a credit card or linked loan, the Section 75 of the Consumer Credit Act 1974 can give you extra protection if things go wrong.

Bank Reclaims provides this particular compensation service on a strictly No-Win No-Fee basis. We do not charge any upfront fees or request any bonds or deposits. Claimants are only invoiced once we have achieved a successful outcome and they have accepted and received the agreed refunded amount from the offending business. The claim process is predominantly hassle free, however we must emphasise that it is subject to certain qualifications and therefore we cannot help all claimants.

THE BASIC CRITERIA

Bank Reclaims will consider No Win No Fee arrangements in the following circumstances:

• The total single item purchase value must be over £100.00 and under £30,000.00.
• A part of or all of the purchase has to have been made with a Credit Card or Linked Loan.
• A claimant must be able to provide documented evidence of the purchase, including credit card and bank statements showing loan repayments.
• The purchase should have taken place less than 5 years aogIf the retailer/supplier has gone bust you are still entitled to claim from the credit card company.
• Purchases made abroad are included.
• Purchases from a since closed credit card account are covered.
• Purchases made through a third party payment platform I.e. PayPal may not covered.
• Purchases from a since closed credit card account are covered.
• Purchases made through a third party payment platform I.e. PayPal may not covered.

Under Section 75 of the Consumer Credit Act 1974, the credit card company is jointly and severally liable for any breach of contract or misrepresentation by the retailer or trader.

This means it is just as responsible as the retailer or trader for the goods or service supplied, allowing the consumer to also put a claim to their credit card company.

They don't have to reach a stalemate with the retailer or trader before they can approach their credit card provider - They can make a claim to both the retailer and credit card provider simultaneously, although obviously they cannot recover losses from both.

This right is particularly useful if the retailer or trader has gone bust, or it doesn't respond to letters or phone calls.

Section 75 of the Consumer Credit Act also applies to foreign transactions as well as goods bought online, by telephone or mail order for delivery to the UK from overseas.

There are some limitations to when a card company is liable along with the retailer or trader. The total value of the goods or service bought must have cost over £100 and not more than £30,000.

Section 75 protection also requires the credit card provider and the seller of goods to be different parties. Section 75 will not apply if the lender is also the supplier.

However, to claim under Section 75 it is not a requirement to have paid more than £100 or the full amount on a credit card – the card company is liable for the full purchase balance even if you made only part of the payment; a deposit for example, was paid by creit card.

It's the value of the goods purchased that is key - not the amount paid on the card.

For example, if the claimant ordered a new sofa from a furniture store and paid a £60 deposit with a credit card and the balance of £600 by cheque, they would be covered for the whole £660 if the dealer went out of business and they didn't receive the sofa.

Section 75 gives the consumer same rights against the card company as you have against the retailer.

So if the claim against the trader is for the cost of fixing or repairing an item, this would be the claim you could bring under Section 75 against the card provider.

However, if claimant bought two items that together cost more than £100, but each cost less than £100, Section 75 would not apply and the card company wouldn't usually be liable.

Remember that a claim is still applicable even if the credit card account and it also applies to credit card transactions made abroad.