Consumer rights group Which? recently found that many financial providers are failing to fully explain what protection shoppers have when something goes wrong with a purchase made by credit card.
Which? tested ten financial providers on their knowledge of credit card payment rights and found that not one of the providers consistently gave good advice. Which? said that this is the third time in three years that they’ve identified gaps in staff knowledge.
A separate survey of consumers also found that a quarter (26%) of people had never heard of Section 75 and 43% of those polled were unable to select the correct definition. For this reason it’s all the more important that you take the time to understand your rights under Section 75 as you could potentially save yourself a lot of money.
So what exactly is Section 75?
Section 75 is part of the Consumer Credit Act and details a form of payment protections that credit cards can offer consumers, especially on larger purchases.
Under Section 75 of the Consumer Credit Act, your credit card company is liable by law if there is a problem with a purchase you’ve made by credit card. This means that if something were to go wrong with a purchase you’ve made by credit card, you can potentially claim your money, repair or replacement back through the card company.
There are some limitations though.
You can only claim under Section 75 of the Consumer Credit Act if you’ve spent more than £100 and less than £30,000.
But here’s the interesting bit, you only need to have paid for part of the product or service by credit card with the remaining cost paid by other means to still be covered. As long as the full amount is paid, in part by credit card and the product or service itself is valued in the £100 – £30,000 range then you should be able to claim.
It’s also worth noting that if you paid by credit card via a company that manages your cards such as PayPal then it’s always worth checking that you’re still covered one your purchases.
What About Abroad?
The same protections apply even when you make purchases while abroad as well as goods bought online, by telephone or mail order delivery to the UK from overseas. Be aware, the purchases still need to fall between the £100 – £30,000 range for you to be covered.
If In Doubt Call the Ombudsman
If you make a claim under Section 75 of the Consumer Credit Act and the credit card company refuses to pay out on your claim then you should always consider referring your claim to the Financial Ombudsman Service. In this circumstance you should ask your credit card company for a letter of deadlock.
If it’s been over eight weeks wince you submitted your claim to the card company then you can also refer your claim to the Ombudsman without a letter of deadlock.
Finding the right card for you.
While we’re on the point of cards, have you checked out the Cards section on your Noddle account? It’s got a really handy function which allows you to see what cards you’re most likely to be approved for if you were to apply. This helps take out the uncertainty when applying for credit as well as helping avoid feelings of embarrassment which can happen if you application were to be declined.
So why not log in now, navigate to the ‘Cards’ section and have a look?