So few people use the Section 75 of the Consumer Credit Act 1974. However, what if the company goes bust that you bought the item from? No money in the company to pay you back. That’s where the Section 75 rather usefully comes into play. Buy something for over £100 and under £30,000 and you are covered. (You don’t need to spend the full amount) Covered how? Well…..
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Using a credit card to buy curtains
A few years ago we had some curtains made with a furniture and furnishings company. We paid the deposit on a credit card. The company wanted cash for the remainder. We wouldn’t pay the cash. Even though we would have been covered because we used the credit card we knew something was wrong and if they were going to fleece customers by getting cash and not declaring it to receivers at a later point we would not let them get away with it!
Curtains fitted
Eventually guess who won? So the curtains were put up. As suspected they weren’t good enough.
If you look closely, not at the dust(!) but at the slight differentiation in colour you might agree with me that the curtains were not good enough. As expected, as soon as we tried to get our money back, we could not get any response. Had we have given them cash they would have done a runner with it one assumes and many people who were left out of pocket I’m sure would be pleased that at least the owners didn’t pocket over £1,000 in cash.
Contacting the credit card company using Section 75
So, I contacted the credit card company. It isn’t always as easy as just them paying up. I had to get an independent report. (That was good, the chap forgot to bill us!) I then had to return the curtains to the warehouse. Quite ridiculous given that we knew that no-one was there, but the credit card company insisted. So we sent them back via a courier company (which messed up the delivery by not doing it within specified time and I got my money back for that too!) Anyway, the curtains were brought back to us as undeliverable. Credit card company paid up, we got curtains, not perfect but hey they were free!
When a company goes into administration – Section 75
If a holiday company goes bust, or a store sells you a faulty cooker etc., it is easier to prove so the process of getting your money back will be easier. I had to prove that under the Sale of Goods Act (would now be the Consumer Rights Act 2015) that the items were not satisfactory, which I did, obviously! (Would now be CRA as mentioned above).
When to use Section 75
You can use Section 75 even when a company hasn’t gone bust. That said, it is easier to go straight to the retailer. If the retailer doesn’t pay up you can always go to court like I do, that’s fun. Remember that a debit card does NOT cover you in the same way as a credit card does. Also useful to know is that this Act covers store cards. If the credit card company refuses to help report it to the Financial Ombudsman.
Have you used Section 75?
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3 replies on “How to use Section 75 of the Consumer Credit Act 1974”
Greatest irony is when you’ve been on the phone to some idiot in customer services for hours. They have so totally not sorted out the problem. You threaten to escalate, sue, come round with the heavies and then try to end the conversation. “Is there anything else I can help you with today, Sir,” they are programmed to say. “NO!” I scream, “Just sort this out and that will be fine.” “OK, Sir, is there anything else I can help……….”
Boils down to poor training and lack of common sense. Again!
When Monarch collapsed and I paid on several credit cards over £100 I chased Halifax with Section 75 Law. For weeks their staff tried pushing me off and mostly saying not entitled to it or never heard of it. Eventually I was paid out fully by them but it was totally exhausting and they apologised and gave me £125 compensation and £18 for hour long phone calls! Staff need more training.