When something goes wrong with a purchase — a faulty item, a company going bust, or goods that never arrive — you do not have to just accept the loss. In the UK, two powerful tools exist to help you get your money back: Section 75 and chargeback. Understanding when and how to use each can save you hundreds or even thousands of pounds.
Section 75: Your Legal Right
Section 75 of the Consumer Credit Act 1974 is one of the strongest consumer protections in the UK. It makes your credit card provider jointly liable with the retailer for any breach of contract.
How It Works
If you pay for goods or services costing between £100 and £30,000 using a credit card, your card provider is equally responsible if something goes wrong. This means you can claim directly from the card provider — even if the retailer has gone bust or refuses to cooperate.
Key Rules
| Rule | Detail |
|---|---|
| Purchase amount | £100 to £30,000 |
| Card type | Credit card only (not debit) |
| Time limit | Up to 6 years from purchase |
| Joint liability | Card provider and retailer |
| Covers | Faulty goods, non-delivery, misrepresentation, company insolvency |
What Section 75 Covers
- Faulty goods — items that do not work as described or are not fit for purpose
- Company went bust — the retailer or supplier has entered liquidation
- Goods not delivered — you paid but never received the item
- Misrepresentation — the product was significantly different from what was described
- Services not provided — you paid for a service that was never delivered
What Section 75 Does NOT Cover
- Debit card purchases (use chargeback instead)
- PayPal payments unless funded directly by a credit card
- Purchases under £100
- Purchases over £30,000
- Gift cards or vouchers
How to Make a Section 75 Claim
- Contact your credit card provider first — call the number on the back of your card or use their online complaints process
- State clearly what happened — explain the issue, when you bought the item, and what you want (full refund, repair, or replacement)
- Reference Section 75 — mention the Consumer Credit Act 1974 Section 75
- Provide evidence — receipts, emails, photos of faulty items, correspondence with the retailer
- Wait for a response — the card provider has 8 weeks to respond
- Escalate if needed — if you are not satisfied, escalate to the Financial Ombudsman
Real Example: Airline Went Bust
Sarah booked a holiday for £2,400 using her credit card. Two weeks before departure, the airline went into administration. The airline offered no refund and the administrator confirmed there would be no payout to customers.
What Sarah did:
- Contacted her credit card provider (Barclaycard)
- Referenced Section 75 and provided her booking confirmation and proof the airline had ceased trading
- Requested a full refund of £2,400
Result: Barclaycard investigated and issued a full refund within 6 weeks.
Chargeback: Your Bank’s Voluntary Scheme
Chargeback is a scheme run by Visa, Mastercard, and American Express. Unlike Section 75, it is not a legal right — it is a voluntary scheme that your bank or card provider may offer at their discretion.
How It Works
When you request a chargeback, your bank contacts the merchant’s bank to reverse the transaction. If approved, the money is returned to your account. The process is faster than Section 75 but less reliable because the bank can refuse.
Key Rules
| Rule | Detail |
|---|---|
| Purchase amount | Any amount |
| Card type | Debit or credit card |
| Time limit | Usually 120 days from transaction |
| Legal status | Not a legal right — bank policy |
| Covers | Fraud, non-delivery, unauthorised transactions, faulty goods |
What Chargeback Covers
- Unauthorised transactions — someone used your card without permission
- Goods not received — you paid but the item never arrived
- Faulty goods — the item was defective or not as described
- Company went bust — the retailer ceased trading after your purchase
- Duplicate charges — you were charged more than once
What Chargeback Does NOT Cover
- Time-barred claims (over 120 days)
- Cash advances or gambling transactions
- Payments made to friends or family
- Disputes where you have already received a refund
How to Make a Chargeback Claim
- Contact your bank or card provider — call the number on the back of your card
- Explain the issue — describe what happened and why you want a refund
- Provide evidence — receipts, delivery confirmations, correspondence with the retailer
- Wait for investigation — the bank will contact the merchant’s bank
- Outcome — the chargeback is usually processed within 4-8 weeks
Real Example: Faulty Laptop
James bought a laptop for £899 using his debit card. After three months, the screen developed dead pixels and the battery stopped holding charge. The retailer offered a repair but said it would take six weeks. James wanted a refund.
What James did:
- Contacted his bank (Nationwide) and requested a chargeback
- Explained the fault and provided photos and emails to the retailer
- Requested a full refund of £899
Result: Nationwide processed the chargeback within 4 weeks and credited £899 to James’s account.
Real Example: Company Dissolved
Priya paid £350 for custom curtains using her debit card. The company took the money but never delivered the goods. When she called, the phone was disconnected. A Companies House check showed the company had been dissolved.
What Priya did:
- Contacted her bank (HSBC) and requested a chargeback
- Provided proof of payment, the dissolved company status, and screenshots of unanswered emails
- Requested a full refund of £350
Result: HSBC approved the chargeback within 6 weeks and credited £350 to Priya’s account.
Section 75 vs Chargeback: When to Use Each
| Situation | Best Option | Why |
|---|---|---|
| Faulty goods over £100 | Section 75 | Legal right, stronger protection |
| Faulty goods under £100 | Chargeback | Only option for debit card purchases |
| Company went bust | Either (Section 75 for credit card, chargeback for debit) | Both cover insolvency |
| Goods not delivered | Chargeback (under £100) or Section 75 (over £100) | Depends on amount and card type |
| Unauthorised transaction | Chargeback | Designed for fraud |
| PayPal payment | Chargeback (if funded by credit card through PayPal may qualify for Section 75) | Complex — check with card provider |
| Over 120 days ago | Section 75 | Longer time limit (up to 6 years) |
Step-by-Step: Making a Claim
Step 1: Gather Your Evidence
Before contacting your card provider, collect:
- Proof of purchase (receipt, bank statement, confirmation email)
- Description of the fault or issue
- Photos or videos (if applicable)
- Correspondence with the retailer (emails, letters, call logs)
- Any responses from the retailer
Step 2: Contact Your Card Provider
- Call the number on the back of your card
- State clearly that you want to make a claim
- For credit card: reference Section 75 of the Consumer Credit Act 1974
- For debit card or under £100: request a chargeback
- Provide all your evidence
Step 3: Follow Up in Writing
After your phone call, send a written follow-up (email or letter) summarising:
- What you told them on the phone
- What you want (refund, repair, replacement)
- A deadline for response (usually 14 days)
Step 4: Escalate if Needed
If your card provider refuses or you are not satisfied with the outcome:
- Ask for a deadlock letter — a formal confirmation that the provider will not take further action
- Contact the Financial Ombudsman — this is a free, independent service that resolves disputes between consumers and financial firms
- Phone: 0800 023 4567
- Website: financial-ombudsman.org.uk
- You have 6 months from the deadlock letter to escalate
- Small Claims Court — for amounts up to £10,000 in England and Wales, you can file a claim online at gov.uk
Real Example: Holiday Cancelled
Mark paid £1,800 for a package holiday using his credit card. Two weeks before departure, the travel company cancelled and offered no refund. The company was still trading but refused to issue a refund.
What Mark did:
- Contacted his credit card provider (Halifax) and referenced Section 75
- Provided booking confirmation, cancellation notice, and emails to the travel company
- Requested a full refund of £1,800
Result: Halifax investigated and issued a full refund within 8 weeks. Mark later learned the travel company eventually went into administration, confirming he made the right call by claiming through his card provider.
Tips for Successful Claims
- Always pay by credit card for purchases over £100 — this gives you Section 75 protection
- Act quickly — chargeback has a 120-day limit, and the sooner you claim the better
- Keep all records — receipts, emails, photos, and bank statements
- Be clear and specific — state exactly what happened and what you want
- Escalate to the Financial Ombudsman if needed — it is free and independent
- Do not accept a repair if you want a refund — the Consumer Rights Act gives you the right to reject faulty goods within 30 days
- Check if multiple cards were used — if part was paid by credit card and part by debit, you may be able to claim separately under Section 75 and chargeback
Summary
Section 75 and chargeback are powerful tools for getting your money back when things go wrong. Section 75 is a legal right that applies to credit card purchases between £100 and £30,000, while chargeback is a voluntary scheme that works for both debit and credit cards but has a shorter time limit. Always gather your evidence, contact your card provider promptly, and escalate to the Financial Ombudsman if you are not satisfied with the outcome. The key takeaway: always pay by credit card for big purchases to maximise your protection.