Buying faulty appliances with credit cards protection
If an appliance bought on a credit card is faulty, not delivered, or the retailer has gone bust, a full refund can be claimed directly from the credit card company under Section 75 of the Consumer Credit Act – as long as the total purchase price was between £100 and £30,000.
Buying an appliance with a credit card provides extra legal protection that many consumers are not aware of. Under Section 75 of the Consumer Credit Act, the credit card company is jointly liable with the retailer for purchases over £100 – which can make claiming a refund significantly easier.
How Section 75 Protection Works
Section 75 of the Consumer Credit Act makes a credit card company jointly liable with a retailer for any purchase where the total price is between £100 and £30,000, even if only part of the payment was made on the credit card. This applies when:
- The goods were not delivered
- The goods arrived faulty or not as described
- The retailer has gone out of business
Credit card companies are not always forthcoming about this protection. In practice, many initially resist Section 75 claims, but the legal liability is clear. If the retailer is refusing to help or is no longer trading, the credit card company can be pursued directly.
The Deposit Scenario – More Protection Than Expected
One aspect of Section 75 that surprises many people – and that credit card companies themselves sometimes get wrong – is that paying only a partial deposit on the card still triggers full liability for the entire purchase amount.
Which? investigated this with a specific scenario: a purchase of £400 total, with an £80 deposit paid by credit card and the rest paid by cheque. The retailer then went bust before delivering the goods. Despite the fact that the credit card was only used for £80 – below the £100 minimum threshold – Which? found that the credit card company is still liable for the full £400.
Of the 50 telephone calls Which? made to major UK credit card companies to check this, 33 gave the wrong information and incorrectly stated that the company was only liable for the £80 they had handled. When challenged on this, the companies accepted the correct position.
If told the company is only responsible for the amount paid on the card rather than the full purchase price, challenge this. Section 75 makes the credit card company jointly liable for the total value of the transaction.
When to Use Section 75
In most cases it is simpler to deal directly with the retailer first. However, if the retailer is being uncooperative, is refusing a valid refund claim, or has gone out of business, Section 75 provides a direct route to a full refund through the credit card company.
For independent guidance on using Section 75 and other consumer rights, Which? members can access direct telephone advice.
Frequently Asked Questions
What is Section 75 protection on a credit card?
Section 75 of the Consumer Credit Act makes a credit card company jointly liable with a retailer for purchases between £100 and £30,000. If the goods are not delivered, arrive faulty, or the retailer goes bust, the full purchase price can be claimed from the credit card company – even if only a partial payment was made on the card.
Does Section 75 apply if I only paid a deposit on the credit card?
Yes – and this is widely misunderstood, including by credit card companies themselves. Even if only a partial deposit was paid by credit card and the remainder by another method, the credit card company can still be liable for the full purchase amount under Section 75. This applies as long as the total transaction value was over £100.
What if the credit card company refuses my Section 75 claim?
If the credit card company incorrectly refuses or dismisses a valid Section 75 claim, raise a formal complaint with the company directly. If the complaint is not resolved, it can be escalated to the Financial Ombudsman Service, which adjudicates disputes between consumers and financial companies free of charge.
Can I use Section 75 for online purchases?
Yes. Section 75 applies to credit card purchases whether made in a shop, online, or over the telephone, as long as the purchase price is between £100 and £30,000 and the purchase was made on a credit card (not a debit card – debit card purchases may be covered by a separate chargeback scheme instead).