What is Section 75 protection?

Can I use Section 75 for a holiday refund? 

A Section 75 holiday refund allows you to claim back money from your credit card provider if something goes wrong with your holiday purchase. Under Section 75 of the Consumer Credit Act 1974, your credit card provider is equally liable with the holiday provider for breaches of contract or misrepresentation, provided: 

• The holiday cost between £100 and £30,000. 

• You paid for any part of the holiday with your credit card (even just the deposit). 

You can make a Section 75 claim in cases such as: 

• The holiday company goes out of business. 

• The holiday is significantly not as described, e.g., a different hotel, no flights. 

• You didn’t receive the service you paid for, e.g., a cancelled holiday without a refund. 

Is there a time limit on Section 75 claims? 

Yes, there is a time limit for making a Section 75 claim. You must submit your claim within six years from the date of the breach of contract, or the date you first became aware of the problem. This time frame applies in England, Wales, and Northern Ireland. In Scotland, the time limit is five years. 

While you have up to six years, it's best to file the claim as soon as possible after discovering the issue. This can make it easier to gather evidence and resolve the claim faster. 

How long does a Section 75 claim take? 

A Section 75 claim can take anywhere from a few weeks to several months, depending on the complexity of the case and the responsiveness of both the credit provider and the seller.

On average, it can take between 30 and 60 days for the credit provider to investigate and resolve the claim.

The process can be delayed if: 

• Additional evidence or documentation is needed. 

• The seller disputes the claim. 

• The claim involves large amounts or complex transactions. 

If the credit provider refuses the claim, you can escalate it to the Financial Ombudsman Service (FOS), which may take additional time (typically a few months) to investigate and provide a decision. 

How long does a credit card refund take?

Credit card refunds can take anywhere from 3 to 14 working days, depending on the retailer and your card provider. In most cases, the money is returned to your available credit within 5 to 7 business days, but it can take longer during busy periods or if the refund is delayed by the seller.

What happens when you get a refund on a credit card with zero balance?

If your credit card balance is at £0 and you receive a refund—either through Section 75 or from the seller directly—you won’t lose that money. The refund will be added as a positive balance (also called a credit) on your card, which you can use for future purchases or request to have transferred back to your bank account.

Can a Section 75 claim be reversed? 

Yes, a Section 75 claim can be reversed under certain circumstances. If the credit provider initially accepts the claim and later discovers new information, such as: 

• Evidence that contradicts the original claim. 

• The seller successfully disputes the claim. 

• The claim is found to be fraudulent or ineligible. 

In these cases, the credit provider may reverse their decision and request the repayment of any funds already reimbursed. However, you would be informed of the reversal and given an opportunity to challenge the decision or provide additional evidence to support your claim. 

What Section 75 doesn’t cover 

There are some exceptions to Section 75 protection:

Purchases below £100 and above £30,000 aren’t covered by Section 75. You might still have some refund rights, but they won’t be as comprehensive.

Third-party payment processors. If you used a third-party payment processor like PayPal, Stripe, or GoCardless, you may not be covered by Section 75. It’s always best to check with your provider.

Debit cards. Section 75 does not apply to debit cards. It only applies to credit cards. However, debit cards and some other payment methods may offer protection through different schemes like Chargeback, but these are not as robust as Section 75.

Does credit card purchase protection apply to purchases under £100?

Section 75 only covers purchases between £100 and £30,000, but what if your item costs less than £100? You may still have options for getting your money back—even though Section 75 won’t apply.

What additional forms of purchase protection are available?  

If Section 75 isn’t suitable for your situation, there is another form of purchase protection that can be applied to both credit cards and debit cards: