SUE’S GUIDE TO A Magic Rule With Credit Cards
Credit cards can be a handy way to pay as you can bag points or cashback and spread the cost of big purchases. Also, they also come with a handy bit of extra protection when it comes to your rights. A special rule known as Section 75 kicks in if you buy faulty goods or ser vices, or the company you buy from goes bust. It means if you book flight tickets and the airline goes bust, or your new washing machine arrives damaged and the store won’t play ball, you’ve got back up! Section 75 of the Consumer Credit Act is legal protection that makes both the retailer and card company responsible. How does it work? You’re covered if you pay by credit card for something that costs over £100, but under £30,000, and this applies even if you only pay a deposit with your card. Are there any loopholes? This rule only applies when buying ser vices or goods direct. So if you buy flights through a travel agent, rather than booking with the airline, this won’t count. Making a claim Get in touch with the retailer first. If they refuse to help, or the company has gone bust, speak to your credit card company. Ask to make a Section 75 claim and they’ll get things moving. I used it once! After a hotel I’d booked went bust, I rang my credit card company, asked for a Section 75 form. I got my money back in a few weeks.
SUE’S TIPS:
◆ All credit cards come with built-in Section 75 cover. ◆ One in three of us don’t know about this protection rule. ◆ The Section 75 rule only applies to credit card payments. ◆ If you pay by debit card, a different set of rules apply which means you can claim through your bank under the “Chargeback” scheme.