Know your rights This week: Section 75 claims

I ALWAYS recommend using your credit card to pay for goods and services if the cost is more than £100 and less than £30,000. By doing so, you will receive the protection of section 75 of the Consumer Credit Act, meaning you can claim your money back from your card provider if something goes wrong and the trader fails to help. Over the past few months you’ve been asking me questions about it. Here are the answers:

IS THERE A TIME LIMIT TO CLAIM?

No, you can claim any time. The confusion here is that there is a 120-day limit for chargeback claims.

CAN MY CARD PROVIDER PUT MY SECTION 75 CLAIM THROUGH AS A CHARGEBACK CLAIM?

With credit card purchases you can use chargeback or Section 75. If you are within 120 days of purchase, the card provider will often proceed with a chargeback claim. See Q&A below.

DO I NEED TO COMPLAIN TO THE TRADER FIRST?

Yes and you will need to prove to your card provider that you have done this and given the trader a reasonable period of time to respond.

WHAT SHOULD I DO IF MY CLAIM IS REJECTED?

Go back to your card provider and ask it to reconsider. If this fails, ask for a deadlock letter and then file a claim with the Financial Ombudsman.