Distance selling - fraudulent use of your payment card
04 Apr 2018
04 Apr 2018
Driving Licence Changes
04 Apr 2018
A common consumer query is how to get your money back when goods or services aren’t delivered or not as agreed. In addition, goods may be faulty, not as described or the seller has gone out of business.
Usually, in the first instance, you would go back to the seller (or service provider) to get your money back. But this isn’t always possible – the company may have gone out of business or they are not replying to you.
How did you pay? Was it with a credit card, debit card or through PayPal?
Credit card payments, in general, offer the most protection as not only is the seller liable to refund you, your credit card company is jointly liable, under the consumer credit act via a “Section 75” claim. Although you will only get refunded by one of these.
NOTE: Credit cards are the main area covered, but the law also applies to store cards, store instalment credit and some car finance agreements (though not hire purchase).
Section 75 claims cover purchases between £100 and £30,000. If your purchase was for less than £100, you aren’t covered, nor are Debit cards, but there is a way around that (more on that next week).
Some typical examples:
If you pay a deposit for something with your credit card, even if the deposit is less than £100, but pay the rest another way, you are still covered, so long as the total cost is between the limits above.
How do you make a claim?
Write to your credit card company saying you want to make a claim under “Section 75 of the Consumer Credit Act”. Templates letters can be found at:
If the card company comes back to you saying – go back to your supplier – you can still argue that as they are jointly liable (and you may well have had no joy from the supplier) they are liable to settle the claim. Some smaller companies may well want you to go to court rather than settle – this is another reason to continue a claim against the card company.
Should you still not recover your money, you can take your claim to the Financial Ombudsman. There are some success stories on their website, as well as common misunderstandings:
For full information about claiming via section 75 see:
Should your claim be for over £30,000 but under £60,260, you can make a claim under section 75a.
BUT you will have to have exhausted all possible ways of getting a refund from the supplier.
WARNING: Not all credit card transactions are covered. How to get a refund if you’ve used your debit card and other exceptions to section 75 – next time!
For general information about consumer issues see: