Section 75 & Chargeback: Your Rights and What to Do When They Fail

When a purchase goes wrong, knowing whether to pursue a Section 75 Consumer Credit Act claim or a chargeback can make the difference between recovering your money and writing off the loss.

Section 75 of the Consumer Credit Act 1974 places your credit card provider on the hook if a retailer breaches its contract or misrepresents goods or services. It applies only to credit card purchases worth more than £100 and up to £30,000 and makes the card company jointly liable with the supplier.
Chargeback, by contrast, is a voluntary card‑scheme dispute mechanism that allows your card issuer to claw back money from a merchant’s bank when goods are not delivered or are defective. It applies to both credit and debit cards, but it is not a statutory right.

This guide explains how section 75 protection and credit card chargebacks work in the UK, how long you have to act, and what to do when your claim is rejected. We finish by showing how CaseCraft.AI helps organise evidence and produce court‑ready documents if you need to take a small claim.

What is Section 75 of the Consumer Credit Act?

Section 75 is a statutory consumer protection provision that makes your credit card company jointly liable with a retailer when goods or services are misrepresented or not provided. It covers purchases over £100 and up to £30,000.

Under Section 75 of the Consumer Credit Act 1974, the debtor (you) and creditor (your credit card provider) are jointly and severally liable for a supplier’s breach of contract or misrepresentation. This is often called a “debtor‑creditor‑supplier” link. It means that if a supplier disappears, goes bust or refuses to honour the contract, you can demand a refund from your card provider instead of (or as well as) pursuing the trader.

Key features of Section 75 protection include:

• Joint liability: The card provider is legally responsible for the supplier’s wrongdoing, so you do not have to prove negligence by the bank, only that the supplier breached its contract.
• Purchase limits: The law applies when the cash price of the goods or services is more than £100 but not more than £30,000. It is the cash price that matters, not the amount charged to the card. You can pay with two payment methods. If a single item costs £250, you could put £1 on your credit card and still make a full Section 75 claim.
• Linked transactions: Section 75 applies to purchases made directly from the supplier using a regulated credit card or a point‑of‑sale loan. It does not apply to third‑party platforms or marketplaces unless there is a direct link between the debtor, creditor and supplier.
• Consumer rights law: Once eligibility is established, the bank must consider whether there was a breach of contract or misrepresentation. The Consumer Rights Act 2015 implies terms of satisfactory quality and reasonable care, so goods must be fit for purpose and services must be performed with reasonable skill.

Which Purchases Does Section 75 Cover?

The law covers credit card purchases of goods or services costing more than £100 and up to £30,000. It applies when you pay the supplier directly using a credit card, a point‑of‑sale loan or a catalogue shopping account.

Not all transactions qualify. You can use Section 75 protection when:

• You paid some or all of the price by credit card. The amount charged to the card can be small; it is the cash price of the item that must exceed £100.
• The supplier is directly linked to you and your card issuer (the debtor‑creditor‑supplier triangle). For example, buying a TV from a retailer qualifies, but paying via an intermediary platform may break the link.
• The goods or services were purchased for personal (non‑business) use. Section 75 protection is generally not available for business purchases.

Situations where Section 75 does not apply include:

• Debit card or charge card purchases: These rely on the chargeback scheme instead.
• Cash withdrawals, credit card cheques and bank transfers: These are not considered direct purchases and fall outside the Consumer Credit Act.
• Third‑party platforms: Buying from marketplaces like Amazon Marketplace or paying through services like PayPal may invalidate the debtor‑creditor‑supplier link. However, some platforms offer their own buyer‑protection schemes.

If your purchase doesn’t fit the Section 75 criteria, for example, if it was under £100 or paid for by debit card, you may still have options through chargeback or by claiming directly against the trader under other consumer laws. For a deeper dive into what to do when a service isn’t delivered, read our service not provided guide. If the issue relates to faulty goods or misdescribed products, see our Faulty Goods, Your Rights and misleading advertising claims guides for practical steps.

Important: CaseCraft.AI handles small claims only. The platform is designed for disputes that fall within the UK small claims process, typically claims valued at up to £10,000 in England and Wales. While section 75 can apply to purchases up to £30,000 under the Consumer Credit Act, CaseCraft.AI supports claims that fit within small claims court limits and procedures.

Section 75 Time Limit: How Long Do You Have?

There is no specific statutory time limit in the Consumer Credit Act, but in practice, you have up to six years to pursue a Section 75 claim. This is because claims are contractual actions subject to the Limitation Act 1980.

The Limitation Act 1980 says that an action founded on a simple contract must be brought within six years of the cause of action. A Section 75 claim is essentially a breach of contract claim against the card provider, so the six‑year limitation normally applies. While the law gives you several years, card providers expect customers to raise disputes reasonably promptly to allow evidence gathering. Acting within six years, and ideally within a few months of discovering the problem, gives you the best chance of success.

The time limit runs from the date of the breach or misrepresentation. If you didn’t receive goods, it runs from the expected delivery date. If you’re claiming for misrepresentation, it begins when you became aware of the misrepresentation. Keeping copies of receipts, contracts and correspondence makes it easier to prove when the cause of action arose and to present a strong Section 75 claim. To understand the wider protections available under UK consumer law, including your statutory rights to refunds, repairs or replacements, read our Consumer Rights Act explained article.

What is a Chargeback and How Does the Chargeback Scheme Work?

Chargeback is a voluntary scheme run by card networks (Visa, Mastercard and American Express) that allows banks to reclaim money from a retailer’s bank when a transaction goes wrong. Unlike Section 75, it is not a legal right, and the card provider chooses whether to raise a dispute.

A chargeback lets you ask your card issuer to reverse a transaction when goods or services are not delivered, are faulty or misdescribed, or the transaction amount is incorrect. Card networks have different rules, but there are common features:

• Applies to credit and debit cards: You can request a credit card chargeback or a debit card chargeback. This makes it valuable for purchases below £100 or where Section 75 does not apply.
• Voluntary scheme: The bank must follow network rules, but is not legally obliged to raise a chargeback claim. Each card scheme (Visa, Mastercard, Amex) sets its own guidelines.
• Evidence required: Banks will ask for proof of payment, invoices, contracts, emails and any communication with the trader. They need to demonstrate to the retailer’s bank that the dispute is valid.
• Valid reasons: Typical reasons include goods not received, items arriving broken or not as described, refunds not processed, repeat payments after cancellation, unauthorised or incorrect amounts and cancelled services.

Because chargebacks are not guaranteed, they are best used when you cannot contact the trader or when the trader refuses to co‑operate. If your bank declines to raise a dispute or the merchant successfully challenges the reversal, you can still pursue other remedies, including Section 75 (if eligible), the Financial Ombudsman Service or a small‑claims action.

Chargeback Time Limits in the UK

You normally have around 120 days to initiate a chargeback from the date you paid or the expected delivery date, although the window can extend up to 540 days for travel and future‑delivery transactions.

Card networks impose strict timelines for filing disputes. According to the Financial Ombudsman Service, customers usually have about 120 days to raise a chargeback claim, starting from the transaction date or the date goods were expected but not supplied. UK Finance advises customers to make a claim as soon as they notice a problem.

For some transactions, the clock starts at different points:

• Physical goods: The timeline begins either when the transaction is processed or when you are meant to receive the goods.
• Services or future delivery: The window may start on the date the service was scheduled to occur. 
• Recurring payments: Each recurring transaction has its own dispute window.

While major card networks use the 120‑day rule as a standard, the exact trigger date and any extensions vary. For example, Visa and Mastercard typically start the clock at the transaction or service date, whereas American Express may begin from when the transaction was processed. If you think you have missed the deadline, check with your bank; some disputes may still be possible if the merchant acted fraudulently or if the bank can argue exceptional circumstances.

Debit Card Chargeback: What Protection Do You Actually Have?

Debit cards are not covered by Section 75. Instead, the only way to get your money back through your bank is via the chargeback scheme, which is voluntary and can be reversed by the merchant.

When you pay with a debit card, your bank has no statutory obligation to reimburse you. If something goes wrong with your purchase, such as non‑delivery, defective goods or unauthorised transactions, you can still ask for a debit card chargeback. However, there are important differences:

• No legal right: Because it is voluntary, your bank may decline to raise a chargeback for debit cards, and even if it does, the merchant can challenge the refund.
• Time limits apply: You must generally raise the dispute within 120 days of the transaction or the expected delivery date. Some networks allow longer for travel or future‑delivery transactions.
• Evidence burden: You need to provide proof that you attempted to resolve the issue with the merchant, such as emails and receipts.
• Refund reversals: Even if the bank grants a refund, the merchant can appeal. The card network may then reverse the refund if the merchant provides counter‑evidence.

Because of these uncertainties, a debit card chargeback should not be your only line of defence. Whenever possible, pay for higher‑value purchases with a credit card to benefit from Section 75 credit card protection. For small purchases or when you cannot use a credit card, keep detailed records and act quickly if you need to make a chargeback claim.

Section 75 vs Chargeback: Which Should You Use?

Use Section 75 when you pay by credit card and the individual item cost is over £100 (and under £30,000). Use chargeback for debit card transactions, credit card transactions under £100 or situations where the debtor‑creditor‑supplier link is broken. You can pursue both avenues simultaneously.

Here is a side‑by‑side comparison of Section 75 and chargeback:

In practice, if you paid partly by credit card and partly by another method, you can claim the entire amount under Section 75 credit card protection. There is nothing to lose by asking your bank to initiate a chargeback credit card dispute at the same time; banks can run both processes concurrently. If one route fails, the other might succeed.

When Section 75 Claims Are Rejected and Why

Even when your purchase seems to qualify, a bank may decline your Section 75 claim. Common reasons include:

1. Purchase under £100: If the individual item costs less than £100, Section 75 doesn’t apply even if the total order is more than £100.
2. Third‑party platform: Buying through a marketplace or paying via an intermediary can break the debtor‑creditor‑supplier link.
3. Debit or charge cards: Payments made using debit cards, charge cards or PayPal are outside the scope of Section 75.
4. General‑purpose loans: Using an overdraft or an unsecured bank loan instead of a regulated credit card means section 75 doesn’t apply.
5. No breach or misrepresentation: The bank must determine there was a breach of contract or misrepresentation; if they deem the goods were of satisfactory quality, your claim may fail.

If your Section 75 protection is denied, ask the bank for a final response letter explaining its decision. This letter triggers your right to refer the complaint to the Financial Ombudsman Service.

When a Chargeback Claim Fails: Your Next Steps

Banks sometimes refuse to raise a chargeback claim or stop the process if the merchant disputes it. Here are practical steps:

1. Seek clarification: Ask your bank why it declined your chargeback. It may have decided that the transaction didn’t meet the network’s criteria or that the time limit had expired.
2. Provide further evidence: Banks will often raise a second dispute if you can supply more evidence, such as emails, photographs or expert reports.
3. Escalate internally: Request a formal complaint within the bank so your case is reviewed by a senior team.
4. Complain to the Financial Ombudsman Service (FOS): If you still disagree with the outcome, take your complaint to the FOS. They assess whether the bank applied the chargeback scheme rules fairly and whether more could have been done. You have six months from receiving the bank’s final response to complain.
5. Consider small‑claims court: If your bank refuses to help and the trader still owes you money, you can sue the trader directly. CaseCraft.AI offers tools to draft pre‑action letters and court forms.

Escalating to the Financial Ombudsman Service

The Financial Ombudsman Service (FOS) is a free, independent body that can order banks to refund you if they wrongly reject your Section 75 claim or mishandle a chargeback complaint.

You should complain to the FOS when:

• Your bank refuses to raise a chargeback or rejects your Section 75 claim, and you are not satisfied with its final response.
• The bank takes longer than eight weeks to resolve your complaint.
• You believe the bank has not followed the card‑scheme rules or consumer law.

To start, submit a complaint on the FOS website or call their helpline. You’ll need the bank’s final response letter, copies of all correspondence and evidence supporting your case. The FOS will weigh the evidence, relevant law and fairness considerations. If the ombudsman upholds your complaint, they can direct the bank to pay the refund, reimburse costs or compensate you for distress. Their decisions are binding on the bank but not on you; you can still take your case to court if you are unhappy with the outcome.

Taking a Faulty Goods or Failed Service Dispute to Small Claims Court

When Section 75 and chargeback fail, you can sue the trader in the small‑claims court (county court), which hears claims for up to £10,000 in England and Wales. You don’t need a solicitor, and costs are limited.

Before issuing proceedings, send a letter summarising what went wrong, what remedy you seek, and giving the trader 14 days to respond. This is a formal requirement under the Civil Procedure Rules pre‑action protocol. The small‑claims process involves filing a claim form online (or by post), paying a court fee based on the claim amount (currently £70 to £455 for claims between £500 and £10,000), and attending a short hearing if the case is defended.

Claims must be filed within six years of the breach. The court can award you the amount claimed, interest, and the court fee. If the defendant does not pay, you may need to take enforcement action such as instructing bailiffs, obtaining an attachment of earnings order or securing a charging order on their property. For a step‑by‑step walkthrough of the court process, including how to draft a claim form, pay the correct fee and present your evidence, read our small claims court how‑to guide.

Preparing a small claim can be daunting. A clear narrative, organised evidence and correctly completed forms increase your chances of success. This is where modern tools like CaseCraft.AI can streamline the process.

How CaseCraft.AI Helps When Section 75 and Chargeback Both Fail

CaseCraft.AI is a UK‑based platform that generates court‑ready small‑claims documents, guides you through each step and charges only a small setup fee plus a success‑based percentage.

When your bank or credit card provider cannot help, CaseCraft.AI offers a straightforward way to pursue a small claim. According to the company’s website, the platform:

• Auto‑generates legal forms: The system instantly creates the correct claim forms and helps you organise evidence.
• Fast filing: Most users complete the process online in under 15 minutes.
• Step‑by‑step AI guidance: The platform guides you through preparing evidence, tracking deadlines and exploring settlement options.
• Success‑based pricing: There are no hidden fees. You pay a modest £15 setup fee and only a 10% success fee if your claim succeeds. This model is cost‑effective compared with traditional solicitors.
• Maximum claim limit: The system is designed for small claims up to £10,000.
• Security and regulation: CaseCraft.AI uses bank‑grade encryption and UK‑based servers. Legal services are delivered by Sterling Lawyers Ltd, authorised by the Solicitors Regulation Authority.

CaseCraft.AI is ideal when you want to avoid complex legal paperwork but still present a professional case. It also offers tools to help defendants respond to claims, settle out of court and manage enforcement. Because the platform is always open and fully online, you can work on your case at your convenience.

Legal disclaimer: This article is for general information only and does not constitute legal advice. Laws, court procedures and card-scheme rules may change, and outcomes depend on the facts of each case. Section 75 claims may apply to qualifying credit card purchases between £100 and £30,000 under the Consumer Credit Act 1974. However, CaseCraft.AI supports UK small claims matters only, which are generally limited to claims of up to £10,000 in England and Wales. CaseCraft.AI is not a substitute for advice from a qualified solicitor. If you need advice specific to your circumstances, seek independent legal guidance.