First of all, we need to point out that the Consumer Credit Act Section 75 is only valid for Consumers in the United Kingdom who paid with a British Credit Card.
Section 75 is a legal protection put in place to protect the consumer and can be claimed for payments made between £100 and £30.000
How does the Consumer Credit Act work?
You have six years to seek a refund from your Credit Card Company, counting from date in which the financial transaction took place.
However, payments by Debit Card and Bank Transfer transactions are NOT covered by the Section 75 of the Consumer Credit Act 1974. Just in cases in which the initial payment was made by credit card, and the final one by bank transfer, then the bank transfer is also covered by this Credit Act.
The bottom line is that to be able to get a refund from your Credit Card Company, you have to prove that you were misrepresented, and/or that there was a breach of contract, committed by any of the companies which took money from your bank account, according to the Section 75 of the Consumer Credit Act 1974.
Evidences of misrepresentation do NOT need to be backed up by written commitments made by the company who offered you their services or goods, as it is valid even oral claims made by this company on the date of a meeting or telephone conversation.
Mindtimeshare offers clear guidelines and advice on how to make the claim and also what reason to give to the bank based on misrepresentation and / or breach of contract.
What happens if the card was charged by a third party?
You’re unlikely to be covered when payments are made to a company that isn’t the one providing you with the goods or service. In these cases the credit card company usually says it didn’t have a direct relationship with the supplier, so isn’t equally liable.
If you stand your ground it’s possible to argue that the indirect relationship constitutes an arrangement to pay. The Court of Appeal decided this was acceptable in 2006, but it’s unlikely to be an easy task.
Daily Mirror: “A possible pitfall is the need to prove a “debtor-creditor-supplier” relationship – ie the person you pay needs to also be the one that provides (or is supposed to provide) the goods or service.” http://blogs.mirror.co.uk/investigations/2011/02/can-i-claim-back-money-from-il.html
It is important you can proof the connection between the two companies, and in a lot of cases Mindtimeshare will be able to help you with this.
As mentioned, payments by Debit Card and Bank Transfer transactions are NOT covered by the Section 75 of the Consumer Credit Act. But we have to highlight though that payments with Debit Card can be refunded and in most cases you have 120 days to request this at your bank, counting from the day the financial transaction was made.
We would like to point out as well that although the above protection law is in place, obviously the banks are not “jumping up and down” to make a refund. So always be careful with companies that are keen to tell you that you will be able to claim a refund “if something goes wrong” when in reality they are acting against the law by requesting you an upfront payment for example with a timeshare resale!
There are several very useful links and one of the most complete is the following:
If you have any questions or doubts about your possibilities to claim under the Consumer Credit Act Section 75, please let us know. You can email us at firstname.lastname@example.org