Section 75...the quiz

Many letters we receive from consumers that have been passed onto us from our members include the words “I have made a claim against my credit card provider under Section 75 of the Consumer Credit Act 1974 as I paid for part of the purchase of the car on my credit card - so that they can refund me”.  Consumers and the card companies often do not understand when this is appropriate. Where it applies a credit card provider is equally as liable for any breach of contract as the seller/car dealer is.

Take this 10 question “true” or “false” test to see how well YOU understand the law.  Send in your answers to us ( you will receive the answers in the next legal update.  Pride rather than prize for the highest scorers!

1.    Section 75 applies provided the consumer pays anything between £100 and £30,00 on their credit card

2.    Section 75 applies provided the minimum value of the item purchased is £100 or over or is priced at no more than £30,000

3.    Section 75 applies even if the consumer has paid off the amount they paid on their credit card.

4.    Section 75 applies even if the consumer has exceeded their card limit by making the purchase.

5.    A consumer can only look to their credit card provider for redress once you, the seller, have declined their request for a refund.

6.    A consumer pays a £200 deposit on a car costing £5000 and pays the rest in cash.  If the car goes wrong the most the card company has to refund them is £200.

7.    Section 75 of the Consumer Credit Act cannot apply if a self-employed person buys a car using their credit card and the vehicle is to be used primarily for commercial purposes.

8.    Section 75 cannot apply if a person uses their credit card to pay for a purchase via Paypal.

9.    Section 75 cannot apply if a deposit is paid on a credit card and the remainder of the purchase is provided via Hire Purchase.

10.    A credit card company can never be liable if a consumer uses their credit card to partly (or fully) fund a purchase costing £34000.

The answers will be given in the next legal updates.

Authors: Jason Williams

Published: 26 Jan 2017


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