Accepting credit cards for payment and Section 75 refunds


Consumers can seek a refund from their credit card provider.

Author: Nona Bowkis
Reading time: 2 minutes

This article is 8 years old.

Read our disclaimer keyboard_arrow_down

This website content is intended as a general guide to law as it applies to the motor trade. Lawgistics has taken every effort to ensure that the contents are as accurate and up to date as at the date of first publication.

The laws and opinions expressed within this website may be varied as the law develops. As such we cannot accept liability for or the consequence of, any change of law, or official guidelines since publication or any misuse of the information provided.

The opinions in this website are based upon the experience of the authors and it must be recognised that only the courts and recognised tribunals can interpret the law with authority.

Examples given within the website are based on the experience of the authors and centre upon issues that commonly give rise to disputes. Each situation in practice will be different and may comprise several points commented upon.

If you have any doubt about the correct legal position you should seek further legal advice from Lawgistics or a suitably qualified solicitor. We cannot accept liability for your failure to take professional advice where it should reasonably be sought by a prudent person.

All characters are fictitious and should not be taken as referring to any person living or dead.

Use of this website shall be considered acceptance of the terms of the disclaimer presented above.

A recent survey by the consumer organisation Which? shows that a quarter of people are unaware of the protection offered to them by Section 75 of the Consumer Credit Act. As explained in a previous update, consumers can seek a refund from their credit card provider for a car worth between £100 and £30,000 as long as they make some part of the payment on a credit card. Claims need to relate to breach of contract or misrepresentation.

Only last month, we wrote about the overly hasty payouts by finance and credit card providers and so it is no surprise to us that an investigation conducted by Which? found that many credit card providers are failing to fully explain the rules of Section 75. In fact Which? state that out of 10 credit card providers, not one provider consistently gave good advice, and several gave poor advice. Pretty shocking, especially since our clients can find themselves on the sour end of such poor understanding by providers.

The results of the investigation will go some way to explain some of the crazy decisions we have seen of late against our clients. In one ongoing case, the credit card company refunded a customer for a car paid for on someone else’s credit card and not only that, when our client picked up the car it had been damaged. In another case, the credit card provider is asking our client to indemnify them in the event they pay out over £6000 to a disgruntled customer despite the fact that our client did nothing wrong and not a single shred of evidence has been provided by their customer who appears to be still happily driving around in his allegedly refund worthy car!

We are of course assisting our clients challenge such nonsense decisions and are more than happy to advise on any other such disputes.

Nona Bowkis

Legal Advisor

Read more by this author

Getting in touch

You can contact us via the form or you can call us on 01480 455500.