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The Consumer Credit Act 1974 – Section 75 – applies when a consumer buyer uses a credit card, not a debit card.

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We at Lawgistics like to help. We certainly like to assist our members, but from time to time, we like to assist non-members too. Like here, where we were happy to pass on our knowledge and wisdom to those at Nottinghamshire County Council Trading Standards who don’t understand the difference between a “chargeback” for debit card payments, and a “Section 75 claim” under the Consumer Credit Act.

For Nottinghamshire Trading Standards have written to one of our members alleging offences under consumer protection legislation. 

They referred to how one of their taxpayers “made a Section 75 claim” and proceeded to display as “evidence” letters – from Lloyds Bank – Debit Card Disputes team.

In essence, when one pays by debit card there is a voluntary “chargeback” scheme –  for when things go wrong –  that comes with limitations in terms of timescale and is limited only to the amount paid for using the card. It is a non-statutory form of protection when one uses a debit card only.

The Consumer Credit Act 1974 – Section 75 – applies when a consumer buyer uses a credit card, not a debit card. It renders the card provider legally as liable as the seller is. The limit is the value of most purchases and not the amount paid for on the card.

For example, a car is worth £10,000. An amount of £1000 is paid on a debit card – the most recoverable on the “chargeback” is £1000.

But, if the customer paid £1000 on a credit card, the potential joint liability of the card company can be the full £10,000 of the car’s price.

However, the two are separate. And for Nottinghamshire Trading Standards to refer to a “Section 75 claim” on a debit card is like putting petrol in a diesel car – it won’t run.

We encourage Nottinghamshire Trading Standards, and all other trading standards departments,  to take advantage of our training packages which include a session on consumer law. We will train all to a high standard and for a good price too!

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Jason WilliamsLegal AdvisorRead More by this author

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