UK credit cards carry one of the most powerful consumer protections anywhere: Section 75 of the Consumer Credit Act 1974 makes the card issuer jointly and severally liable with the merchant for breach of contract or misrepresentation on purchases between £100 and £30,000. But many cardholders don't realise when Section 75 applies, when it doesn't, and how their specific card agreement handles the claim. Before you rely on Section 75, check how your agreement presents it — and what the gaps are.
What is a Section 75 Protection?
Section 75 of the Consumer Credit Act 1974 creates joint and several liability between the creditor (card issuer) and the supplier (merchant) for breach of contract or misrepresentation on purchases paid by credit card (not debit). It applies to single-item purchases with a cash price of more than £100 and not more than £30,000. The creditor's liability is 'like claim' — the cardholder has the same rights against the card issuer as against the merchant. It does not apply to: purchases under £100 or over £30,000; purchases made with a debit card (chargeback applies instead under scheme rules); purchases through a third-party intermediary (e.g. PayPal in some scenarios — Office of Fair Trading v Lloyds TSB Bank plc [2007] UKHL 48 established a narrow but real scope).
Red flags to watch for
Section 75 is joint and several — the cardholder can pursue the card issuer first or in parallel. Agreements suggesting merchant-first resolution add a hurdle that the law doesn't require.
Chargeback is a scheme rule (Visa/Mastercard/Amex), not a statutory right. It's useful below £100 or for debit, but doesn't replace Section 75 above £100 on a credit card.
The price of the item must be more than £100 and up to £30,000 for Section 75 to apply. Agreements should explain this so cardholders know when to claim.
Provided any part of the purchase was paid on the credit card (even £1), Section 75 applies to the full transaction (Office of Fair Trading v Lloyds TSB Bank plc [2007] UKHL 48).
Section 75 requires a 'debtor-creditor-supplier' agreement. Purchases through pure intermediaries (where the intermediary is the supplier, not the end merchant) may fall under Section 75A (joint liability for linked transactions) — agreements should explain the distinction.
The Limitation Act 1980 s 5 gives 6 years from the cause of action (12 in Scotland for relevant claims). Agreements imposing shorter internal deadlines for Section 75 claims cannot extinguish the statutory right.
FCA CONC 6.7 (persistent debt) and CONC 5D (credit card forbearance) require fair treatment during disputes. Aggressive collections during a Section 75 investigation is a red flag.
Section 173(1) of the Consumer Credit Act voids any term purporting to exclude or restrict the protections in the Act. Such clauses are unenforceable.
Your legal rights
UK credit cardholders are protected by: the Consumer Credit Act 1974, particularly Section 75 (joint and several liability) and Section 75A (for linked credit transactions over £30,000 and up to £60,260); Section 173 (prohibition on contracting out); the Consumer Credit (Agreements) Regulations 2010; the FCA Consumer Credit sourcebook (CONC), including CONC 6.7 on persistent debt and CONC 5D on repayments; the Financial Ombudsman Service for disputes (free and binding on the firm); the Limitation Act 1980 s 5 (6-year limitation); the Consumer Rights Act 2015 for fairness of terms; chargeback scheme rules under Visa/Mastercard/Amex (parallel, non-statutory); the Payment Services Regulations 2017 for unauthorized transactions; and the FCA Principles for Businesses (Principle 6: customers' interests). Enforcement involves the FCA, the Financial Ombudsman Service (up to £430,000 in 2026), and County Court (small claims up to £10,000). Scotland uses Sheriff Court summary cause.
Questions to ask before you sign
- 1Does this agreement clearly explain Section 75 joint and several liability?
- 2What is the card issuer's process for Section 75 claims — and does it add hurdles beyond the statute?
- 3How do Section 75 and chargeback interact, and which applies to my situation?
- 4Is there an internal time limit for Section 75 claims that could conflict with the Limitation Act 1980?
- 5How are persistent-debt and collections handled while a Section 75 claim is pending?
- 6Are there any clauses purporting to exclude or limit Section 75?
- 7How does the issuer treat installment or partial payments — does any amount paid on card trigger full Section 75 coverage?
- 8Is the Financial Ombudsman Service reference expressly preserved?
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Contract law varies by jurisdiction and individual circumstances. Always consult a qualified legal professional before making decisions based on this information.