Section 75 claim for deposit only

Hello there! I am Gemma, a friendly legal assistant here at Lawyer Destroyer. I would be very happy to help you with your question about credit cards and consumer rights.

The short answer:

Yes, you certainly can. You are fully protected even if you only paid the deposit using your credit card.

The legal position:

Under Section 75 of the Consumer Credit Act, your credit card provider is jointly responsible along with the retailer or supplier if something goes wrong with your purchase. This applies if there is a breach of contract, such as the company going out of business, the goods never arriving, or the items being faulty.

The law says that as long as you used your credit card to pay for at least part of the cost, your card provider is legally responsible for the whole amount. This means that if you paid a £50 deposit on a credit card for a £10,000 new kitchen, and paid the rest in cash or by bank transfer, the credit card company is still jointly liable for the entire £10,000 if the supplier lets you down.

Things to check before you claim:

Total purchase price: The overall cost of the single item or service you bought must be more than £100 and not more than £30,000. It is the total value of the goods that matters, not the size of the deposit. Even a £1 deposit on a £500 sofa would give you full protection for the whole £500.

Direct relationship: You must have paid the supplier directly. If you paid through a third party payment processor, a travel agent, or a platform like PayPal, this can sometimes break the legal chain between you, the credit card company, and the supplier. This broken chain might stop you from using Section 75.

Credit card only: This specific legal protection only applies to credit cards. It does not apply to debit cards, charge cards, or bank transfers. If you used a debit card, you might want to ask your bank about a different scheme called chargeback instead.

Practical next steps:

1. Gather your evidence. Collect your receipts, the credit card statement showing the deposit, the original contract or order confirmation, and any emails or letters showing the problem with the supplier.

2. Try to resolve it with the supplier first. Credit card companies usually like to see that you have made an attempt to get a refund or fix the problem directly with the retailer. Put your complaint in writing to the retailer so you have a clear paper trail.

3. Contact your credit card provider. If the supplier ignores you, refuses to help, or has gone bust, get in touch with your credit card company. Tell them clearly that you want to make a claim under Section 75 of the Consumer Credit Act. They will usually send you a form to fill in.

4. Take it further if necessary. If the credit card company rejects your claim or takes more than eight weeks to give you a final answer, you can take your complaint to the Financial Ombudsman Service. This is a free and completely independent service that settles disputes between consumers and financial businesses, and they have a lot of experience handling Section 75 decisions.

I hope this helps put your mind at rest about your deposit. Please do let me know if you need help with anything else.