Section 75 claim for holiday or flight

Section 75 of the Consumer Credit Act 1974 and holidays or flights:

Yes, you can claim under Section 75 for a holiday or flight purchased on a credit card, provided the core conditions are met. This is one of the most powerful consumer protections available and it works well in the travel context, but there are some important nuances to be aware of.

The basic conditions:

1. The purchase must have been made using a credit card, not a debit card, charge card, or Buy Now Pay Later product.

2. The cash price of the item or service must be more than £100 and not more than £30,000.

3. There must be a breach of contract or misrepresentation by the supplier.

Common examples in the travel context include the holiday company or airline going bust, the flight or holiday being cancelled and no refund provided, the holiday being significantly not as described, or services promised but not delivered.

How the £100 threshold works:

This is where it gets particularly important for travel purchases. The £100 threshold applies to the individual item or service, not to the amount you put on the credit card. So if a flight costs £150 and you paid just £10 on your credit card and the rest by other means, you are still covered for the full amount under Section 75 because the item itself was over £100.

However, if you book a package holiday costing £2,000 for four people, and the cost per person comes to £500 each, the individual item is arguably each person's place on the holiday. This usually still clears the threshold comfortably.

Where it gets tricky is with low-cost flights. If you buy a return flight for £80, that single item is below the £100 threshold and Section 75 would not apply. Whether a return flight counts as one transaction or two separate legs is a point that can sometimes be argued, but the safer view is that if the total single booking is under £100, you may fall outside the protection.

The debtor-creditor-supplier arrangement:

Section 75 requires a direct relationship between the credit card company, you, and the supplier. This can become complicated with travel bookings in two main ways.

First, if you book through a travel agent rather than directly with the airline or hotel, there is a question about whether the travel agent is the supplier or merely an intermediary. If the agent is acting as an agent for the airline or tour operator, the direct link between you and the actual provider may be broken, and the credit card company may argue Section 75 does not apply. In practice, many card issuers do still honour claims in this situation, but they are not always obliged to.

Second, if you book through an online travel agent or platform such as an OTA, the same issue arises. The card company may say your contract was with the platform, not the airline or hotel, and if the platform is based overseas, this adds another layer of complexity.

The strongest position is always where you book directly with the airline or holiday provider and pay on your credit card.

Package holidays:

If you book a package holiday from a tour operator, you have additional protections under the Package Travel and Linked Travel Arrangements Regulations 2018. These give you rights to refunds and repatriation if the operator fails. Section 75 then provides a backstop, because if the tour operator cannot or will not pay, you can pursue the credit card company instead, as it is jointly and severally liable with the supplier.

Practical steps for making a Section 75 claim:

1. Gather your booking confirmation, receipts, credit card statements, and any correspondence showing the breach of contract or misrepresentation.

2. Write to your credit card provider setting out the claim clearly. State that you are making a claim under Section 75 of the Consumer Credit Act 1974. Describe what was purchased, the price, when it was paid, and what went wrong.

3. Give the card issuer a reasonable time to respond, typically up to eight weeks.

4. If the card issuer rejects the claim or does not respond satisfactorily, you can escalate to the Financial Ombudsman Service, which can make binding decisions up to £430,000.

There is no strict time limit for bringing a Section 75 claim in the same way as there is for a court claim, but the underlying breach of contract claim is subject to the usual six-year limitation period under the Limitation Act 1980, running from the date of the breach.

One important point:

Section 75 makes the credit card company jointly and severally liable. This means you do not have to pursue the airline or holiday company first. You can go straight to the card issuer. This is especially valuable where the supplier has gone insolvent.

Chargeback as an alternative:

If Section 75 does not apply, for example because the item was under £100 or you used a debit card, you may still be able to request a chargeback through your card provider. Chargeback is not a statutory right but a voluntary scheme operated by the card networks such as Visa and Mastercard. It has shorter time limits, typically 120 days from the date of the transaction or the expected date of service, and the outcome is not guaranteed in the same way.

If you can tell me more about your specific situation, such as what you booked, how much it cost, who you booked with, and what has gone wrong, I can give you a more tailored view of your position.