Credit card refunds and section 75 Consumer Credit Act 1974

Posted by Amy Flower in Personal Finance on 6 January 2016 - Amy is a Senior Credit Analyst at checkmyfile

Many of us would have purchased our Christmas presents for our nearest and dearest using our credit cards. Any transactions over £100 are protected under section 75 Consumer Credit Act 1974 (CCA) if the goods received are not as described or faulty, for example, giving consumers a little protection. There is a peace of mind using a credit card knowing that there is protection for the consumer and a refund can be issued by your credit card provider if necessary.

What is not so well known is the loophole that allows your card provider to reverse their decision to refund a payment back to your card. “How?!” I hear you ask.

The law under section 75 CCA means your credit card provider is jointly and severally liable for any breach of contract or misrepresentation by the company. This makes your card provider as responsible as the retailer or trader for the goods or services purchased. Thousands of transactions that are refunded by credit card providers are not claimed back against the retailer, typically because it may be considered to be more work than necessary.

When a refund decision made by a card provider is reversed this is because the original retailer or supplier has defended the action with the card provider. This can result in the customer being given a refund by their credit card provider, who then reverses the transaction and makes the debit on the card again.

There are no time limits set out by law in which your card provider has to investigate and resolve your claim, which can see some claims lasting months and possibly years, depending on the complexity of the dispute. Whilst there is no law to govern credit card providers, they do have to adhere to their trading license registered with the Financial Conduct Authority (FCA), who will ensure that they are meeting their license requirements.

If you are unfortunate enough to be having a dispute with your credit card provider about the time taken to resolve your dispute for a transaction you may be able to apply a little pressure on them by making a complaint to them. They will then have 8 weeks to reply to your complaint in writing, failure to do so may lead you to raise your complaint with the Financial Ombudsman Service.

Check Your Credit Report for Errors

30 Day Free Trial

The Cost of Incorrect Information on Your Credit Report

Your credit file is compiled from a number of different sources, including payment history from each of your lenders (past and present) and public data as reported by local authorities and courts. The majority of people find that everything held about them is correct, but due to the large amount of information being shared, errors in the information reported can happen, which can lead to issues when you go to apply for credit.

Published on 2 Feb 2018 by Tom Blandford

Full Article

Your Guide to Open Banking

On 13 January, the UK banks embarked upon arguably one of the biggest changes to personal finances since the introduction of computers. Open Banking is aiming to make it easier for banks, lenders and consumers to access and share information, with a view to creating new products and opportunities through innovation and increased competition.

Published on 15 Jan 2018 by Jamie Mackenzie Smith

Full Article

HMRC Bans Credit Card Tax Payments

From 13 January 2018, it will no longer be possible for consumers to use a personal credit card to make a payment on HMRC’s Self-Assessment tax portal. Historically, this has been a popular option as it allows what is often a considerable sum to be deferred.

Published on 12 Jan 2018 by Tom Magor

Full Article

How to Get the Best Deal When Buying a New or Used Car

Buying a new car is both exciting and expensive, but if you know where to look and when, you can grab yourself a bargain. If you take a little time to look into finance or loan deals as well, you can bring down the overall costs significantly.

Published on 11 Jan 2018 by Kevin Pearce

Full Article

Are football clubs exploiting their fans

With Premier League teams under huge pressure to remain in the top flight of English football, the amount lavished on transfer fees and player wages have soared in recent years.

Published on 8 Jan 2018 by Sam Twyford

Full Article

What The 2017 Autumn Budget Means For First-Time Buyers

Wednesday’s autumn budget brought great news to would be first-time homeowners: if you’re buying a home up to the value of £300,000, you won’t have to pay stamp duty for the property. This, the Conservative Party estimate, will benefit 80% of first-time buyers, saving them potentially thousands of pounds on the total cost.

Published on 28 Nov 2017 by Jamie Mackenzie Smith

Full Article

Blacklists - Ten things you probably didn't know

1. Blacklists are not unlawful. No lender is compelled by law to give credit or to give any reason when declining credit. Each may consult several sources of information before making a decision, including any form of list that may exist. Any list containing personal data is automatically regulated by the Data Protection Act 1998.

Published on 9 Oct 2017 by Barry Stamp

Full Article

Is a credit building card a good idea

A credit building credit card is most often used by people that are either looking to improve their credit rating or take out their first credit card.

Published on 24 Mar 2017 by Kelly Luff

Full Article

Which Credit Report Information Can Landlords See

Whenever you rent a property, you will be required to pass some checks set by the landlord or letting agent to prove that you will be a good tenant and that you’ll be able to afford to rent the property.

Published on 7 Mar 2017 by Kevin Pearce

Full Article

Impacts of late payment on your credit card agreement

We’ve all done it before – had that mad panic when we’ve forgotten to pay a bill. But what happens if you do forget to pay your credit card by the monthly repayment date?

Published on 20 Feb 2017 by Kelly Luff

Full Article
keyboard_arrow_left

keyboard_arrow_right

We have loads of great customer reviews