Safety net faces the axe

FIVE-MINUTE GUIDE TO... SECTION 75 PROTECTION

- Harvey Jones

CREDIT card purchases have enjoyed an extra layer of protection for almost 50 years under Section 75 of the Consumer Credit Act 1974.

Now the Government is looking to axe the Act altogether, and lenders would like to see consumer protections watered down, so how worried should we be?

Many shoppers have never heard of Section 75, but those who know its value deliberately use their credit card when making higher risk purchases, such as a holiday or goods from online retailers.

If something goes wrong, such as that a product does not arrive, is damaged or a supplier goes bust, consumers can raise a claim with card issuers.

To qualify, you must have paid some or all of the cost with your credit card, and the cash price must be more than £100 but less than £30,000. Protection may even apply where someone paid less than £100, but the total price was higher.

Section 75 does not apply to debit or charge card purchases, or funds from an overdraft or personal loan.