Section 75 and chargeback: how to get your money back in the UK

A shop refuses to refund a faulty item, a contractor takes a deposit and vanishes, a course is cancelled with no money back. If you paid by credit card, you have a second defendant: the bank that issued it, liable alongside the trader by statute.

What is Section 75 and why is the bank liable for the shop?

It is section 75 of the Consumer Credit Act 1974. The wording is blunt: where the buyer has a claim against the supplier for misrepresentation or breach of contract, they have "a like claim" against the creditor, and supplier and creditor are jointly and severally liable. You can pursue the whole sum from the bank without chasing the trader.

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It only bites when credit financed the purchase: a credit card, or a loan arranged at the point of sale. A debit card is outside Section 75. The Act adds that the section applies even if you exceeded your credit limit or otherwise broke the terms of your agreement. The bank, having paid you, is entitled to recover from the supplier — that is the bank's problem, not yours.

Which purchases are covered: £100 and £30,000

The threshold sits in the section itself: Section 75 does not apply where the cash price of a single item does not exceed £100, or exceeds £30,000. So protection runs to purchases above £100 and up to £30,000.

The detail banks explain reluctantly: you do not have to put the whole price on the card. The Financial Ombudsman Service tells firms plainly that a consumer need not pay the full cash price on credit for the claim to be valid. Put a £150 deposit on a £6,000 kitchen on a credit card and Section 75 covers the full £6,000.

How is chargeback different from Section 75?

Chargeback is not law. It is the card schemes' own rules, under which your bank disputes the transaction through the scheme. Three differences matter.

First, chargeback is available on debit cards; Section 75 is not. Second, chargeback only recovers what actually left the card, while Section 75 can cover consequential losses too. Third, the schemes set their own filing deadlines and they are strict — ask your bank for the exact deadline on your transaction and do not sit on it.

The ombudsman tells banks not to treat the two as alternatives: if the customer claims more than they put on the card, look at both at once. One more warning from the same guidance: money credited during a chargeback may be temporary and can be taken back if the trader's bank defends the dispute.

What if the trader has disappeared or gone bust?

For expensive purchases there is section 75A. It applies where the cash value of the goods is above £30,000 and the credit itself does not exceed £60,260, and where one of four conditions is met: the supplier cannot be traced, the supplier has been contacted but has not responded, the supplier is insolvent, or you took reasonable steps to pursue the claim without satisfaction. The Act says those steps need not include litigation. But if you have accepted a replacement or other compensation, the claim counts as satisfied.

How long does the bank get?

The response clock is fixed: 15 days for complaints about fraud and scams, payment services and electronic money, and 8 weeks for most others, including disputes over goods and services. Within that time the bank must send a final response. If it does not, you can go to the ombudsman without waiting.

There is a deadline on complaining at all: you must complain to the business within 6 years of the problem, or 3 years from when you became aware, or reasonably should have become aware, that you had cause to complain.

Where to go if the bank says no

To the Financial Ombudsman Service, and this is the shortest deadline of all: 6 months from the date of the final response. The ombudsman counts calendar months: a final response dated 7 May gives you until 7 November. Miss it and only exceptional circumstances help — serious illness or a bereavement — or the firm consenting to a late referral.

How much can the ombudsman award?

The limit depends on when the complaint was referred and when the firm's act or omission happened. For complaints referred on or after 1 April 2026, the limit is £455,000 where the act or omission was on or after 1 April 2019, and £205,000 where it was earlier. Above the limit the ombudsman can only recommend a payment, and the firm is not obliged to make it.

Where to get free advice

GOV.UK points consumers to helplines that can also refer the case to Trading Standards. In England and Wales that is Citizens Advice on 0808 223 1133, Welsh language 0808 223 1144, Monday to Friday 9am to 5pm. In Scotland, Advice Direct Scotland on 0808 164 6000, same hours. In Northern Ireland, Consumerline on 0300 123 6262, Monday to Thursday 9am to 5pm and Friday 9am to 4pm.

The practical lesson is short: put large purchases and deposits on a credit card, even if only part of the price goes on it. That part turns the bank into a co-defendant — and it is usually what gets the money back once the trader has stopped answering emails.