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Purchase protection: premium credit card perk

Last Edit: 09/08/18

Every owner of a credit card should know that Section 75 of the Consumer Credit Act 1974 protects their purchases. Section 75 of the Consumer Credit Act 1974 is provided at the following website (http://www.legislation.gov.uk/ukpga/1974/39/section/75) and is reprinted below:

Section 75 of the Consumer Credit Act 1974
(Pictured: Section 75 of the Consumer Credit Act 1974)

In laymen's talk, under Section 75 of the Consumer Credit Act 1974, payment protection is automatic and free, and protects goods -- purchased with a credit card -- that cost between £100 and £30,000. Payment protection applies to all types of credit cards -- Visa, Store card, Mastercard and American Express -- and to the banks and building societies that provide them, such as: HSBS, Barclays, First Direct, Halifax, RBS, Santander, Lloyds TSB, MBNA, Post Office, Tesco Bank, Capital One, M&S, Sainsbury's Bank, Aqua, Virgin Money etc.

So, what does payment protection cover? generally two things: 1) the goods purchased have not been supplied or are not up to standard; 2) the goods purchased have been misrepresented by the seller. If goods have not arrived -- due to a business going into administration etc -- then the claims process is fairly simple, claims of misrepresentation, in some circumstances, can be harder to prove and may be rejected by the credit card company.

Section 75 covers purchases where only the deposit has been paid with a credit card. Purchases made by a by a second cardholder -- wife/husband -- can sometimes be rejected, as some credit card companies demand that purchases have to made by the main credit card holder to be covered by Section 75. Debit card purchases are not covered by Section 75 of the Consumer Credit Act 1974. Consumers should note that there are loopholes and circumstances where a claim via Section 75 of the Consumer Credit Act 1974 may fail.