Thursday,14.08.14 (182 views)

Section 75 of the Consumer Credit Act- a favorable protection for the consumers

Credit and debit cards are a daily part and parcel of our lives. In the global consumer market most of the transactions are done by the use of these plastic cards. Most of the consumers around the world rely on their cards for the transaction or for purchase because they are convenient and fast and somewhat safe. Section 75 is a special act which monitors all the transactions that occurs under credit card. It protects the customers if any fraudulent activity happens in the credit card and the customer loses money because of that. The Section 75 of the Consumer Credit Act helps the consumer to get back the money that is lost because of a fraudulent activity. This law is the most well made tool which protects the consumers and their cards. Under this act you are being a consumer can claim the money that you have lost because of a fraudster.

Know your rights under Section 75

This act empowers a consumer to earn his or her compensation. Under this Act you can ask for compensation simultaneously from the retailer or the service provider and you can slap the bill of your compensation on the credit card company. The Act gives you the right to ask for compensation from the credit card company if the card company has misguided you during a transaction. Simultaneously, you can fetch compensation from the service provider or the seller if they have neglected your complaint calls and if they completely given a blind eye your multiple complaint letters. The Section 75 of the consumer Credit Card covers all modes of transactions which are done with the help of credit or debit card. They cover online transactions and telephonic transactions or order via emails.

How to earn your compensation-

There is a limitation under the Section 75 of the Consumer Credit Card Act. It ties the consumers with preconditions. Before lodging the complaint, you must remember that, your claim should not cross the amount of 30,000 pounds and should not be below 100 pounds. As a consumer you have the complete right to get back your money, even if you have paid the part amount through your credit card. The act entitles you to get the entire amount of money, which the seller tagged on the good which he or she wants to sell. Under this act the price tag on the product is more important than the money which you have shelled out from your credit card. For example, if you want to buy a bike which will cost you around 20,000 pounds and you have made a part payment by your credit card which is, 10,000 pounds and you made the remaining payment via cheque. If after this the bike dealer fails to deliver, then the credit card company is bound to compensate you with the entire cost of the bike, which is 20,000 pounds.

This act makes the credit card company equally responsible to the seller if any breach of contract happens or the if the consumer faces any problem with the credit card. You can also claim your compensation from the credit card company if you have purchased a service by using your card and the service provider is unable to provide you the same. But remember that, if anyhow, if the product cost is less than 100 pounds then, you are not entitled to get your money back. But you can file a claim under such a scenario with the chargeback.

Only Credit Cards-

Remember that this act covers only credit card transactions and not a debit card or transactions under charge cards.

Remember the exceptions-

There are certain exceptions under section 75 of the Consumer Credit Card Act. The exceptions are as follows.

You cannot ask for compensation if you have withdrawn cash from your credit card and purchased a good or a service. As the cash payment doesn’t establish a relation in between the credit card company and the retailer.

 It’s an Amazon marketplace purchase or if there is an active involvement of third party agent. Suppose if you have purchased a flight ticket from an agent and not from a flight service company then you are not entitled to get the compensation.

 Pay Pal preferred-

 You are empowered to get compensated if you have made the transaction with your credit card and via PayPal. If the payment to purchase a good or a service is made with the help of Pay Pal then you are entitled to claim back your money which you have lost, as in most of the cases the retailer is bound under the pact of the Commercial Entity Agreement which they have signed with the Pay Pal company. Pay Pal covers all the transactions which occur under its umbrella with its in house Pay Pal Buyers Protection Scheme. So if there is any problem with the purchase or with the service which you have purchased with the help of Pay Pal, then be sure to get compensated.       

Be the Primary holder-

Be sure about your compensation if anything awkward happens to the purchase that you have made, via credit card under this Section 75. But the law prefers to pay back the primary card holder. So if you are the secondary card holder then it is suggested, that you should make hefty purchases with the help of the primary card.

Third Party issue-

If you have made a payment through your credit card to an agent for purchasing a flight ticket or insurance through an insurance agent and you are satisfied with the service or the good, then you can lodge a complaint and can ask for compensation from the credit card company under section 75. But it is always preferred if you make the payment directly to the service providing company.

Talk to the FOS-

If your credit card company rejects your compensation plea, then ask them for a letter of deadlock. It will help you to lodge your complaint to the FOS (Financial Ombudsman Service). If your complaint letter doesn’t receive any reply for the last eight weeks then you can directly lodge a complaint to the FOS without a letter of deadlock.


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