2nd April 2015
Thousands of shoppers could be losing out on refunds for faulty goods they have purchased using their credit cards as a result of being unaware they are protected, claims research from Ocean Finance.
The mortgage and loans provider’s analysis found that almost one in five, or 18%, of credit card users are not aware that purchases they make over £100 on anything from a flight to electronic goods, a sofa or even a car, are protected up to £30,000.
But Section 75 of the Consumer Credit Act 1974 protects shoppers because it makes card providers and retailers equally responsible if anything goes wrong with their goods.
Consumers can make a claim to their credit card provider and the retailer at the same time, which is particularly useful if a retailer has gone bust. Spenders are even covered for goods that they have only paid a deposit on, or paid for part of, on their credit cards, as long as it’s more than £100.
Of those who say they have tried to make a claim through Section 75, more than three-quarters, at 77%, got their money back.
Ian Williams, a spokesman for Ocean, said: “Many consumers still don’t know about the protection they get when buying products or services on their credit cards, meaning that they risk missing out on refunds when things go wrong.
“Our research shows that the majority of people who make a claim using Section 75 successfully get their money back, so it’s invaluable consumer protection. Even when consumers have enough money to buy things using their debit card, it is worth paying on their credit card and then clearing the balance in full so they have the added protection.”