How Section 75 protects your credit card spending

What is Section 75?

Compared to cash or a debit card, spending with a credit card gives you additional protection if something goes wrong. This is because most credit card purchases are covered by something called Section 75 of the Consumer Credit Act 1974.

How does Section 75 protect me?

Under Section 75, Bank of Scotland is jointly responsible with the retailer or supplier and may be able to provide you with a refund if an item or service you’ve bought is:

  • Faulty, broken or sub-standard
  • Not delivered on time or to sufficient quality

Section 75 also covers you if:

  • The company you’ve bought from goes into administration before you’ve received your item
  • The information about the product or service is misleading

When can I claim under Section 75?

There are a few things to remember about Section 75 protection.

1. The item or service you make a claim on must be more than £100 and up to £30,000
For example, a £125 gadget is covered. But two gadgets, where one was worth £50 and the was worth £75 would not be covered. Even if they were bought in the same transaction with the same retailer.

2. Your spending abroad is protected 
You can claim if you were using your credit card on holiday or buying from abroad. The more than £100 and up to £30,000 value rule above still applies.

3. Part payment is covered
Even if the part payment is £100 or less, you can make a claim as long as the total value of the item or service is more than £100 and up to £30,000.

4. You must have made the purchase in the last six years
You may still be able to claim if the purchase was made more than six years ago if, for example, the item was guaranteed for longer.

What’s not covered by Section 75?

Section 75 cannot provide compensation if:

  • You change your mind about a purchase
  • Goods or services were bought with a money transfer or cash withdrawn from your credit card
  • Buying non-sterling currency, gambling transactions and other Cash equivalents, including sending money order or wire transfers (other than balance transfers or money transfers), buying coins, banknotes or digital currency, paying government fines, enforcement, penalties, fees or costs, online trading such as share dealing or investments, purchasing or topping up electronic money, payment cards, mobile wallets or account dashboard services.

Are purchases made through PayPal or other third parties covered by Section 75?

Section 75 protection won’t apply if you use your credit card to fund an account with a third party provider, like PayPal, and then pay for goods or services with that account. This may also be the case if you purchase via a market place website.

I want to make a Section 75 claim

For more information about Section 75 or if you want to make a claim, visit our credit card payment disputes page.