Section 75 - Consumer Credit Act 1974

  • Paying for goods or services by credit card is now a major part of daily life.

  • Section 75 of the Consumer Credit Act 1974 brings about an equal liability against the card issuer for any breach of contract or misrepresentation.

  • The cash price of the goods or services must have cost more than 100.00 but not more than 30,000.

  • It applies if the credit has been provided under a 'pre-existing arrangement that involves both the supplier and the credit provider. Credit cards are covered because suppliers are signed up by one firm (acquirer) to accept cards belonging to the relevant network such as Mastercard or Visa.

  • The claim is not limited to the amount of the credit card transaction. Customers can claim for all losses caused by the breach of contract or the misrepresentation. This applies even if all they paid by credit card was the deposit.

  • Example
    Customer pays a deposit for goods using a credit card issued by firm A - then pays the balance using firm B's card, has the choice of claiming for the cost of goods and any consequential losses against:

    • the supplier;
    • firm A;
    • firm B; or
    • all three

    for any breach of contract or misrepresentation.