What is Section 75 of the Consumer Credit Act?
Section 75 of the Consumer Credit Act of 1974 contains provisions to ensure that the provider of funds for a credit transaction is jointly liable if the goods or services provided by the supplier are defective. Therefore, consumers paying with UK issued credit cards benefit from Section 75 of the Consumer Credit Act when they make a purchase between £100 and £30,000.
The Act states: “If the debtor under a debtor-creditor-supplier agreement…has, in relation to a transaction financed by the agreement, any claim against the supplier in respect of a misrepresentation or breach of contact, he shall have a like claim against the creditor, who with the supplier, shall accordingly be jointly and severally liable to the debtor.”
Under Section 75, credit card companies are jointly responsible, along with the supplier of the goods or services, for any breach of contract or misrepresentation by the supplier.
For further information about how Section 75 of the Consumer Credit Act affects your business contact your acquiring bank.
