Your Rights When Using Your Credit Card Online

The implementation of the 1975 Consumer Credit Act has provided credit card holders with a substantial amount of protection when it comes to online shopping. It is important to understand your rights and the Act itself, in particular Section 75, so that you can enforce this Act in the event that you become a victim of a scam or a breach of contract.

What does Section 75 of the Consumer Credit Act State?

Section 75 of the Consumer Credit Act states that, in the event goods or services are purchased with a credit card, the credit card company is just as responsible as the retailer to ensure that the goods are delivered to the customer in good order and that no breach of contract or misrepresentation has taken place.

Online shopping might be a very exciting experience but you never really know who you are purchasing from and whether or not they are going to deliver on their promises. This is where Section 75 can assist you. If a breach of contract occurs, you can claim the amount you have spent on the goods or services from the credit card company.

Terms and Conditions Apply

When using your credit card online, you will need to make sure that you are aware of the terms and conditions that are stipulated along with Section 75. According to this section, you will not be able to hold the credit card company responsible for a breach in contract if you have purchased goods or services for less than £100 or more than £30 000.

This section does not apply to debit cards, only credit cards, and you will need to be clear concerning your rights when purchasing items online with a debit card in order to determine whether you are protected in this regard by the Credit Act of 1975/

Partial Payments via Credit Card

According to Section 75, if you pay a small portion of the cost of the goods or services with your credit card and the rest of the amount with a check, the credit card company should reimburse you for the full amount, if a breach of contract has occurred and the company you purchased the goods or services from refuses to accept responsibility.

Charge backs: Not a Legal Requirement

Charge backs are offered by most financial institutions in the event that goods or services are delivered in bad condition or a breach of contract has occurred. Charge backs are not covered by Section 75 and financial institutions are not required to allow them but most of the larger financial institutions will.

Understanding your Rights

Understanding your rights is the best way to ensure that you are protected by those that would try and scam you out of your hard earned money. As a consumer, you should be aware of the fact that you are protected by the law and, in the event that the worst should happen, you should understand the steps that you need to take in order to right a wrong.