For Homeowners

Spreading the cost – Pay by Credit Card and get added protection of Section 75

There are many reasons for using a credit card to make a purchase, an easy way to spread the cost of an unexpected expense such as a broken boiler may be one of them. There is also another benefit often overlooked, protection legally given to certain purchases under Section 75 of the consumer credit act.

In short, pay for something costing more than £100 and up to £30,000 on credit, the credit provider’s equally liable if something goes wrong.

This is a legal protection put in place to ensure you are never in the position of paying off debt for something you did not receive or was not as it should’ve been.

Section 75 is great protection – if you order something and the supplier goes bankrupt, you can still claim your money back from the credit card provider, even if you have since closed your credit card account.

Not all purchases are covered, so do make a careful check, and think twice before using a third-party payment processor such as PayPal, this sometimes means that you are not covered.

Bear in mind you do not have to pay the whole amount on credit, as long as you pay at least £100, and the purchase qualifies, you are covered.

Further reading here:


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