When a car purchase goes wrong, you might have heard about both Section 75 claims and chargebacks as ways to get your money back. But they're very different tools with different rules. Here's when to use each one.
Section 75: The Legal Heavy Hitter
Section 75 of the Consumer Credit Act 1974 is a powerful consumer protection. It makes your credit provider jointly liable with the seller for any breach of contract or misrepresentation.
When Section 75 Applies
Section 75 protection kicks in when the cash price is between £100 and £30,000, you paid using a credit agreement (credit card, HP, PCP), and there's a valid claim against the seller such as faulty goods or misrepresentation.
Key Benefits of Section 75
The credit provider has joint liability – they're equally responsible as the seller. You can claim the full amount even if you only paid a small deposit on credit. The 6-year time limit is much longer than most people realise. If the dealer has gone bust, you can claim against the credit provider instead. And it's enshrined in law, not a voluntary scheme.
Section 75 Limitations
It only applies to credit (not debit cards), has a minimum £100 threshold and maximum £30,000 threshold, and only covers purchases rather than services alone.
Chargeback: The Quick Fix
Chargeback is a process run by card schemes (Visa, Mastercard, Amex) that lets you dispute a transaction and potentially get the money reversed.
When Chargeback Works
Chargeback can help when goods weren't delivered, goods were significantly not as described, the seller has breached the contract, you've been charged incorrectly, or fraud has occurred.
Key Benefits of Chargeback
It works with debit AND credit cards, has no minimum transaction value, is relatively quick (often resolved in weeks), and is a simple process – just contact your bank.
Chargeback Limitations
It's not a legal right – it's a card scheme rule, not law. Time limits are shorter at typically 120 days from the transaction or discovery of the problem. The merchant can dispute the chargeback. It only covers what you paid on that card rather than the full purchase if you paid partly in cash. And there's bank discretion – they can refuse to process it.
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Side-by-Side Comparison
| Feature | Section 75 | Chargeback |
|---|---|---|
| Legal status | Statutory right | Card scheme rule |
| Card types | Credit only | Credit and debit |
| Minimum amount | £100 | None |
| Maximum amount | £30,000 | No limit |
| Time limit | 6 years | ~120 days |
| Covers full purchase? | Yes (even if only deposit on credit) | Only amount paid on that card |
| If seller disputes? | You can escalate to court/ombudsman | Bank decides |
| Seller gone bust? | Still valid | Still valid |
Which Should You Use?
Use Section 75 When:
Use Section 75 when you paid any amount by credit card (even just the deposit), the purchase was £100 or more, you want to claim the full amount (not just what you paid on credit), the dealer is being difficult or has gone bust, you're outside the chargeback time limit (120 days), or you want the strongest legal protection.
Use Chargeback When:
Use chargeback when you paid by debit card (Section 75 won't apply), the purchase was under £100, you want a quicker resolution, you're within 120 days of the transaction, or the issue is straightforward like goods not delivered.
Use Both When:
Here's a pro tip: you can try both.
Start with chargeback for speed. If that fails or only recovers part of your money, pursue Section 75 for the rest. They're not mutually exclusive.
Real-World Example
Tom bought a £15,000 used car, paying a £500 deposit on his credit card and £14,500 on his debit card. The car turned out to have a serious engine fault. Here's what Tom could claim:
Chargeback route: Could potentially recover the £14,500 paid on debit (if within 120 days and bank agrees)
Section 75 route: Could claim the full £15,000 from the credit card company – because he paid part of a purchase over £100 on credit, the credit provider is liable for the whole thing
This is why paying even a small deposit on credit card is so powerful.
How to Make a Section 75 Claim
Write to your credit card company (their address is on your statement). Include your card details and account number, the transaction date and amount, what you bought and from whom, what went wrong (the breach of contract), what you want (refund or compensation), and your evidence (photos, reports, correspondence). Reference Section 75 of the Consumer Credit Act 1974, give them 14 days to respond, and escalate to the Financial Ombudsman if they refuse.
How to Request a Chargeback
Contact your bank by phone, online chat, or in branch. Explain the dispute – goods faulty, not as described, etc. – and provide evidence if asked. The bank investigates and may provisionally credit your account. The seller can dispute the chargeback, and if they do, the bank decides. A final decision usually takes 45-90 days.
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Common Questions
Can I use Section 75 if I paid on a credit card via PayPal?
Possibly not. When you pay through PayPal, there may be a "break" in the debtor-creditor-supplier chain that Section 75 requires. It's a grey area – some card providers honour claims, others don't. Chargeback is often more reliable in this situation.
What if the dealer paid off their terminal before I claimed chargeback?
The chargeback still goes through the card scheme. The dealer's account status doesn't affect your right to dispute the transaction.
Can the dealer take me to court if I do a chargeback?
Theoretically, if they believe the chargeback was unjustified, they could pursue you for the money. In practice, this rarely happens for legitimate disputes, especially with documented faults.
Does Section 75 cover cars bought from private sellers?
Section 75 itself doesn't require a business seller, BUT you need a valid "breach of contract" claim. Private sales have much weaker protections than dealer sales, so there may be no breach to claim for.
The Bottom Line
Section 75 is the stronger option – it's a legal right, covers the full purchase price, and lasts 6 years. Chargeback is faster but isn't a legal right and has shorter time limits. The smartest thing you can do when buying a car is pay at least some of the deposit on a credit card, because this protects the entire purchase amount under Section 75. You can use both routes – start with chargeback for speed and use Section 75 as backup if needed. If you only paid by debit card, chargeback is your main option. Whichever route you choose, keep your evidence – you'll need it.
Dealing with a faulty car? Check if you qualify for our rejection service – we handle the paperwork whether you're claiming against the dealer or the finance company.
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