Paid by credit card and something went wrong? You could be owed a full refund under Section 75 of the Consumer Credit Act. Our complete 2026 UK guide explains how to make a Section 75 claim, dispute unfair bank charges, and escalate to the Financial Ombudsman Service — with free complaint letter templates.
For millions of UK consumers, the moment a company takes your money and fails to deliver can feel like the start of a long, demoralising battle. You send emails that go unanswered, you wait on hold for hours, and eventually you wonder whether it is simply easier to give up. But here is the truth: UK law gives you some of the strongest consumer financial protections in the world. The key is knowing how to use them.
In 2026, with the Financial Ombudsman Service (FOS) undergoing its most significant reforms in a generation, the landscape for financial disputes is changing fast. Whether you are trying to reclaim money for a failed purchase using a Section 75 claim, disputing unfair bank charges, or escalating a complaint to the FOS, this guide will walk you through every step of the process — including the exact complaint letter templates you need to get results.
Understanding Section 75 of the Consumer Credit Act 1974
If you paid for something using your credit card and the purchase cost more than £100 and up to £30,000, you are protected by one of the most powerful pieces of consumer legislation in the UK: Section 75 of the Consumer Credit Act 1974.
What Does Section 75 Actually Mean?
Section 75 establishes what lawyers call "joint and several liability." In plain English, this means your credit card provider is equally responsible alongside the retailer for the goods or services you purchased. If the retailer breaches the contract — by supplying faulty goods, failing to deliver, or misrepresenting what they were selling — you can claim your money back directly from your credit card company, even if the retailer has gone bust, disappeared, or simply refuses to cooperate.
This protection is invaluable in a wide range of situations:
- A company goes into administration before delivering your order.
- Goods arrive that are faulty, damaged, or significantly not as described.
- A service provider fails to perform the work they were contracted to carry out.
- A retailer refuses to offer a refund or repair despite their obligations under the Consumer Rights Act 2015.
The Rules You Need to Know
Section 75 is a powerful right, but it comes with specific conditions. Understanding these rules before you make your claim will save you time and frustration.
| Rule | Detail |
|---|---|
| Minimum Value | The single item or service must cost more than £100 |
| Maximum Value | The item or service must cost no more than £30,000 |
| Card Type | Only applies to credit cards, not debit cards |
| Deposit Rule | You only need to pay part of the cost on your credit card to get full protection |
| Direct Link | There must be a direct relationship between you, the card company, and the supplier |
| Time Limit | You generally have up to 6 years to make a claim |
The deposit rule is particularly important and often misunderstood. If you paid a £50 deposit on your credit card for a £500 holiday and the travel company collapsed, you can claim the full £500 from your credit card provider — not just the £50 deposit you paid on the card.
Section 75 and PayPal: A Common Pitfall
Many consumers assume that paying via PayPal while using their credit card gives them Section 75 protection. This is not always the case. When you log in to your PayPal account and pay using a linked credit card, the payment goes from your credit card to PayPal, and then from PayPal to the retailer. This breaks the direct link required by Section 75. However, if you use a credit card as a guest on a PayPal payment page without logging in to a PayPal account, you may retain your Section 75 rights. When in doubt, contact your credit card provider.
How to Make a Section 75 Claim: Step by Step
- Try the retailer first. Before contacting your credit card company, make a reasonable attempt to resolve the issue with the retailer. Keep a record of all communications — emails, letters, and notes from phone calls.
- Contact your credit card provider. Call or write to your credit card company and state clearly that you wish to make a claim under Section 75 of the Consumer Credit Act 1974.
- Insist on Section 75, not chargeback. Credit card companies may try to process your claim as a 'chargeback' (a voluntary scheme) rather than a Section 75 claim (a legal right). These are different. Chargeback has shorter time limits and fewer protections. Be explicit: you are making a Section 75 claim.
- Provide evidence. You will need proof of purchase (receipts, invoices, order confirmations), evidence of the problem (photos of faulty goods, screenshots of misleading descriptions), and proof that you have attempted to resolve the issue with the retailer.
Template: Section 75 Claim Letter
[Your Name] [Your Address] [Your Email Address]
[Credit Card Company Name] [Credit Card Company Address]
[Date]
Subject: Formal Claim under Section 75 of the Consumer Credit Act 1974 — Account Number: [Your Account Number]
Dear Sir/Madam,
I am writing to make a formal claim under Section 75 of the Consumer Credit Act 1974 in relation to a purchase made using my credit card.
Details of the Purchase:
- Item/Service Purchased: [Description of item or service]
- Retailer/Supplier: [Name of retailer or supplier]
- Date of Purchase: [Date]
- Total Cost: £[Total cost]
- Amount Paid by Credit Card: £[Amount paid on card]
Nature of the Complaint: [Clearly explain the problem. For example: "The goods I ordered have not been delivered despite the agreed delivery date of [Date] passing. I have contacted the retailer on [Dates] and received no satisfactory response." OR "The goods arrived in a condition that does not conform to the contract, as they are [describe the fault]. This constitutes a breach of contract under the Consumer Rights Act 2015."]
I have made reasonable attempts to resolve this matter directly with the retailer. I contacted them on [Date(s)] and [explain the outcome — e.g., they have not responded / they refused to offer a remedy].
Under Section 75 of the Consumer Credit Act 1974, you are jointly and severally liable for this breach of contract. I therefore formally request a full refund of £[Amount claimed] to my credit card account.
I have enclosed copies of [list your evidence, e.g., the original receipt, my correspondence with the retailer, photographs of the faulty goods].
Please respond to this claim in writing via email at [Your Email Address] within 14 days. If I do not receive a satisfactory response, I will refer this matter to the Financial Ombudsman Service.
Yours faithfully,
[Your Name]
What if I Paid by Debit Card? Understanding Chargeback
Section 75 only applies to credit cards. If you paid by debit card, or if your purchase was under £100, you will need to use a different route: Chargeback.
Chargeback is not a legal right; it is a voluntary scheme operated by card networks including Visa, Mastercard, and American Express. It allows your bank to request that the retailer's bank reverses the transaction if there is a valid dispute.
Section 75 vs Chargeback: Key Differences
| Feature | Section 75 | Chargeback |
|---|---|---|
| Legal Status | Statutory right under UK law | Voluntary card network scheme |
| Card Type | Credit cards only | Debit, credit, and prepaid cards |
| Minimum Spend | Over £100 per item | No minimum (usually) |
| Maximum Spend | Up to £30,000 | No upper limit |
| Time Limit | Up to 6 years | Typically 120 days from transaction |
| Provider Liability | Card provider is jointly liable | Bank requests reversal; not guaranteed |
To use Chargeback, contact your bank as soon as possible and ask them to initiate a Chargeback claim. Explain the reason for the dispute — for example, goods not received, goods not as described, or a company that has gone out of business. The 120-day clock typically starts from the date of the transaction, or from the date you expected to receive the goods or services.
Disputing Unfair Bank Charges
Bank charges — from overdraft fees to returned payment charges — can spiral quickly, particularly during periods of financial difficulty. While the Financial Conduct Authority (FCA) has introduced rules to make overdraft pricing fairer and more transparent, disputes remain common.
When Do You Have Grounds to Dispute Bank Charges?
You have strong grounds to challenge bank charges in the following circumstances:
- Financial hardship: If the charges are pushing you deeper into debt and preventing you from meeting essential living costs such as rent, food, or utility bills, your bank has a duty of care under the FCA's Consumer Duty rules.
- Bank error: If the charges arose as a direct result of a mistake made by the bank.
- Disproportionate charges: If a minor incident — such as going a small amount overdrawn — has resulted in fees that are entirely disproportionate to the breach.
- Vulnerable circumstances: If you are experiencing illness, bereavement, job loss, or another vulnerability, banks are expected to show forbearance and flexibility under FCA guidelines.
The FCA Consumer Duty: A New Standard of Protection
The FCA's Consumer Duty, which came into full effect in 2023 and continues to be a central pillar of financial regulation in 2026, sets a higher standard of consumer protection across all retail financial services. Under the Consumer Duty, firms must act to deliver good outcomes for their customers. This means your bank must:
- Provide products and services that genuinely meet your needs.
- Offer fair value — meaning the price you pay must be proportionate to the benefit you receive.
- Communicate with you in a way that is clear, fair, and not misleading.
- Provide adequate support, particularly when you are in financial difficulty.
If your bank is applying punitive charges that cause you financial harm, they may well be falling short of their Consumer Duty obligations — and this is a powerful argument to make in your complaint letter.
Template: Letter Disputing Bank Charges (Financial Hardship)
[Your Name] [Your Address] [Your Email Address]
[Bank Name] [Bank Address]
[Date]
Subject: Formal Complaint — Unfair Bank Charges — Account Number: [Your Account Number], Sort Code: [Your Sort Code]
Dear Sir/Madam,
I am writing to make a formal complaint about the bank charges applied to my account and to request a refund of £[Total Amount of Charges] applied between [Start Date] and [End Date].
Details of the Charges: [List the charges, e.g., "Unarranged overdraft fee of £[Amount] on [Date]", "Returned payment fee of £[Amount] on [Date]"]
I believe these charges are unfair and disproportionate to the circumstances. Furthermore, the continued application of these charges is causing me significant financial hardship. [Briefly explain your situation — e.g., "I am currently experiencing financial difficulty following a period of illness / redundancy / bereavement, and these charges are preventing me from meeting my essential living costs."]
Under the Financial Conduct Authority's Consumer Duty, I expect my bank to act in good faith, avoid causing foreseeable harm, and provide appropriate support to customers in financial difficulty. The continued application of these charges is inconsistent with these principles.
I formally request:
- A full refund of the charges totalling £[Total Amount].
- A freeze on any further charges while this complaint is under investigation.
- A review of my account to ensure I am on the most appropriate product for my circumstances.
Please respond to this complaint in writing via email at [Your Email Address]. Under FCA guidelines, I expect a final response within 8 weeks.
If I am not satisfied with your response, I will refer this matter to the Financial Ombudsman Service.
Yours faithfully,
[Your Name]
Escalating to the Financial Ombudsman Service (FOS)
If your credit card provider or bank has rejected your complaint, or if 8 weeks have passed without a final response, you have the right to escalate your case to the Financial Ombudsman Service (FOS) — a free, independent service that resolves disputes between consumers and financial businesses.
The 2026 FOS Reforms: What They Mean for You
In March 2026, the UK government, the FCA, and the FOS announced a landmark package of reforms to modernise the redress system. The changes are designed to make the system faster, fairer, and more consistent. Key reforms include:
- A new registration stage to ensure that complaints referred to the FOS are within its scope and ready to be investigated before being allocated to a caseworker, reducing delays.
- New powers to dismiss complaints that are better resolved in other ways, are more appropriate for the courts, or where there has been no material financial loss, distress, or inconvenience.
- Greater regulatory alignment, ensuring that FOS decisions are more closely anchored to FCA rules, providing greater certainty for both consumers and businesses.
- A new 10-year time limit for consumers to bring complaints, replacing the previous 6-month rule from the date of the final response letter in certain circumstances.
These reforms are broadly positive for consumers. A faster, more streamlined FOS means quicker resolutions and less time spent in limbo waiting for your case to be heard.
How to Complain to the FOS: A Step-by-Step Guide
| Step | Action | Timeframe |
|---|---|---|
| 1 | Complain formally to the financial business | Day 0 |
| 2 | Receive a final response letter (or wait 8 weeks) | Within 8 weeks |
| 3 | If unsatisfied, contact the FOS | Within 6 months of the final response |
| 4 | Submit your complaint online or by post | As soon as possible |
| 5 | FOS investigates and issues a decision | Typically within several months |
| 6 | If you accept the decision, it becomes binding | Upon acceptance |
To submit your complaint to the FOS, you will need:
- A copy of the final response letter from the financial business (or evidence that 8 weeks have passed).
- All correspondence between you and the business.
- A clear explanation of why you are unhappy with the outcome.
- Details of the financial loss, distress, or inconvenience you have suffered.
If the FOS finds in your favour, their decision is legally binding on the financial business. They can order the business to pay compensation, refund charges, or take other remedial action.
Frequently Asked Questions
How long do I have to make a Section 75 claim? You generally have up to 6 years to make a Section 75 claim in England, Wales, and Northern Ireland (5 years in Scotland). However, it is always best to act as quickly as possible, as evidence can become harder to gather over time.
Can I make a Section 75 claim if the retailer has gone bust? Yes. This is one of the most valuable aspects of Section 75. Because your credit card provider is jointly liable, you can claim directly from them even if the retailer has ceased trading or entered administration.
What if my credit card company refuses my Section 75 claim? If your credit card company rejects your claim, you can escalate the complaint to the Financial Ombudsman Service. The FOS handles a significant number of Section 75 disputes each year and will assess your case independently.
Do I need a solicitor to dispute bank charges or make a Section 75 claim? No. These processes are designed to be accessible to consumers without legal representation. A well-structured, legally referenced complaint letter is often all you need to get results.
What is the difference between a final response letter and a deadlock letter? They are the same thing. A final response letter (sometimes called a deadlock letter) is the financial business's formal, final position on your complaint. Once you have received this letter, you have 6 months to refer the matter to the FOS.
Get Your Money Back with LetterForce
Navigating financial disputes — whether it is a stubborn credit card company refusing a legitimate Section 75 claim or a bank applying charges that are pushing you into hardship — is exhausting. Companies know that most people give up when faced with complex processes, generic rejection letters, and the feeling that they are fighting alone.
You are not alone, and you do not have to give up.
LetterForce is an AI-powered complaint letter generator built specifically for UK consumers. In minutes, it can generate a structured, professionally drafted complaint letter that references the exact legislation relevant to your situation — the Consumer Credit Act, the FCA Consumer Duty, and more. Our letters are designed to force internal escalation within financial institutions and get your complaint taken seriously from the very first contact.
Your first letter is completely free. No legal knowledge required. No solicitor fees.
Generate your free, legally-backed complaint letter with LetterForce today and take the first step towards getting your money back.
References
[1] MoneyHelper. "Section 75 and chargeback protection." Accessed March 20, 2026. https://www.moneyhelper.org.uk/en/everyday-money/credit/how-youre-protected-when-you-pay-by-card
[2] Financial Conduct Authority. "Consumer understanding: good practice and areas for improvement." March 13, 2026. https://www.fca.org.uk/publications/good-and-poor-practice/consumer-understanding-good-practice-areas-improvement
[3] Financial Ombudsman Service. "New measures to modernise and transform the UK redress system." March 16, 2026. https://www.financial-ombudsman.org.uk/news/new-measures-modernise-transform-uk-redress-system
Ready to Write Your Letter?
LetterForce generates professional, legally-sound complaint letters in minutes — backed by UK consumer law.