A new OnePoll survey of 2,000 UK adults commissioned by credit experts TotallyMoney has shown that many people don’t fully understand the cover they get through their credit card. If the item you pay for is worth over £100, but less than £30,000, you are covered by Section 75 if you make any of that purchase with your credit card — even £1. Your claim will only be successful if the Debtor-Creditor-Supplier (DCS) Link isn’t broken.This means that the exchange of money between you, your credit card company, and the service provider, must be maintained.
So, when the DCS link is broken, often when using a third party such as PayPal, Section 75 wouldn’t apply. You’re covered on a purchase made with Apple Pay, though, which nearly three quarters of people (71%) don’t realise. But, if you book a hotel through a travel agent, you won’t be covered if it the hotel folds, as over a third (41%) of people wrongly thought. You should, however, be ATOL protected in that instance.
If your airline goes bust before you fly, or your brand-new phone arrives with a cracked screen, you could make a claim to get your money back — provided everything is in order as above.
Alastair Douglas, CEO of credit experts TotallyMoney, said “In a world where many feel the credit system is rigged against them, Section 75 is a safety net. But, many don’t realise it exists. A holiday can be the highlight of your year, or maybe you’ve spent months saving for your dream laptop. But, if it happens you can’t jet off, or the laptop doesn’t even turn on, you can be left feeling like there’s nothing you can do.”
“That’s where Section 75 steps in. It gives you comfort in knowing that if you feel you haven’t received what was promised, that there’s something you can do to get your money back.”
“Section 75 doesn’t mean we should be care-free about our credit card spending, though. One way to know how much you should be spending on your credit card is by getting your TotallyMoney free credit report. You’ll get regular updates on the effect your credit card spending is having on your credit score.”
“On top of that, so you’re never caught out, here are 10 points anyone shopping with a credit card should know about Section 75.”