The Office for National Statistics reports that in 2024, the average weekly household expenditure was £623.30, which was a nominal increase of £55.60 (10%) from 2023. As costs are rising every year, this makes every pound spent count even more.
When making purchases, you may be wondering what protections are available. In the UK, there’s Section 75, which consumers should be aware of.
What Is Section 75 and Why Does It Matter for Families?
Section 75 is a part of the Consumer Credit Act. It gives shoppers protection when paying for purchases by credit card (including this UK credit card for bad credit score), and it applies to goods or services costing between £100 and £30,000.
Basically, if something goes wrong, the credit card provider can be held equally responsible alongside the retailer. This includes things like:
- A company going bust
- Goods never arriving
- Products being faulty
For families, this can apply to many common purchases, such as:
- Prams
- Kitchen appliances
- Family holidays
- Nursery furniture
- Children’s lessons booked in advance
When Section 75 Protects Family Purchases
Section 75 covers a wide range of everyday family expenses (if they meet the qualifying rules). For example, if you spend £700 on a pram and it arrives damaged, you can claim a refund through your card provider if the retailer refuses to give your money back.
The most important thing to note is that the protection only applies if there is a direct relationship between the cardholder, the credit provider, and the supplier. If you use a third-party intermediary or digital wallet, this may prevent a successful claim.
Important Rules Families Should Understand
There are several key rules families should know before relying on Section 75 protection. Firstly, the individual item or service should cost between £100 and £30,000, although the total credit card bill can be much larger.
Supplementary cardholders are usually covered since the main account holder remains legally responsible. Partial payments also count; for instance, a parent could pay a £50 deposit on a £2,000 holiday and still receive full protection.
However, debit cards aren’t covered under Section 75. Instead, banks may offer a chargeback, which is a voluntary scheme rather than a legal right. Generally, this offers weaker protection and stricter time limits.
Common Pitfalls and How to Avoid Them
One of the biggest mistakes families make is assuming every card payment automatically qualifies. Also, problems often arise when using intermediaries. Another pitfall is splitting payments across different methods.
Families should keep the following in case they need evidence later:
- Receipts
- Invoices
- Booking confirmations
- Communication records
Using a credit card directly with the supplier whenever possible is the safest way to ensure that you get Section 75 protection if something goes wrong.
Your Purchases Can Be Protected
Now that you’ve learned about Section 75, this should hopefully give you more confidence when making purchases with your credit card. Just make sure to stay within the limits and avoid using debit cards, as those aren’t covered.
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Monica Costa founded London Mums in September 2006 after her son Diego’s birth together with a group of mothers who felt the need of meeting up regularly to share the challenges and joys of motherhood in metropolitan and multicultural London. London Mums is the FREE and independent peer support group for mums and mumpreneurs based in London https://www.londonmumsmagazine.com and you can connect on Twitter @londonmums
