Understanding Section 75 Of The Consumer Credit Act

Section 75 of the Consumer Credit Act is an act of Parliament in the United Kingdom. The Consumer Credit Act is an update of the Consumer Credit Act of 1974.  It provides protections for credit consumers and allows them to bring suit against both providers of goods and credit.  It also better defines the requirements that must be expressed in every loan agreement entered between a creditor and credit user.

What Section 75 Means

Specifically, Section 75 is a means to impose equal liability on a lender or creditor for breaches of contract by a supplier. What this means in simpler terms is that if you buy from a company and that company suddenly goes bankrupt, sends faulty or fraudulent merchandise, or simply disappears, then the company that issued the credit account on which the purchase was made is required to law to share responsibility of any refunds. The idea is to give consumers piece of mind when dealing with credit purchases.

Things to Note

One of the most important stipulations about Section 75 is that it only applies to amounts from 100 pounds to 30,000 pounds. On the bright side, Section 75 has since been expanded for a modern economy and now applies to transactions that are overseas, transactions with foreign companies, and for any goods shipped overseas to the UK that were ordered by phone, mail, or over the internet.

 

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