Buying on Credit UK: Consumer Rights & Section 75

Overview

Buying on credit simply means a lender pays the retailer on your behalf, and you repay the lender over time or in one lump sum. Credit cards, store cards, hire purchase agreements, personal loans arranged at the point of sale, and buy-now-pay-later products can all fall within this category, though the legal protections vary depending on the type of credit used.

The two most important pieces of legislation for consumers are the Consumer Rights Act 2015, which sets out the standards goods and services must meet, and the Consumer Credit Act 1974, which governs how credit agreements work and what lenders owe you. On top of that, the Financial Conduct Authority regulates most consumer credit firms and has detailed rules about how they must treat customers, handle complaints, and deal with arrears.

Together, these rules give you stronger rights than you'd have paying cash, but only if you know how to use them.

Key steps

1. Check whether your purchase qualifies for Section 75. This protection applies to most regulated credit agreements where the cash price of the single item or service is more than £100 and not more than £30,000. Debit card payments do not count, and some buy-now-pay-later products may fall outside the regime depending on how they are structured.
2. Go to the retailer first. Under the Consumer Rights Act 2015, the seller is your first port of call if goods are faulty, not as described, or unfit for purpose. Put your complaint in writing, set out what you want (repair, replacement, or refund), and keep copies of everything including receipts, order confirmations, and any correspondence.
3. Contact your credit provider if the retailer won't help. If the seller refuses to resolve the issue, goes out of business, or simply ignores you, raise a Section 75 claim with your card issuer or lender. They are jointly and severally liable for breach of contract or misrepresentation by the retailer, meaning you can pursue either or both.
4. Provide clear evidence to support your claim. Send your lender proof of purchase, a description of the problem, photos or expert reports where relevant, and a record of your attempts to resolve matters with the retailer. The stronger your paper trail, the faster the lender can investigate and respond.
5. Escalate to the Financial Ombudsman Service if needed. If your credit provider rejects the claim or you're unhappy with their final response, you can refer the matter to the Financial Ombudsman Service free of charge. The Ombudsman can make binding decisions against the lender if it finds in your favour.