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Antony Antoniou – Luxury Property Expert

The Future of Credit Card Protection: Will Section 75 Be Watered Down?

The Future of Credit Card Protection: Will Section 75 Be Watered Down?


In a significant move that could reshape the landscape of consumer credit regulations, the UK government is considering an overhaul of the rules governing credit cards and loans. As part of this proposed shake-up, there are concerns that the vital refund protections provided by Section 75 could be altered or even abandoned. This potential change has sparked a flurry of discussions among industry experts and consumer advocates, as it has the potential to impact the rights and safeguards available to customers. In this blog post, we will delve into the details of this proposed reform and explore what it could mean for credit card holders and purchasers in the future.

The Consumer Credit Act: An Overview:

At the heart of this reform lies the Consumer Credit Act of 1974 (CCA), which currently governs the regulations surrounding consumer loans, including credit cards, store cards, personal loans, payday loans, and hire purchase deals. This legislation was introduced to establish a unified approach to consumer credit, replacing a patchwork of outdated and inconsistent regulations. One of the most significant features of the CCA is Section 75, which offers crucial protection to consumers who make purchases using credit cards.

The Potential Impact on Section 75 Protections:

Section 75 is a provision that holds both the lender and the seller jointly liable for resolving any issues when a consumer makes a purchase using a credit card, with a transaction value ranging from £100 to £30,000. This protection has proven to be a valuable recourse for customers facing problems such as undelivered products or canceled holidays. However, with the proposed reform, the future of Section 75 protections hangs in the balance.

While the exact changes to Section 75 remain uncertain, there have been suggestions of modifications that could potentially strengthen certain consumer rights while jeopardizing others. For instance, some voices in the industry have argued for limiting lenders’ liability to the value of the loan rather than the entire replacement cost of a product. Additionally, there have been proposals to require customers to first approach sellers for refunds before seeking recourse from the lender.

Government Plans and Industry Response:

A recent Treasury consultation document confirmed the government’s intention to reform the CCA, acknowledging the need for changes in light of technological advancements and the emergence of new credit products like “buy now, pay later” schemes. The document highlighted the importance of maintaining consumer protections while addressing the limitations of the current legislation.

Consumer rights groups and experts have expressed both support and concern regarding the proposed changes. Many recognize the significance of Section 75 and its role in providing consumers with confidence when making credit-based purchases. However, there is a consensus that the provisions could benefit from modernization to align with evolving market dynamics and improve clarity for customers. The Financial Conduct Authority (FCA) has emphasized its commitment to ensuring that consumer credit regulation promotes a competitive market while safeguarding consumer interests.


As the UK government sets out to reform credit card and loan regulations, there is growing anticipation and apprehension surrounding the fate of Section 75 protections. While the full extent of the changes remains uncertain, it is essential to strike a balance between enhancing consumer rights and ensuring the continued competitiveness of the credit market. The upcoming reforms have the potential to shape the future of credit card protection and influence how consumers navigate their financial transactions. As this process unfolds, it is crucial to stay informed about the developments and engage in discussions to ensure that consumer interests are adequately represented in the evolving regulatory landscape.

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