Section 75 Consumer Credit Act 1974 Costs



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What is a Claim under Section 75 Consumer Credit Act?

Part of the Consumer Credit Act 1974 provides protection to consumers of a product or service when they pay for the same using a type of credit, such as a credit card to finance the purchase.

Section 75(1) of the Consumer Credit Act stipulates that:

“If the debtor under a debtor-creditor-supplier agreement falling within section 12(b) or (c) has, in relation to a transaction financed by the agreement, any claim against the supplier in respect of a misrepresentation or breach of contract, he shall have a like claim against the creditor, who, with the supplier, shall accordingly be jointly and severally liable to the debtor.

In simple terms, Section 75 protection means that consumers will be entitled to make a claim against the creditor and supplier if a breach of contract or misrepresentation has occurred. In most circumstances, this means that the purchaser will be able to obtain a refund from the retailer or their credit card company for the goods or services.


Making a claim under Section 75 Consumer Credit Act 1974

Section 75 applies to purchases under specific circumstances:

  • The goods or services must have cost more than £100, but must not exceed £30,000.
  • The transaction must be made using a credit agreement which is regulated by the Consumer Credit Act
  • The credit agreement must fall into a category known as “debtor-creditor-supplier agreements”  within section 12(b) or (c) of the Consumer Credit Act.

Before making a Section 75 claim, you should always attempt to obtain a refund from the retailer you made the purchase with. If you are unable to get a refund, you should ask your bank for a claim form and specify on the form that you intend to make a section 75 claim.

If you are unable to resolve the issue with the retailer or using a Section 75 claim, you may wish to use the Financial Ombudsman Service.

Section 75 does not apply to cash withdrawals, debit cards or pre-paid cards. Instead, a chargeback claim can be made if you hold a Visa, Mastercard or American Express card. This should be done within 120 days of when you noticed the issue.


Section 75 Consumer Credit Act 1974 Claims Costs

If a Claimant is successful in making a Section 75 Consumer Credit Act 1974 claim, they may be able to make a claim for costs against the Defendant.

In order to recover their legal costs, following the acceptance of a Part 36 Offer or an Order awarding costs, the successful Claimant will need to draft and file a Bill of Costs alongside a Notice of Commencement. The Bill of costs should detail the costs for the work done on your case as well as any fees for disbursements incurred throughout your case.

Under CPR 47.9, the Defendant is then required to file their Points of Dispute within 21 days of service of the bill of costs. This will stipulate the legal costs arguments that the paying party is submitting should reduce the detailed bill of costs.

If the Defendant do not send their Points of Dispute within 21 days, the successful Claimant can apply for a Default Costs Certificate which will entitle them to recover all costs stipulated within the bill of costs.

If the Defendant send their Points of Dispute, the Claimant can further seek to negotiate the costs by sending their Replies to the Points of Dispute. If an agreement cannot be reached using these types of negotiations, the case may need to proceed to a Detailed Assessment Hearing in which a Judge will decide upon the appropriate level of costs to be awarded to the Claimant.


How can ARC Costs Assist?

ARC Costs can assist in the recovery of your costs if you are conducting a claim under the Consumer Credit Act by drafting Costs Budgets (which are required in Multi Track claims at the point of allocation), and on a successful outcome a Bill of Costs will be produced.  On commencing detailed assessment proceedings, assistance with costs negotiations and settling of Points of Reply may also be required.

Alternatively, if you are the unsuccessful Defendant or a Paying Party in proceedings to this type of claim, we can assist in the preparation of your Points of Dispute and in negotiating a reduction in the legal fees claimed against you or your company.

Our Costs Lawyers are independent, experienced and regulated, and regularly assist both Paying and Receiving parties by providing representation on your case, and advocacy services at any detailed assessment hearing.

We can be contacted via email at, or by telephone on 01204 397302.

For more information on legal costs, visit our services or legal costs page. You can also seeing working examples of our work on the case studies page.



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