Retailer in Administration Section 75 Claim Letter
Retailer gone bust? Your credit card provider is jointly liable under Section 75 of the Consumer Credit Act 1974. Send a formal claim from £2.79.
Send a Section 75 claim letter from £2.79What You Need to Know
- ✓Section 75 of the Consumer Credit Act 1974 makes your credit card provider jointly and severally liable with the retailer for any breach of contract or misrepresentation.
- ✓It applies to single items between £100 and £30,000 paid even partly on a UK credit card. Debit cards, PayPal, and most buy-now-pay-later products are not covered.
- ✓When a retailer goes into administration, the card provider must refund undelivered goods, unused vouchers, gift cards, and pre-paid services.
- ✓You have six years from the breach to claim under the Limitation Act 1980. "Claim from the administrator" is not a valid response from your card provider.
About the Claim
Section 75 of the Consumer Credit Act 1974 makes your credit card provider jointly and severally liable alongside the retailer for any breach of contract or misrepresentation on purchases between £100 and £30,000. You do not need to exhaust your options against the retailer first. The card provider is liable from the moment the breach occurs.
When a retailer enters administration, recovering money directly from the company becomes extremely difficult. Unsecured creditors, which includes ordinary customers, sit near the bottom of the payment queue and often receive nothing. Section 75 cuts through this by letting you claim directly from your card provider for the full transaction value, typically within days rather than months.
The scope of a Section 75 claim covers undelivered goods, unused gift cards and vouchers, deposits paid for services that were never delivered, and pre-paid orders that the retailer can no longer fulfil. Even if you paid only a small deposit on your credit card and the rest by bank transfer or cash, the full transaction value is covered under Section 75.
Legal basis
- ·Consumer Credit Act 1974, s.75 (joint and several liability of creditor)
- ·Consumer Credit Act 1974, s.75A (linked credit agreements)
- ·Limitation Act 1980, s.5 (six-year limitation period for contract claims)
- ·FCA Handbook DISP rules (Financial Ombudsman Service jurisdiction and procedures)
- ·Consumer Credit (Increase of Monetary Limits) Order 1983 (£100 and £30,000 thresholds)
Which scenario applies to you?
Undelivered goods or unfulfilled order
You placed an order and paid by credit card. The retailer went into administration before dispatching your goods. The card provider is jointly liable for the full purchase price under s.75 CCA 1974. Your letter demands a full refund and cites the administration as the triggering breach of contract.
Unused gift cards or vouchers
You hold gift cards or vouchers issued by the retailer that are now worthless because the company has collapsed. Gift cards and vouchers represent a contractual obligation by the retailer to provide goods or services. If you bought them on a credit card, the card provider is jointly liable for the unspent balance.
Pre-paid services not delivered
You paid in advance for a service, such as a gym membership, holiday package, or subscription, and the retailer ceased trading before delivering it. The failure to provide the service is a breach of contract. Your credit card provider is jointly liable for the amount paid, even if the service was to be delivered over time.
What the Letter Accomplishes
PostRight generates a formal Section 75 claim letter that sets out your legal basis, cites the relevant legislation, and creates a dated physical record sent by Royal Mail Tracked 24.
- 1Sets out the date of purchase, amount paid, goods or services ordered, and the administration status of the retailer
- 2Cites Section 75 of the Consumer Credit Act 1974 and the joint and several liability of the card provider
- 3Demands a full refund of the transaction value, not just the credit card portion
- 4Reserves the right to escalate to the Financial Ombudsman Service if the card provider fails to respond within the stated deadline
Your Rights
Section 75 in plain English
Section 75 of the Consumer Credit Act 1974 says that if a retailer breaches a contract or makes a misrepresentation on a purchase between £100 and £30,000, your credit card provider is equally liable. You can claim directly from the card provider without first pursuing the retailer. This is a statutory right that card providers cannot contract out of.
The £100 to £30,000 threshold
The single item or service must cost between £100 and £30,000 to qualify. The threshold applies to the individual item, not the total order value. If you bought three items at £80 each, none of them individually qualifies. If you bought one item at £120, it qualifies even if you only paid £1 of it on your credit card.
What is in scope and what is not
Section 75 covers purchases made on a UK credit card. It does not cover debit cards, prepaid cards, charge cards (unless they are credit cards), PayPal, Klarna, or most other buy-now-pay-later products. American Express cards are covered. Business credit cards may not be covered if the purchase was for business purposes.
The six-year time limit
You have six years from the date of the breach to bring a Section 75 claim under the Limitation Act 1980. The breach date is typically the date the retailer failed to deliver, or the date the administration was announced if goods were already overdue. Do not delay. Card providers may raise limitation as a defence if you wait too long.
Do not accept "claim from the administrator"
Some card providers incorrectly tell customers to submit a claim to the administrator instead of processing the Section 75 claim themselves. This is wrong. Section 75 liability is joint and several, meaning the card provider is independently liable regardless of what happens in the administration. If your card provider refuses, you can escalate to the Financial Ombudsman Service free of charge.
Common Scenarios
1Retailer went into administration before delivering your order
You placed an order, paid by credit card, and the retailer announced administration before your goods arrived. The card provider is jointly liable for the full purchase price. Your letter demands a refund and cites the administration as the breach of contract triggering your Section 75 right.
2Gift cards or vouchers became worthless when the retailer collapsed
You purchased gift cards or vouchers from the retailer using your credit card. The retailer has now entered administration and the cards are worthless. If the cards were bought on a credit card and the face value of each card was between £100 and £30,000, you have a Section 75 claim for the unspent balance.
3Pre-paid for a service the retailer never delivered
You paid in advance for a service, such as a holiday, gym membership, or event ticket, and the retailer ceased trading before delivering it. The failure to provide the service is a breach of contract. Your credit card provider is jointly liable for the amount you paid.
4Card provider says "claim from the administrator"
Your card provider has told you to submit a proof of debt to the administrator rather than processing your Section 75 claim. This is incorrect. Section 75 liability is independent of the administration process. The card provider cannot redirect you to the administrator as a substitute for honouring its own statutory liability.
5You paid only a deposit on your credit card
You paid a deposit of, say, £200 on your credit card and the remaining £800 by bank transfer. The full £1,000 transaction is covered under Section 75, not just the £200 deposit. Your letter claims the full transaction value from the card provider, not just the amount charged to the card.
Send your Section 75 claim letter via Royal Mail
PostRight generates a legally accurate Section 75 claim letter tailored to your situation. Answer a few guided questions, review your letter, and PostRight prints and posts it via Royal Mail Tracked 24 within one business day. A posted letter creates a dated physical record that is far harder to ignore than an email or an online form.
- ✓Cites Section 75 of the Consumer Credit Act 1974
- ✓Sets a clear deadline for the card provider to respond
- ✓States the escalation path to the Financial Ombudsman Service if ignored
- ✓Printed on quality paper and posted by Royal Mail Tracked 24
- ✓From £2.79 -- no subscription required
Frequently Asked Questions
How does Section 75 work when a retailer goes into administration?
Section 75 of the Consumer Credit Act 1974 makes your credit card provider jointly and severally liable for any breach of contract by the retailer. When a retailer enters administration, it cannot fulfil its contractual obligations, which is a breach of contract. You can therefore claim the full purchase price directly from your card provider without waiting for the administration process to conclude.
What if I only paid a deposit on the credit card?
Section 75 covers the full transaction value, not just the amount you paid on the credit card. If you paid a £200 deposit on your credit card and the remaining £800 by bank transfer, you can claim the full £1,000 from the card provider. The key requirement is that the credit card was used for part of the payment and the total item cost was between £100 and £30,000.
Does Section 75 apply to debit cards, PayPal, or Klarna?
No. Section 75 applies only to credit cards. Debit cards, prepaid cards, PayPal, Klarna, and most other buy-now-pay-later products are not covered. If you paid by debit card, you may have a separate chargeback right through your bank, but this is a voluntary scheme rather than a statutory right and has a shorter time limit of 120 days.
Should I claim from the administrator or the card provider?
You should claim from your card provider under Section 75. Some card providers incorrectly direct customers to the administrator, but this is wrong. Section 75 liability is joint and several, meaning the card provider is independently liable regardless of what happens in the administration. Submitting a proof of debt to the administrator does not affect your Section 75 rights, but it is not a substitute for them.
The card provider is refusing or delaying. What can I do?
If your card provider refuses your Section 75 claim or fails to respond within eight weeks, you can escalate to the Financial Ombudsman Service free of charge. The FOS has jurisdiction over Section 75 disputes and regularly upholds claims where card providers have incorrectly refused. Your PostRight letter reserves this escalation right explicitly.
Free Advice Resources
If you need free, independent advice about your Section 75 claim, the following organisations can help.
Citizens Advice
Free, independent advice on consumer rights, credit card claims, and Section 75.
Visit website →Financial Ombudsman Service
Free dispute resolution service for complaints against credit card providers. Can order refunds under Section 75.
Visit website →MoneySavingExpert: Section 75
Comprehensive guide to Section 75 claims, including template letters and step-by-step advice.
Visit website →GOV.UK: Consumer Credit Act
Official government guidance on the Consumer Credit Act 1974 and your rights as a consumer.
Visit website →Related Section 75 Letters
Ready to send your Section 75 claim letter?
PostRight prints and posts your letter via Royal Mail Tracked 24 -- no printing, no stamps, no hassle. From £2.79.
Send a Section 75 claim letter from £2.79From £2.79 · Printed & posted by Royal Mail Tracked 24 · Dispatched within one business day