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A few weeks ago, we gave you a preview of the most wanted toys this Christmas. In the build up to the busy season ahead, we’ll keep you updated on the best Black Friday deals and give you more ideas on gifts and also how to make your own too. That way, when the festive season finally rolls around, you’ll be on top of it all.

So though you think it might not be ready for the sound of carols, the shops have already started getting out the cards and baubles, it’s better to plan for a stress-free Christmas and get a budget and list in place now. But what can you do if anything goes wrong with your purchases? Let’s take a look at the power that Section 75 gives you for your credit card purchases.

Section 75

If you have started to put your present list together, you probably have an idea what the big one-off purchases will be. This might be a music system, games console or maybe you’re looking at treating all the family to a new TV.

With your savings in place, you’ll have a clearer idea what’s affordable and within your grasp while spending this Christmas. As long as you’re comfortable repaying what you spend, then Section 75 of the Consumer Credit Act is a great way to protect your-one off luxury purchases. So if they are faulty or don’t turn up at all, and you bought them on your credit card it will give you extra peace of mind.

Section 75 protects purchases worth between £100 and £30,000 for products and some services that turn up being faulty or don’t arrive because the retailer goes bust. This rule gives you the power to reclaim what you spend online or in-store from either the retailer or the credit card provider.

If you paid for part of your purchase on your credit card – a deposit of £100, for example – and covered the rest via your debit card, you could still claim your money back. 

Another example of bringing Section 75 into action might be if you choose to buy a service – so let’s say you’re buying dance lessons for your son or daughter. It’s often cheaper to buy a block of lessons of 10 or 20. Even if you made a £1 purchase for the lessons on your credit card and the school went out of business, as long as the block lessons cost more than £100, you’ll be covered. So if your child took five lessons and the company went bust, you’d still be able to claim because they aren’t receiving the full block.

Be one of the wise people this Christmas

So ultimately, Section 75 is a helpful piece of protection for credit card consumers, and it’s a great advantage if making luxury purchases this year. The key is not to be tempted into spending more than you planned and step outside of your budget plan and face January blues. Stick to your budget, be savvy and don’t fall victim to Christmas overspending.

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