Section 75 Credit Card Protection When Buying Property: What's Covered and What Isn't

What Section 75 Protection Is

Section 75 of the Consumer Credit Act 1974 makes a credit card company jointly and severally liable with a supplier for any breach of contract or misrepresentation where the purchase price of the item or service is between £100 and £30,000 and the item or service was paid for, in whole or in part, by credit card.

"Jointly and severally liable" means you can claim against your credit card company directly, even if you cannot recover anything from the supplier. This protection has been used successfully by consumers when retailers go bust, when services are not delivered, and when goods are not as described.

For property buyers, the question is when — and whether — Section 75 applies.

Where Section 75 Can Apply in Property Transactions

**New-build reservation fees and deposits paid by credit card:** If a developer accepts credit card payment for a reservation fee or stage payment on a new-build property (uncommon but not unheard of), Section 75 protection applies provided the payment exceeds £100. If the developer becomes insolvent before completion and the deposit is not returned, you have a claim against your credit card issuer.

**Property-related services:** If you pay a solicitor's disbursement, a surveyor's fee, or a structural engineer's fee by credit card, Section 75 protection attaches to that transaction. If the service is not delivered or is delivered negligently, you can claim against the card company as well as (or instead of) the service provider.

**Searches and reports:** Online conveyancing search providers increasingly accept card payments. Section 75 applies to these purchases within the price thresholds.

Where Section 75 Does Not Apply to Property Purchases

**The purchase price itself:** In the overwhelming majority of residential property transactions, the purchase price is paid by bank transfer (CHAPS or faster payment) from your solicitor's client account to the seller's solicitor. Credit cards are not used for the main consideration, so Section 75 does not apply.

**Deposits paid to solicitors:** If you transfer your exchange deposit to your solicitor by bank transfer (as is standard practice), Section 75 does not apply. The protection is specific to credit card payments.

**Payments above £30,000:** Section 75 covers items or services between £100 and £30,000. If a new-build deposit exceeds £30,000, you lose Section 75 protection on the full amount. However, if you could split the payment across multiple transactions, protection could still apply — take legal advice in this situation.

**Debit cards:** Section 75 does not apply to debit card transactions. A separate, weaker protection called "chargeback" may apply to debit card payments, but it is not statutory and has lower success rates.

The "Linked Transaction" Rule

One of the most significant limitations of Section 75 in a property context is the requirement that the credit card payment must be made directly to the supplier who is also a party to the contract. If you pay an intermediary — for example, a managing agent — rather than the developer directly, the protection may not attach.

The Financial Ombudsman Service (FOS) has ruled on several cases where cardholders argued that Section 75 applied to property-related payments via third parties. The outcomes have not always been in the consumer's favour, and the precise factual circumstances matter greatly.

NHBC Buildmark and Deposit Protection Schemes

For most new-build purchases, deposit protection is better provided by the NHBC Buildmark warranty scheme or similar (Premier Guarantee, LABC) than by attempting to structure credit card payments for Section 75 purposes. Buildmark protects deposits up to 10% of the purchase price against builder insolvency from exchange through completion and provides structural warranty cover for ten years.

When researching a new-build developer, Property Passport UK can help you access publicly available data including EPC data and planning information for a site, giving you a fuller picture of the property before you commit any deposit.

Practical Advice

Where credit card payment is accepted for any property-related service, use a credit card rather than a debit card if the amount is between £100 and £30,000 — the protection costs you nothing extra if you clear the balance immediately. Keep records of all transactions and the contract or invoice they relate to. If you need to make a Section 75 claim, contact your card issuer in writing, setting out the breach of contract or misrepresentation and the amount you are claiming.