Fixed Sum Loan Agreement Section 75: Everything You Need to Know
If you`re thinking about taking out a loan, it`s important to understand the terms and conditions of the agreement you`re signing. One key clause you may come across is Section 75 of the fixed sum loan agreement. This clause is designed to protect consumers who use credit to make purchases, and it`s important to know how it works.
What is a fixed sum loan agreement?
Before we dive into Section 75, let`s define what a fixed sum loan agreement is. This is a type of loan where the borrower receives a lump sum of money and agrees to pay it back over a set period of time, with interest. Common examples of fixed sum loans include personal loans, car loans, and mortgages.
What is Section 75 of the Consumer Credit Act?
Section 75 of the Consumer Credit Act is a clause that provides protection to consumers who use their credit card or take out a loan to make a purchase. Essentially, if something goes wrong with the purchase (such as the goods not being delivered, or the supplier going out of business), the consumer can claim a refund from the credit card company or lender.
Under Section 75, the credit card company or lender is jointly and severally liable with the supplier for any breach of contract or misrepresentation. This means that if the supplier goes out of business, the consumer can still claim a refund from the credit card company or lender.
What purchases are covered under Section 75?
Section 75 applies to purchases where the total cost is between £100 and £30,000. This includes both goods and services, as long as they were purchased using a credit card or loan. This means that if you buy a faulty item or are the victim of fraudulent activity, you can claim a refund through Section 75.
It`s worth noting that Section 75 only applies to purchases made in the UK. If you make a purchase overseas, you may still be covered by Section 75, but you`ll need to check with your credit card company or lender to confirm.
How to make a Section 75 claim
If you need to make a claim under Section 75, the process is relatively straightforward. You`ll need to contact your credit card company or lender and provide them with evidence of the purchase, as well as any correspondence you`ve had with the supplier. They`ll then investigate the claim and decide whether to issue a refund.
It`s worth remembering that Section 75 only applies to the credit card company or lender, not the supplier of the goods or services. This means that if you`re not happy with the response you receive from your credit card company or lender, you may need to take further action against the supplier.
In conclusion, Section 75 of the Consumer Credit Act is an important clause to understand if you`re using a credit card or taking out a loan to make a purchase. By providing an extra layer of protection, it can give you peace of mind and help you avoid potential financial losses. If you`re unsure whether your purchase is covered by Section 75, it`s always best to check with your credit card company or lender before making the purchase.