Section 75 claims, chargeback rules, and the evidence your bank needs to act — a guide to recovering fraud losses through your bank.
Section 75 — Credit Card Protection
Under Section 75 of the Consumer Credit Act 1974, if you paid for goods or services costing between £100 and £30,000 using a credit card and the supplier breached their contract or committed misrepresentation, your credit card provider is jointly liable. This applies to investment fraud where the firm made false representations.
Chargeback — Debit Card Protection
Chargeback is a voluntary scheme operated by Visa, Mastercard, and other card networks. It allows you to dispute a transaction and request a reversal. Unlike Section 75, it is not a legal right — but banks generally honour legitimate chargeback requests. Time limits apply: typically 120 days from the transaction date.
What Your Bank Needs
- Evidence that the transaction was fraudulent or that the firm misrepresented its services
- Copies of all communications with the firm
- Evidence that you attempted to resolve the issue with the firm first
- Transaction records showing the payments made
Bank Transfer Fraud (APP Fraud)
If you transferred money directly by bank transfer (not card), Section 75 and chargeback do not apply. However, the Authorised Push Payment (APP) fraud reimbursement scheme — mandatory for UK banks from October 2024 — requires banks to reimburse victims of APP fraud up to £85,000 in most cases.
If Your Bank Refuses
If your bank refuses a legitimate chargeback or Section 75 claim, escalate to the Financial Ombudsman Service. The FOS has ordered banks to reimburse customers in many cases where initial claims were refused.