![Pinterest](https://pinterest.com/pin/create/button/?url=https://uknews.evprotec.com/government-to-axe-critical-credit-card-refund-guarantees-shoppers-arent-happy/&media=https://uknews.evprotec.com/wp-content/uploads/2023/07/ccetj0-broken-piggy-bank-british-622114014-1.jpg&description=LOW BLOW Published : 13:38, 11 Jul 2023 Updated : 13:38, 11 Jul 2023 A CRITICAL rule allowing customers to get a refund from their credit card company is to be axed. The government announced its plans to scrap Section 75 of the Consumer Credit Act this morning - along with ditching the rest of the legislation it includes. 1 Consumers set to lose full refund guarantee from credit card providers Credit: Alamy Under the Section 75 law, consumers can claim a full refund for faulty goods or services bought on their credit card from their card provider if the retailer won't pay up. It means there is a double layer of protection for customers buying big ticket items which go wrong. Sarah Coles, personal finance expert at Hargreaves Lansdown , said losing the right to a full refund on holidays is just one example of what consumers will lose when the Act is given the chop. "At the moment you can pay the deposit for a holiday on your card, and as long as it's for between £100 and less than £30,000, the whole cost of the holiday will be covered," she said. "A change might mean you need to put the whole lot on plastic to get the same protection." Another example would be if you bought a ticket for a concert that was cancelled. "At the moment you also claim for your train ticket and hotel," Sarah said. "But some of those quoted in the government's paper argued this shouldn't be included within the new rules. "There were also questions over whether people should be able to claim from their credit card without pursuing the vendor first, which could make reclaiming cash more complicated and time-consuming." Why get rid of the Consumer Credit Act? The government response to its consultation "Reforming the Consumer Credit Act 1974" claims the rules are no longer fit for purpose . Andrew Griffith, economic secretary to the Treasury, said that back in 1974, the Consumer Credit Act (CCA) was a "landmark piece of legislation" . He called it "a new and comprehensive set of protections for){kind=link}
A CRITICAL rule allowing customers to get a refund from their credit card company is to be axed and replaced with new rules.
The government announced its plans to scrap Section 75 of the Consumer Credit Act this morning – along with ditching the rest of the legislation it includes.
Under the Section 75 law, consumers can claim a full refund for faulty goods or services bought on their credit card from their card provider if the retailer won’t pay up.
It means there is a double layer of protection for customers buying big ticket items which go wrong.
The rule is still in place for the moment and it’s not confirmed exactly what will change.