Consumer credit is when people borrow money to buy goods or services they need. There are many kinds of consumer credit, such as store credit accounts, credit cards, personal loans, instalment loans, and credit lines. 

Usually, there are certain terms and conditions associated with each type of consumer credit, including interest rates, repayment plans, and credit limitations. Owing to these terms and conditions, we frequently witness customers filing a consumer credit dispute claim as many firms fail to abide by the rules.

Protection under the Consumer Credit Act

In the UK, consumer credit agreements are governed under the Consumer Credit Act 1974. It was put into place to control the actions of lenders and other credit providers as well as to safeguard customers who sign credit agreements. Under these credit agreements, consumers are protected by the following under the Consumer Credit Act of 1974:

• Bank credit
• Store and credit cards
• Purchase and hire agreements
• Agreements for conditional sales
• Loans, secured or unsecured

Disputes with Consumer Credit

Consumers can file a consumer credit dispute claim for various reasons. Every instance is different, and we discover that no two explanations are the same.

But from what we can gather, the following are the most frequent causes for filing a claim:

• Credit report errors
• Fraudulent or unauthorised transactions
• Billing disagreements
• Unhappiness with goods or services
• Laws regarding consumer protection being violated

Credit Cards and Chargebacks

Under section 75 of the Consumer Credit Act, you can use your credit card to make purchases from £100 all the way up to £30,000. Even if you simply made part of the payment using your credit card, for instance, the deposit for a holiday, the protection is still in place.

This implies that in the event that the goods you purchased malfunction or the business from whom you purchased them fails, the credit card company will have equal duty, or “liability,” with the vendor.

So, if you use your credit card to pay for anything that costs £100 or more and something goes wrong, get in touch with the vendor as soon as possible to give them the opportunity to make things right.

But, you may file a claim with your credit card company if they don’t respond, won’t offer you a refund, or it’s obvious that there’s no use contacting them since they’ve vanished or entered insolvency.

If you are in a position similar to what has been mentioned here, here’s what you can do:

• Write a letter to the credit card company explaining your purchases, including what you bought, where, when, and how much you spent. If you have copies of your receipts, attach them, if not, you’ll need to provide another form of evidence of purchase.
• Inform them of your attempts to get in touch with the business from whom you purchased the products or services, as well as any answer you may have received.
• Declare that you are “making a claim under section 75 of the Consumer Credit Act” when you explain to the credit card company what you would like done, which is often to return the purchase money to your credit card account.
• Save a copy of the email or letter you sent.

Alternatively, you may file a complaint with the Financial Ombudsman Service if you’re not happy with the response you receive from your credit card issuer. You can also contact an expert such as Johnson Law Group to help with a dispute.