Martin Lewis explains ‘£100 rule’ that offers major protection to credit card holders

Credit card users need to know this

He explained that Section 75 of the Consumer Credit Act means credit card companies can be held jointly responsible with retailers for purchases costing between £100 and £30,000.

Credit card users with providers such as Lloyds, Halifax, Bank of Scotland, NatWest, HSBC, Santander and Nationwide could have an extra layer of protection when things go wrong, thanks to these rules.

Lewis said the protection applies even if customers only pay part of the cost on their credit card. In some cases, paying just a small amount by card could still make the provider liable for the full purchase price.

He explained that this gives shoppers another option if an item is faulty, a company goes out of business, or a purchase made abroad becomes difficult to resolve with the retailer.

Lewis said: “It means you have exactly the same rights with the credit card company as you do with the retailer.”

However, he warned that Section 75 does have some technical exceptions and may not cover every situation. 

He also advised people using credit cards for expensive purchases to pay off their balance in full each month to avoid paying interest.

Despite the limitations, Lewis said the rule provides valuable extra protection for consumers making bigger purchases.