The crisis facing the high street is expected to intensify after Christmas and it is anticipated that there will be a raft of insolvencies of high street shops, bars and restaurants in the early part of 2019. Shops closed at a rate of almost 14 a day in the first half of 2018, a period that saw several household names disappear and others seek emergency rescue deals to stay afloat.
From our experience businesses who are suffering from financial pressure will hold on until Christmas, their busiest time of year, and then may pull the plug in January.
The purpose of this article is to remind you that any gift vouchers and other purchases you or your family make over the next few days and weeks may fall victim to an insolvency in the new year, and to make you aware of (or remind you of) the protection your credit card offers under the Consumer Credit Act.
Section 75 means your credit card must protect purchases over £100 for free, so if there's a problem you could get your money back. Section 75 is fantastic protection. It means if you order something and the retailer enters an insolvency process you can still claim your money back from the credit card provider. Section 75 applies to most, but not all, credit card agreements. Credit cards are the main area covered, but the law also applies to store cards, store instalment credit and some car finance agreements (though not hire purchase).
Warning! You may not get the Section 75 protection if you use your credit card for PayPal purchases, as it is one of the third-party firms that will often – though not always – scupper your Section 75 rights.