Section 75 and Car Deposits: Claiming a Refund When a Dealer Fails or Misrepresents
You placed a deposit on a car and the dealer has gone into administration before delivery. Or the car arrived and it bears no resemblance to the specification you were sold — wrong trim, undisclosed accident damage, a service history that does not exist. Either way, the dealer is not cooperating.
If any part of the purchase went on a personal credit card, Section 75 of the Consumer Credit Act 1974 may entitle you to a refund from your card provider — for the deposit, the full purchase price, or the cost of putting things right.
Quick check: does this apply to you?
- ✓ You paid at least £1 of the total price on a personal credit card
- ✓ The total purchase price was more than £100 and no more than £30,000
- ✓ The dealer has failed to deliver, gone bust, or the car was materially misrepresented
- ✓ The problem arose within the last six years (England/Wales) or five years (Scotland)
Not sure? Use the free eligibility checker.
Buying a car on a credit card versus car finance
This page covers buying a car outright where you paid some or all of the purchase price on a personal credit card. That is different from a PCP or hire purchase (HP) agreement — those are separate regulated credit agreements and work differently.
If you paid a deposit on a credit card and financed the remainder on PCP or HP, Section 75 applies to the credit card payment. The deposit alone triggers the joint liability for the full contract — so even a small credit card deposit on a car costing £15,000 gives you a Section 75 claim for the full amount if the dealer fails.
Your situation — and what you can claim
Dealer collapsed before delivery. The most straightforward case. The dealer has breached the contract by failing to deliver. Claim the full purchase price — not just the deposit.
Car was not as described. A car sold as “full service history” with no history, described as “one careful owner” with four previous keepers, or represented as accident-free with structural repairs hidden beneath fresh paintwork — all of these are misrepresentations. Section 75 covers misrepresentation as well as breach of contract. You can claim the difference in value between what was described and what was delivered, or a full refund if the misrepresentation was fundamental.
Car arrived with undisclosed faults. If a fault existed at the point of sale and the dealer either knew about it or the car was not of satisfactory quality under the Consumer Rights Act 2015, you have a claim. Independent inspection evidence strengthens this significantly.
Deposit only — dealer still trading but refusing to proceed. If the dealer is holding your deposit and refusing to proceed with the sale, that is a breach of contract. You can claim the deposit back through Section 75.
What to gather before you write to your bank
Collect these before writing to your bank
- ▪Order form or contract showing the car’s specification, agreed price, and any representations made about its history or condition
- ▪Credit card statement showing the deposit or purchase payment
- ▪Any advertisement, listing, or written description of the car — screenshots if online
- ▪For misrepresentation or fault claims: an independent inspection report from a qualified mechanic or RAC/AA engineer
- ▪Any HPI or vehicle history check showing discrepancies
- ▪Written correspondence with the dealer where you raised the problem and they refused to resolve it
- ▪If the dealer is in administration: the administrator’s name and announcement
What to say if your bank pushes back
Your bank may say
”We can only refund the deposit — not the full price.”
Section 75 covers your full loss arising from the breach, not just the amount charged to the card. If you put a £500 deposit on a £12,000 car and the dealer collapsed before delivery, your claim is for £12,000. The deposit is simply what triggers the joint liability — it does not cap it.
Your bank may say
”The car was delivered, so the contract was fulfilled.”
Delivery of a car that was materially misrepresented or is not of satisfactory quality is not fulfilment of the contract. The breach is the misrepresentation or the failure to supply goods of satisfactory quality — both of which are covered by Section 75. Provide your inspection report or evidence of the discrepancy.
Your bank may say
”You should pursue the dealer or the administrator.”
Section 75 imposes joint and several liability. You can claim against the card provider directly without first exhausting your options against the dealer. In an insolvency, unsecured creditors — which is what you are — typically recover very little. Section 75 gives you a direct route to your bank instead.
Your bank may say
”You have been using the car, so you cannot claim a full refund.”
Use of the vehicle after purchase does not extinguish a claim based on misrepresentation. If the car was fundamentally different from what was sold to you, you can still claim — the amount may be reduced to reflect any genuine use, but the bank cannot simply refuse because you have driven the car.
If your bank still refuses
Issue a written rebuttal addressing their stated reasons. If they maintain the refusal, refer the complaint to the Financial Ombudsman Service within six months of their final response letter. Car-related Section 75 disputes — particularly misrepresentation and pre-delivery failures — are among the more common claim types the FOS sees, and a well-evidenced case with an independent inspection report is difficult for a bank to defend.
See our Financial Ombudsman escalation guide for what to include.
What to do now
Get an independent inspection if the car was delivered — an RAC, AA, or independent mechanic’s written report is the single most important document for misrepresentation and fault claims.
Gather your evidence — order form, credit card statement, the original listing or advertisement, and any written correspondence with the dealer.
Write to your card provider’s disputes team — by email or recorded post, citing Section 75(1) of the Consumer Credit Act 1974. State the breach or misrepresentation clearly, and attach your evidence. Do not phone.
Ready to write the claim?
The Section 75 Claim Pack is a plain-English PDF workbook with a template letter citing the correct legislation, an evidence checklist, rebuttal templates for the most common rejection reasons including the deposit-cap argument and the misrepresentation response, and a Financial Ombudsman complaint letter. £6.99, no subscription.
Get the claim pack — £6.99Last updated: 2 May 2026. See also our complete Section 75 guide and our Section 75 vs chargeback guide.