Your rights when paying by credit cardHow to complain

To complain to your credit card company about a faulty product.

1 Write to your card company

If you have a problem with something you’ve bought with a credit card, you may want to take the matter up with the credit provider rather than the retailer. This could be because the retailer has refused to help, hasn’t answered your letters, or has gone bust. Remember though that the card provider will only be jointly liable under section 75 of the Consumer credit Act when the goods or services cost over £100 and less than £30,000.

Write to the credit provider with the date and details of the transaction, what your problem is and what you want done about it (for example, a refund).

Remember that, unlike the retailer, the credit provider won’t know anything about the product or service you have paid for, so you will need to give full details of what you paid for, and what the problem is you want fixed.

Explain any contact you've had with the retailer about the matter. Give the creditor a reasonable time to respond, say, 14 days.

2 Escalate matters

If the credit provider does not respond, or if it refuses your claim, give it one final chance to change its stance and warn that if it doesn't that you will refer your dispute to the Financial Ombudsman Service. You have the right to go to the Ombudsman if you reach 'deadlock' with the credit provider or more than eight weeks has passed from when you submitted you claim to it without receiving a substantive response.

Going to the Ombudsman is completely free and you only need complete a simple claim form. If the Ombudsman agrees with your claim it can order the credit provider to compensate you (up to £100,000). If you are not happy with the Ombudsman's decision you are still free to go to court.

3 Begin court proceedings

If the credit provider does not respond, in theory you could start court action rather than go to the Financial Ombudsman Service.

A word of warning though, court action should be used as a last resort and where there is a recognised alternative means for resolving a dispute open to you, the judge may ask why you didn't use it. Going to court is also more complex than taking a claim to the Ombudsman and unlike a claim to the Ombudsman you will have to attend in person to present your claim. It could also be much more costly. You'll have to foot the bill for legal costs yourself, and while you should have these paid back to you if your claim is successful, you will have to find the money to pay for a solicitor and barrister at the start of the case. 

If your claim is less than £5,000 in England and Wales, £3,000 in Scotland and £2,000 in Northern Ireland, you can proceed through the small claims court - or equivalent. You are not expected to employ a legal representative in these courts, so the costs are much less.

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