This weekend, airline and travel firms will be expecting their biggest day of 2025 as holidaymakers look to banish their January blues and book a trip on ‘Sunshine Saturday’. TotallyMoney is urging customers to protect bookings from fraudsters and airline failures by activating Section 75 when using a credit card:

• Around four in ten (37%) people book a summer holiday at this time of year*
• Last year, two thirds (64%) of people planned to go abroad†
• Booking.com has reported a 900% increase in travel scams over 18 months‡
• Section 75 is free, and covers credit card transactions between £100 and £30,000 — not just when travel companies go bust, but any other qualifying big ticket purchases

Regulated by the Financial Conduct Authority (FCA), credit card firms are equally liable by law if the supplier doesn’t stick to their side of the agreement. That means, if eligible, the customer is guaranteed to get their money back.

 Section 75: SPF for big purchases

This Saturday, travel firms will see a surge in bookings as customers banish their January blues and plan their holidays for 2025. To give holidaymakers extra confidence in getting their money back should something go wrong with the travel firm, or they fall victim to fraud, TotallyMoney is urging people to protect purchases with Section 75 of the Consumer Credit Act.

You could also be covered for ‘consequential losses’ — so if the airline has gone bust and you don’t travel, you might be able to claim hotel and other additional costs.

Section 75 covers any transaction between £100 and £30,000, and is only possible with a valid credit card — not cash, debit cards, loans or buy now pay later services. Only part of the purchase (such as a deposit) needs to be made with a credit card for it to qualify — and it’s free. Making a claim under Section 75 won’t impact your credit rating.

And it doesn’t just cover travel, but also instances such as buying white goods which turn out to be faulty, or a firm failing to deliver on a purchase when it goes out of business.

 Alastair Douglas, TotallyMoney CEO comments:

“In recent years, holiday firms such as Flybe, Thomas Cook and WOW Air have all gone out of business, while we’ve also seen a rise in travel scams. This has left holidaymakers stranded and out of pocket.

“So if you’re making a booking, or even just a big purchase, you should try to use a credit card when paying, giving yourself some extra protection should anything go wrong. That’s because the credit card provider will be equally liable by law if the supplier doesn’t stick to their side of the agreement.

“You could also spread the payments over 22 months with a purchase card, meaning you’ll have until October 2026 to pay it off, without paying any interest. This could give you some extra breathing space and less pressure on your finances. If you’re planning on taking the same card with you on your travels, then check the charges because some will carry extortionate ATM and purchase fees abroad.”
#ENDS

 TotallyMoney selects five Section 75 tips:

Below, Alastair Douglas shares five top tips for securing Section 75 claims, should anything go wrong.

1. It covers purchases between £100-£30,000

“Individual items and purchases costing more than £100 and up to £30,000 are covered under Section 75. So, whether it’s a cancelled flight or an all-inclusive family holiday, as long as you paid for part of it on credit card, you could be reimbursed the full amount if the company goes bust.”

2. It’s just valid for credit card payments

“Unless at least partially paid on a credit card, Section 75 doesn’t apply to purchases using debit cards, cash, loans, or Buy Now Pay Later.”

3. There are some exceptions

“Buying through a third party, like travel agents or even PayPal, might make your Section 75 protection invalid. That’s because it might break what they call the ‘debtor-creditor-supplier’ agreement — so where possible, try and pay directly.”

4. Part pay, full protection

“Remember that only part of the purchase needs to be paid with a credit card — so if you pay the deposit with a credit card and the rest debit, Section 75 should let you claim the full amount.”

5. It covers you for more than just travel

“Section 75 covers all qualifying purchases. Whether that’s when you buy a new television and it turns out to be faulty, or if you buy a new settee and the firm goes under. If you’ve used a credit card, you could be protected under Section 75 of the Consumer Credit Act 1974.”