Festival refunds are not guaranteed so know your rights, warns the Financial Ombudsman Service

With the festival season underway, we’re warning that many consumers may not understand their rights to getting their money back if things go wrong.

In the last financial year, the Ombudsman received 8,500 complaints about Section 75 and chargeback. But some of these showed that cardholders did not understand the rules.

‘Section 75’ – shorthand for Section 75 of the Consumer Credit Act 1974 – covers purchases made by:

• a credit card
• point-of-sale loan – a loan arranged by the retailer to pay for goods, or
• other finance.

If a product is faulty, does not arrive or was not as described – and consumers are not able to resolve this with the supplier – they may be able to claim back the value from their credit provider. Each purchase made using a credit card must cost more than £100 and no more than £30,000 to qualify.

A ‘chargeback’ lets consumers challenge and try to recover payments made using a debit or credit card, although it only applies in certain circumstances. Banks and card providers will ask for supporting evidence before starting the process, and card issuer rules will apply.

For example, if a tent was faulty, a new outfit never arrived, or the event was cancelled, consumers should contact the supplier first to try and resolve the issue.

If that does not work, they should check whether their complaint matches the criteria for Section 75 or chargeback and raise it with their bank or credit provider. If the financial firm refuses a refund and the consumer disagrees, we can look into a complaint.

Viv Kelly, our Ombudsman Director for Consumer Credit, said:

The summer months can be fun and filled with exciting events for many people. While people are dusting off their wellies, they should read the terms and conditions carefully of their festival tickets and not automatically assume they’re protected by their bank.

If something does go wrong, people may be able to get their money back, but it’s important that they understand the rules that apply. If consumers remain unhappy, they can bring a complaint to our free service, and we’ll see if we can help.

To help festival goers understand when chargeback or Section 75 may apply this summer, we have outlined some common misconceptions and what to do instead.