Consumer credit rates and thresholds reference

Guide summary

Section 75 claims can cover the full loss, even if you only paid a deposit by credit card
Section 75 does not cover Buy Now Pay Later, charge cards, debit cards or personal loans with no supplier link
Section 75 has no time limit beyond 6 years in England and Wales; chargeback usually has 120 days
Payday-style lenders can allow a maximum of 2 rollovers and must show a prominent high-cost risk warning
Credit card firms must tell customers in persistent debt after 18 months of paying more interest than principal
Credit card firms must offer ways to repay faster if persistent debt continues for a further 18 months
Give a settlement statement within 7 working days of the customer asking
Issue a final response to a complaint within 8 weeks, or the customer may go to the Financial Ombudsman Service

Key rates, thresholds, and regulatory limits for UK consumer credit.

Section 75 connected lender liability

Section 75 connected lender liability (CCA 1974)

Joint and several liability of creditor and supplier under s.75 of the Consumer Credit Act 1974 for breach of contract or misrepresentation, including the £100 to £30,000 threshold, qualifying agreement types, and the distinction from chargeback.

Under section 75 of the Consumer Credit Act 1974, if a consumer uses a debtor-creditor-supplier agreement (such as a credit card) to purchase goods or services and the supplier breaches the contract or makes a misrepresentation, the creditor is jointly and severally liable with the supplier. This is a powerful statutory right that allows the consumer to claim against the credit provider even if the supplier has ceased trading.

Single item value - lower threshold: £100 minimum (the cash price of the single item or service must exceed £100)
Single item value - upper threshold: £30,000 maximum (the cash price of the single item or service must not exceed £30,000)
Claim amount: The consumer can claim the full amount of the loss, even if only a deposit was paid by credit card. The £100-30,000 thresholds relate to the item price, not the amount paid on credit.
Qualifying agreements: Applies only to debtor-creditor-supplier agreements under s.12(b) or s.12(c) of the CCA 1974, meaning there must be a pre-existing arrangement between the creditor and supplier
Credit cards: Section 75 applies to credit card purchases (including those made overseas) but does not apply to cash withdrawals, balance transfers, or money transfers
Does NOT apply to: Buy Now Pay Later, charge cards, debit cards, procurement cards, or debtor-creditor agreements (such as personal loans with no supplier link)
Chargeback distinction: Chargeback is a voluntary card scheme dispute process (Visa, Mastercard) with no statutory basis, no financial thresholds, and typically a 120-day time limit. Section 75 is a statutory right with no time limit beyond the Limitation Act 1980 (6 years in England and Wales).
Creditor's right of indemnity (s.75(2)): The creditor has a statutory right to be indemnified by the supplier for losses arising from s.75 claims

Consumer Credit Act 1974 - Liability of creditor (s.75) (opens in a new tab)

Section 75 minimum single item value: £100
Section 75 maximum single item value: £30,000
Applies to: Debtor-creditor-supplier agreements only (e.g. credit cards, store cards)
Does not apply to: Deferred Payment Credit (BNPL), debit cards, charge cards, direct debits

High-cost short-term credit (HCSTC) price cap

High-cost short-term credit (HCSTC) requirements

Additional FCA requirements for high-cost short-term credit providers (payday lenders).

Daily interest cap: 0.8% per day maximum
Default fee cap: £15 maximum
Total cost cap: 100% of original loan amount (including all fees and interest)
Rollover restrictions: Maximum of 2 rollovers permitted
Risk warning requirement: Prominent warning about high cost nature of borrowing

HCSTC price cap rules (opens in a new tab)

Maximum daily interest rate: 0.8% of the amount borrowed
Maximum default fee: £15
Total cost cap: 100% of the amount borrowed (borrower never repays more than double)
HCSTC definition: APR of 100% or more, designed to be substantially repaid within 12 months

FCA fees

FCA consumer credit authorisation fees

Application fees and ongoing costs for FCA consumer credit authorisation.

Limited permission application: £560 (Category 2)
Full permission application: £1,130, £5,640 or £11,260, depending on complexity
Community finance organisations: £280 (Category 1)
Annual periodic fees: Based on consumer credit income, with a minimum fee
Variation of permission: £560 within the same fee-block; 50% of the new block's fee if you move
RegData submission: Annual regulatory reporting required

FCA fees calculator (opens in a new tab)

Limited permission application fee: £280
Full permission application fee: £1,500 to £11,150 (depending on activity)
Annual periodic fees: Based on income from regulated activities (minimum fee band applies)
Variation of permission fee: £250 (limited to full) or as per fee schedule

Financial Ombudsman Service

Financial Ombudsman Service consumer credit jurisdiction

FOS jurisdiction, award limits, case fees, time limits, and complaint handling requirements for consumer credit firms.

The Financial Ombudsman Service (FOS) has jurisdiction over complaints about consumer credit activities carried out by FCA-authorised firms. Before a complaint can be referred to FOS, the firm must first have the opportunity to resolve it through its own internal complaints handling procedure under FCA DISP rules. If the firm fails to resolve the complaint within 8 weeks, or issues a final response rejecting it, the customer may refer the matter to FOS.

Who can complain to FOS: Consumers, micro-enterprises, small businesses, small charities, guarantors
Small business test: Turnover under £6.5m, plus balance sheet under £5m or under 50 staff
Maximum award limit: £455,000 (complaints referred from 1 April 2026; acts from 1 April 2019)
Award limit (acts before 1 April 2019): £205,000 (complaints referred from 1 April 2026)
Case fees for firms: £680 per chargeable case after a £2,000 yearly allowance (2026/27)
Reduced case fee: £500 if a professional representative referred it and the outcome is not in the complainant’s favour
Internal complaints deadline: Final response within 8 weeks
Final response letter: Must state the 6-month right to refer to FOS
FOS referral time limit: 6 years from the event, or 3 years from awareness if later
Common credit complaint categories: Affordability, PPI, hire purchase, debt collection, charges, commission
Binding decisions: Binding on the firm if the complainant accepts
FCA DISP rules: Complaints handling, record keeping and reporting

Financial Ombudsman Service for businesses (opens in a new tab)

Maximum FOS award: £455,000 (complaints referred from 1 April 2026 about acts or omissions on or after 1 April 2019)
Case fee: £750 per case (from the 26th case in each financial year)
Free cases per year: 25 per firm
Complaints deadline: Final response within 8 weeks or refer customer to FOS
Consumer referral deadline: 6 months from date of final response

Persistent debt (credit cards)

Persistent debt rules for credit cards

FCA rules under CONC 6.7.27-6.7.39 requiring firms to identify and intervene where credit card customers are in persistent debt, paying more in interest and charges than they repay in principal over 18 months.

The FCA's persistent debt rules (CONC 6.7.27-6.7.39, in force from 1 March 2018 via PS18/4) require credit card firms to take action when customers are in persistent debt. A customer is in persistent debt if, over the preceding 18-month period, they have paid more in interest, fees, and charges than they have repaid of the principal balance.

These rules form a two-stage intervention framework: a notification at 18 months and a mandatory intervention at 36 months. The rules aim to reduce the harm caused by customers making minimum payments indefinitely on revolving credit products.

Persistent debt definition: Customer has paid more in interest, fees, and charges than in principal repayment over 18 months (CONC 6.7.27R)
18-month notification: Firm must contact customer to explain they are in persistent debt, encourage them to pay more, and signpost free debt advice (CONC 6.7.28R)
36-month intervention: If customer remains in persistent debt after a further 18 months, firm must offer ways to repay the balance faster over a reasonable period (CONC 6.7.33R)
Options at 36 months: Firm must propose reasonable ways to increase repayments, which may include reducing the interest rate, suspending interest, or setting up a structured repayment plan (CONC 6.7.34R)
Customer non-response at 36 months: If the customer does not respond to the 36-month intervention or does not agree a plan, the firm must take steps to reduce the outstanding balance, which may include suspending or cancelling the card (CONC 6.7.37R)
Suspension of card use: Firm may suspend or cancel the credit card if the customer does not engage after 36 months of persistent debt (CONC 6.7.38R)
Forbearance obligation: Firms must exercise forbearance before suspending; they must not suspend if they are aware the customer is in financial difficulty and is engaging with debt advice
Rules effective from: 1 March 2018 (FCA PS18/4)

FCA CONC 6.7 - Post contract obligations (credit cards) (opens in a new tab)

Persistent debt definition: Over 18 months, customer has paid more in interest, fees and charges than they have repaid of the principal
18-month notification: Inform customer they are in persistent debt, explain consequences, suggest ways to repay faster
36-month intervention: If still in persistent debt, offer options to repay faster; may need to suspend the card, reduce credit limit, or cancel the card if customer does not respond
FCA source: CONC 6.7.27 to 6.7.39

Early settlement compensation

Maximum compensation (remaining term over 12 months): 1% of the amount repaid early
Maximum compensation (remaining term 12 months or less): 0.5% of the amount repaid early
De minimis threshold: No compensation payable where the early repayment (or total repayments in any 12-month period) does not exceed £8,000
Settlement statement deadline: 7 working days from customer request
Statutory basis: Consumer Credit Act 1974, section 95A; Consumer Credit (EU Directive) Regulations 2010 (SI 2010/1010)

Exempt agreement thresholds

Exempt agreement threshold (high net worth): £60,260 (annual income)
Credit agreement over £60,260 plus business declaration: May be exempt from CCA 1974 regulation
Exempt interest-free credit: No interest, no charges, repayable in 12 or fewer instalments within 12 months
Note: The exempt interest-free credit exemption is being removed for BNPL/DPC from 15 July 2026

Legal basis

Primary legislation and key regulations

Financial Services and Markets Act 2000 Primary 2000 · UK-wide Consumer Credit Act 1974 Primary 1974 · UK-wide Consumer Credit (Early Settlement) Regulations 2004 SI 2004 · UK-wide

Browse UK legislation legislation.gov.uk

Official guidance

Financial Ombudsman Service: complaint limits and fees (opens in a new tab)

www.financial-ombudsman.org.uk

FCA: Fee calculator (opens in a new tab)

FCA

FCA Consumer Credit sourcebook (CONC) (opens in a new tab)

FCA

Consumer credit rates and thresholds reference

Section 75 connected lender liability

High-cost short-term credit (HCSTC) price cap

FCA fees

Financial Ombudsman Service

Persistent debt (credit cards)

Early settlement compensation

Exempt agreement thresholds

Legal basis

Official guidance

Related guides in Tax & Finance

Comply with high-cost short-term credit rules

FCA consumer credit authorisation

Handle consumer credit complaints and the Financial Ombudsman

Section 75 claims and connected lender liability