Here’s something banks don’t tell victims when they request a chargeback or refund for card payments after realising they’ve been scammed: if you transferred your funds via a credit card payment. Section 75 of the UK Consumer Credit Act 1974 creates joint liability between credit card providers and retailers for purchases between £100 and £30,000, and the goods are not delivered or services are not rendered as ordered. Therefore, the card companies are entirely liable for refunding the amounts transferred to scammers like Barak and Lenhoff.
Conditions to fall under Section 75 are:
- Section 75 applies as long as the price of the goods/service is over £100 and does not exceed £3o,ooo excluding fees like delivery charges, etc.
- Section 75 applies when you have paid for the goods using your card directly to the (international) trader, creating a 3-party agreement between you, the trader and the credit card company.
So if you’ve bought cryptocurrency or transferred money to investment scam websites like OptionStarsGlobal, XTraderFX, SafeMarkets, Option888, ZoomTrader, or XMarkets, and made these payments by credit card, you may be eligible to claim a full refund of these transfers from the payment providers involved. Legally, your credit card provider is required to refund you, but they will hold the acquiring bank or merchant responsible for the fraud.
Limitation period
According to the law, a claim can be filed within six years from the date of purchase. However, in cases involving scams like Xtraderfx or OptionStarsGlobal, victims often realise they’ve been defrauded much later. Therefore, Gal Barak (beneficial owner of OptionStarsGlobal, XTraderfx, SafeMarkes, and GoldenMarkets) was found guilty of severe fraud on 1 September 2020.
Do not trust your bank/credit card provider!
Banks routinely reject scammed victims’ claims for chargebacks and Section 75 refunds, often refusing to take responsibility. Don’t trust their initial response; they will do everything to deny liability. Stay persistent, hold them accountable, and keep pushing. Remember, Section 75 protections also apply to cryptocurrency purchases if the crypto was never delivered to your wallet.
