Credit Cards Online Information

Shoppers who buy faulty goods overseas with their credit cards wil now be given the same protection they receive in the UK.

At the moment, under section 75 of the Consumer Credit Act, card firms must pick up the bill for unsatisfactory goods bought here (if they are faulty, say, and the money can't be refunded) costing between pounds 100 and pounds 30,000.

However, most lenders have argued that the guarantee doesn't extend outside the UK, and only a few have considered claims as a gesture of goodwil.

But last Wednesday, the Court of Appeal backed the stance taken by the Office of Fair Trading, which had challenged an earlier verdict in favour of the banks, and ruled that foreign credit card transactions are also covered by the Consumer Credit Act.

The move was welcomed by Which?. The consumer body called it a "landmark decision" that gave consumers much fuler protection.

Some lenders now fear that they wil, in effect, become "insurers" to faulty goods, and exposed to expensive claims without being able to assess the ful facts. An appeal against the ruling is being considered.

# posted by Medical Information : 4:22 AM