Court rules credit card protection covers overseas purchases

UK shoppers who use their credit cards to buy goods from abroad will get the same protection as when conducting a domestic transaction, the Court of Appeal has ruled.

The Court of Appeal that section 75 of the Consumer Credit Act 1974 applies to overseas as well as domestic transactions.

The Office of Fair Trading (OFT) appealed an earlier decision by the high-court which stated that section 75 did not apply to overseas purchases.

The OFT argued that credit card issuers are individually as well as jointly liable with suppliers if the consumer has a valid claim for misrepresentation or breach of contract by the supplier where the price of the purchase is above £100 but no more than £30,000.

Cardholders are, therefore, able to make a claim against the credit card issuer as well as or instead of the supplier.

John Fingleton, OFT chief executive, said: “The application of section 75 to overseas credit card purchases has long been uncertain, and we are pleased that the Court of Appeal has been able to examine Parliament’s intention behind the legislation, and resolve the issue in favour of consumers and in a way which takes account of developments in the market.”

© Adfero Ltd

Leave a Reply

Your email address will not be published. Required fields are marked *