Foreign transactions still protected by credit card cover

A decision by the House of Lords means consumers are still protected by their credit cards when buying overseas goods between £100 and £30,000.

According to the Office of Fair Trading (OFT) the judgement confirms credit card providers are liable along with suppliers if a consumer claims against the supplier for breach of contract or misrepresentation.

The ruling confirms that section 75 of the Consumer Credit Act 1974 applies to foreign and domestic transactions

OFT chief executive John Fingleton said: “We are pleased that the House of Lords has resolved the issue and particularly happy that it has been resolved in a way that gives greater protection to consumers.”

High street banks previously appealed against a similar decision by the court of appeal.

Lloyds TSB has expressed its disappointment with the ruling as it says section 75 has no validity with foreign transactions.

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