Section 75 ruling means consumers can shop with confidence

In response to the House of Lords ruling this morning, which confirmed that Section 75 of the Consumer Credit Act 1974 applies to credit card transactions in the UK and overseas, Martyn Hocking, Editor of Which? Money says:

“This ruling is excellent news for consumers. Anyone buying items costing between £100 and £30,000 with their credit card will now enjoy the same level of protection under Section 75 regardless of where they make the purchase. This positive ruling will remove the uncertainty surrounding purchases overseas and over the internet, and consumers will be able to shop with greater confidence.

“Foreign travel and the internet have opened up huge new markets to consumers and the level of cover they receive when purchasing items with their UK credit card should not be restricted geographically. With most credit card companies, consumers already pay a charge each time they use a credit card abroad - the least they can expect is the same level of protection as they enjoy at home.”

 - Ends -

Notes to Editor

• Section 75 of the Consumer Credit Act 1974 states that credit card issuers are 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. Consumers are entitled to make a claim against the credit card issuer as well as or instead of against the supplier.
• A High Court ruling in 2004 said that the Act didn’t apply to overseas purchases. The ruling was overturned in March 2006 when The Office of Fair Trading applied to the Court of Appeal. The House of Lords Judgement now clarifies that Section 75 applies to purchases made in the UK and abroad.