As many of us know, Using a credit card for transactions over £100 provides you with an automatic insurance policy should the supplier you are dealing with go bust or disappear, or if the goods turn out to be faulty. This is because under Section 75 of the Consumer Credit Act, if you run into problems and you can’t get recompense from the supplier, the credit card company has equal liability. But what about consumers who bought goods and services overseas or from foreign companies?
In 2004 the High Court said the protection afforded by Section 75 was only for domestic customers buying in the UK from UK firms. This has since been overturned by the Court of Appeal who have confirmed that the protection given to consumers by the Credit Act does apply to foreign transactions. This also includes buying goods for delivery to the UK from overseas by telephone, mail order or over the internet.
If you are having difficulty pursuing a claim against a credit card issuer, or they are telling you that you must first get a court judgment against the supplier, report it to the Financial Ombudsmen (www.financial-ombudsman.org.uk). They may even be able to award you compensation.