Credit card ruling by House of Lords – Much appreciated

Posted 2007-11-1

Yesterday, uSwitch was more than glad when a ruling was passed by a House of Lords to the effect that credit card companies needed to refund customers who purchased goods or services with their card whilst they were overseas.

Lloyds TSB and Tesco Personal Finance who had appealed against the Consumer Credit Act was dismissed.

What this means that, under Section 75 of the Consumer Credit Act of 1974, any credit card purchase between the range of 100 to 30,000 pounds, that was made overseas would continue to be insured by credit card companies.

Expressing his delight at this ruling, is Mike Naylor, Personal Finance Expert at uSwitch, stated that this is indeed welcome news for consumers. He explains that, this momentous decision has been instrumental in finally taking a stand over credit card protection for transactions abroad, which have been an ongoing issue with credit card suppliers. Furthermore with this decision, now consumers can utilize their card world over and still enjoy the same benefits as they do in the UK. This is particularly essential especially considering the amount that people spend using their cards for shopping over the net and goods being sent to the UK from websites which are located abroad.

Statistics reveal that in 2006, around 16.4 billion was spent overseas on credit and debit card transactions.

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