Law Weblog

Important protection for purchase outside the UK

Friday 24 March 2006 at 9:14 am | In News | Post Comment

UK consumers have important protection is available to them when using a credit card following yesterday’s ruling by the Court of Appeal that section 75 of the Consumer Credit Act 1974 applies to overseas as well as domestic transactions.
Yesterday’s judgment confirms 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.

Section 75 covers foreign transactions including where:

* a consumer uses a UK credit card to buy goods while abroad
* a consumer orders goods from a foreign supplier while abroad for delivery into the UK
* a consumer in the UK buys goods which are delivered to a UK address from overseas by telephone, mail order or over the internet
* there is face-to-face pre-contract dealings with a foreign supplier temporarily in the UK, or with a UK agent of a foreign supplier, but the contract is not completed in the UK.
* if you pay by credit card you can claim your money back from the card company if the seller fails to honour the contract, or the item is faulty or if the seller wrongly describes it or if the supplier goes out of business
* you do not have to attempt to claim your money back from the seller first – the credit card company is individually liable
* if you are buying an item costing over £100 and you are asked for a deposit, consider paying the deposit by credit card
* you are not covered by section 75 if you use a debit or charge card.