Protection granted to overseas credit transactions

Posted 2007-11-1

Price comparison company uSwitch welcomed a ruling made yesterday by the House of Lords directing credit card providers to allow refunds to consumers who buy goods and services abroad. Consequently, credit card purchases between £100 and £30,000 made overseas will still be insured by the providers under Section 75 of the Consumer Credit Act 1974. 

With £16.4 billion spent abroad last year on credit and debit transactions, the ruling is “great news for UK consumers”, states Mike Naylor, Personal Finance Expert at uSwitch. 

“This landmark decision has finally laid to rest the issue over credit card protection for overseas transactions which has been rumbling on with credit card suppliers for several years.” 

“The decision to uphold it means that wherever in the world consumers use their credit card, they can enjoy the same protection as they do in the UK. This is especially important with the growth of internet shopping where goods are often shipped to the UK from sites based overseas.” 

Lloyds TSB and Tesco Personal Finance lodged an appeal the Consumer Credit Act, but the appeal has since been dismissed.

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