Credit card companies face day in court

22 July 2004
The Office of Fair Trading will be battling it out in the high court to dispute a credit card ruling.

Today sees the OFT trying to clarify the current situation on who is responsible for purchases made by customers when abroad.

At the moment products bought on a credit card in the UK are covered by legal safeguards, which mean customers can claim directly against their credit card company if problems occur.

Under the current credit card act issuers have "equal liability" with the firm selling the product or service if something goes wrong and the customer makes a valid claim.

The law states that a claim is possible if the purchase is more than £100 and does not exceed £30,000.

However, it is unclear whether the same law applies to purchases made in another country.

The OFT feels the same safeguards apply to all credit cards irrespective of where the purchases are made

Yet Lloyds TSB, Tesco Personal Finance and American Express Services Europe, are challenging this position.

The case is expected to run until July 29th, with a judgment likely to be issued later this year.