Credit card protections extended overseas

23 March 2006
The Court of Appeal yesterday ruled that credit card companies must extend the same insurance protections to purchasers of faulty goods bought overseas as currently apply to purchases in the UK.

The historic decision applies to purchases of between £100 and £30,000, and applies to online purchases as well as face-to-face transactions made overseas.

In his judgement, Lord Justice Waller declared: "There is no evidence to suggest that these problems are unmanageable, and in our view they are part of the price card issuers have to pay for the benefits obtained through allowing cards to be used abroad."

Consumer group Which? has claimed the ruling a victory for customers.

Principal research Mike Naylor commented: "This landmark decision confirms what Which? has always believed - that credit card holders should have the same protection when they use their card overseas as they do in the UK. Section 75 of the Consumer Credit Act gives cardholders the right to claim their money back, from the card company as well as the retailer, if a company goes out of business or if goods are faulty.

"It is great news for consumers that they are now officially covered wherever the card is used."

UK credit card users make make around 180 million overseas transactions per year, worth £13 billion.

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