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Consumer group welcomes credit card ruling

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    Consumer group Which? has welcomed a court decision which gives credit card users greater protection when using their cards abroad. The court of appeal ruling means that foreign transactions are covered by Section 75 of the Consumer Credit Act, so consumers are not liable for faulty goods or fraud from transactions with foreign companies.
    "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," commented Mike Naylor, principal researcher at the company.
    "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."
    However, Lloyds TSB was disappointed with the news, telling the Telegraph that it would "become the insurer, for no premium, of the performance of most of the hotels in the world".




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