Credit card ruling to be challenged

A LANDMARK ruling preventing consumer protection rights covering credit card users extending to goods and services purchased abroad is to be challenged.

The Office of Fair Trading said it will appeal the High Court's decision from 12 November. The ruling, which was the result of a test case brought by the OFT, was described as a blow to consumers at the time.

The Court had said that cards used overseas do not enjoy the same consumer protection rights under Section 75 of the Consumer Credit Act.

Products or services bought on a card in the UK are covered by legal safeguards that mean customers can claim directly against their credit card company if problems occur.

The OFT took the matter to court because it believes the safeguards apply to card transactions anywhere in the world. Its view was challenged by Lloyds TSB, Tesco Personal Finance and American Express Europe.

A spokeswoman said: 'We disagree with the ruling and are hopeful of a positive outcome.'

Section 75 of the Consumer Credit Act states that 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 with your money before the item is delivered.

The law applies only if the purchase is more than £100 and no more than £30,000. It does not apply to debit cards or charge cards.