If You Use Youer Credit Card Abroad You Can Get Consumer Protection
January 10th 2012 17:38
This top advice is from a firm of solicitors involved in consumer rights.
Purchases made using a credit card like Visa or MasterCard receive exactly the same protection under the Consumer Credit Act 1974 as would purchases made at home.
Under Section 75 of the Act, if a retailer sells goods in breach of contract (e.g. the goods prove defective), so long as there's a valid claim against the retailer, you have the option of making a claim against the credit card company rather than (or in addition to) the retailer, so you don't have to go back to the country you spent the money in to make a claim.
This is possible because these cases are deemed to be 'commercial agreements', which include consumer-retailer transactions by a UK-based credit card holder for any one item worth between £100 and £30,000. It also applies if you merely paid a deposit using your card on a higher priced item and even if payment of the balance wasn't made by credit card, the protection under Section 75 is still applicable.
Hire-purchase agreements and some other credit agreements (where the Act is referred to) may also be covered. You may wonder which country's law will apply in respect of, say, a claim concerning goods of an unsatisfactory quality if, for example, the implied terms such as those in UK contracts under the Sale of Goods Act do not apply in the county of purchase. If the purchase was made in the EU, this might not be such a problem as consumer legislation is broadly harmonised across member states. Where this isn't the case, the credit card company (and ultimately the court) may require some proof that there's been a breach of contract.
Note though that purchases made by cash, cheque or a club charge card for example, are not covered. This is because these transactions are not based on there being the assumption of pre-existing arrangements between a supplier of goods and a credit provider, such as does indeed exist between credit card companies and those retailers accepting their cards by customers. So the rule is, when abroad, use your credit card rather than cash or cheques if you want full Section 75 protection.
Purchases made using a credit card like Visa or MasterCard receive exactly the same protection under the Consumer Credit Act 1974 as would purchases made at home.
Under Section 75 of the Act, if a retailer sells goods in breach of contract (e.g. the goods prove defective), so long as there's a valid claim against the retailer, you have the option of making a claim against the credit card company rather than (or in addition to) the retailer, so you don't have to go back to the country you spent the money in to make a claim.
This is possible because these cases are deemed to be 'commercial agreements', which include consumer-retailer transactions by a UK-based credit card holder for any one item worth between £100 and £30,000. It also applies if you merely paid a deposit using your card on a higher priced item and even if payment of the balance wasn't made by credit card, the protection under Section 75 is still applicable.
Hire-purchase agreements and some other credit agreements (where the Act is referred to) may also be covered. You may wonder which country's law will apply in respect of, say, a claim concerning goods of an unsatisfactory quality if, for example, the implied terms such as those in UK contracts under the Sale of Goods Act do not apply in the county of purchase. If the purchase was made in the EU, this might not be such a problem as consumer legislation is broadly harmonised across member states. Where this isn't the case, the credit card company (and ultimately the court) may require some proof that there's been a breach of contract.
Note though that purchases made by cash, cheque or a club charge card for example, are not covered. This is because these transactions are not based on there being the assumption of pre-existing arrangements between a supplier of goods and a credit provider, such as does indeed exist between credit card companies and those retailers accepting their cards by customers. So the rule is, when abroad, use your credit card rather than cash or cheques if you want full Section 75 protection.
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