Money Magic

Credit card firms must continue to insure purchases of goods and services made abroad, according to a ruling by the House of Lords.  The online comparison and switching service uSwitch applauded the decision. 

Lloyds TSB and Tesco Personal Finance appealed the Consumer Credit Act, but their action was dismissed. 

As a result, Britons who use a credit card to make purchases abroad of £100 to £30,000 will be insured under Section 75 of the Consumer Credit Act of 1974. 

The ruling was hailed as great news for consumers by Mike Naylor, Personal Finance Expert at uSwitch.  Credit card providers have raised the question of protection for purchases made by credit card overseas. Naylor predicts the ruling by the House of Lords will put the question to rest. 

He added that the ruling, which also insures purchases over the internet of goods shipped to the UK from overseas, means that consumers will be protected when they use their credit cards, no matter where in the world they are. 

Overseas credit and debit card transactions accounted for nearly £16.4 billion for consumers in the UK.

This entry was posted on Thursday, November 1st, 2007 at 4:44 pm and is filed under Credit Cards. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.