29 March 2006
The Office of Fair Trading (OFT) has given advice to consumers following the court ruling that goods purchased overseas are covered by section 75 of the Consumer Credit Act.
Section 75 dictates that consumers can claim from their card provider if goods are unsatisfactory.
The OFT made clear to consumers that money lost on an overseas credit card purchase can now be claimed back from the card company.
This can be done if the seller fails to honour the contract, if the item is faulty or if the seller of the item gave an inaccurate description. Money can also be claimed back if a business from overseas goes bust before sending out goods that have already been paid for.
It also advised consumers that it was now a good idea to pay deposits using a credit card, as they will be better protected.
Despite this good news for consumers, the watchdog sought to clarify that consumers will not be covered by section 75 when using their debit card overseas.
John Fingleton, OFT chief executive, said: "The application of section 75 to overseas credit card purchases has long been uncertain, and we are pleased that the court of appeal has been able to examine parliament's intention behind the legislation, and resolve the issue in favour of consumers and in a way which takes account of developments in the market."
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