In the UK, consumers paying for goods with a credit card are
protected by a provision in the Consumer Credit Act of 1974 that
allows them to make a claim directly against their credit card
company or the supplier if they discover problems with goods or
services purchased with their card.
The credit card issuer and the supplier are jointly liable if
the consumer has a valid claim for misrepresentation and/or breach
of contract by the supplier but only if the cash price of an item
is over £100 but less than £30,000, and the credit limit is no more
than £25,000.
But until now there has been a question mark over whether this
protection also applies to goods purchased overseas.
The OFT argues that it does. Card issuers Lloyds TSB, Tesco
Personal Finance (part of The Royal Bank of Scotland group) and
American Express Services Europe Limited argue that there is no
such protection.
Kate Wilcox, OFT spokeswoman, told OUT-LAW that the OFT
considers this protection "applies equally to web site purchases
that are made in this country from foreign web sites," but that
this point is also in dispute.
The issue will finally be decided in a court case that began in
the High Court yesterday before Mrs Justice Gloster. A ruling is
expected to take several weeks.
