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UK Banks now responsible for Overseas Credit Card purchases
By admin | June 7, 2008
Quite a number of our readers (about 30% I believe) are UK residents. Those who travel outside the UK will be interested to read this case, which makes it much easier to sue your UK credit card company in the case of any problems overseas…
| Date: | 19 February 2008 |
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Specialist travel and tourism solicitor Andrew Morton at Manchester law firm Pannone LLP says a landmark decision from the House of Lords (Office of Fair Trading – v – Lloyds TSB Bank) means that tourists and other travellers abroad have had rights against their credit card companies confirmed, under Section 75 of the Consumer Credit Act 1974.
“The decision”, says Andrew Morton, “means that a traveller who pays for goods and services abroad by credit card has a direct route to compensation for injuries and other losses against his credit card company. This avoids the need for the traveller to pursue his/her claim against a foreign entity, for example a hotel, theme park or excursion provider, through the Court of that country. The right against the credit card company can be enforced here in the UK with the bank, in effect, stepping into the shoes of the supplier of the services.
New route to a remedy
“The growth in D.I.Y and bespoke packages means more holidays and trips abroad may not now be covered by the Package Travel Regulations 1992. Left to take action against a foreign company, the traveller often finds that this is not viable. This new route to a remedy takes away many of the difficulties that could see travellers being advised to leave action against the travel company aside in favour of a simpler remedy against their bank.
“For example, a traveller booking a hotel in Majorca by credit card who is injured by the negligence of the hotel or its staff can now sue his bank in England with no direct reference to the hotel itself”.
It should though be noted that this only applies to regulated credit card transactions where the value of the transaction falls between £100.00 and £30,000.00.
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June 7th, 2008 at 2:34 am
[...] Brubrew wrote an interesting post today onHere’s a quick excerptUK Banks now responsible for Overseas Credit Card purchases June 7th, 2008 Quite a number of our readers (about 30% I believe) are UK residents. Those who travel outside the UK will be interested to read this case, which makes it much easier to sue your UK credit card company in the case of any problems overseas… Date: 19 February 2008 Specialist travel and tourism solicitor Andrew Morton at Manchester law firm Pannone LLP says a landmark decision from the House of Lords (Office of Fair [...]