Banks fail in legal battle over credit cards
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Lloyds TSB and Tesco Personal Finance have been defeated in their attempt to have a key piece of consumer protection legislation overturned.
The banks had argued that Section 75 of the Consumer Credit Act – which states that purchases of between £100 and £30,000 on a credit card must be insured by the card provider – should not apply to goods bought overseas. However, the House of Lords dismissed the banks' appeal to an earlier decision that Section 75 did apply to overseas purchases.
John Fingleton, chief executive of the Office of Fair Trading (OFT), which was fighting the banks in the case, welcomed the Lords' decision. "It confirms that credit card issuers are individually and jointly liable with suppliers if a consumer has a valid claim against the supplier for misrepresentation or breach of contract.
"[We are] particularly happy that it has been resolved in a way that gives greater protection to consumers."
In response, the Association for Payment Clearing Services (Apacs) tried to put a brave face on things. "At long last we have clarity," said Sandra Quinn of Apacs. "The banks now know where they stand and there is no doubt it is good for consumers."
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments