24 October 2008
Trading Standards advice over credit card sales
Officers from Bridgend County Borough Council's Trading Standards service have issued advice for people using their credit cards to purchase goods.
Should retailers or suppliers of goods and services cease trading during the current economic climate, consumers may be unsure where to turn to for help and advice.
If you buy goods or services from a trader using a credit card, then by law, the credit card company are jointly liable for a breach of contract if the cost of the goods or service was more than £100 or less than £30000.
Section 75 of the Consumer Credit Act 1974 applies to all transactions funded by a credit card where the goods are priced between £100 and £30000. This section of the Act states that in these circumstances if there is any breach of contract by the retailer for example the goods are faulty, the holiday is not received, or the concert tickets were not delivered, then the credit card company is jointly responsible for your loss.
It is also important to note that to gain the protection; you do not need to spend the full amount on the credit card. For example, if you buy a holiday from your travel agent you could pay the deposit on the credit card and the balance by another means of payment. The law still allows you to claim the full amount of the holiday from the credit card company if the travel agent or holiday company goes bust.
Bridgend Trading Standards service recommends that if you're buying something or ordering tickets or flights worth over £100, you should consider paying for some or all of the cost it on the card to ensure you are protected.
Said Lee Jones, Acting Head of Trading Standards: "Consumers should be aware that credit card companies make their money from the interest rates that they charge. In some cases, the amount of interest you will have to pay will outweigh the protection, so think about paying off your balance every month to avoid paying interest charges."
Consumers should also be aware that the legal protection only applies to credit cards. Debit cards such as Visa Delta or Switch are not covered by the Consumer Credit Act and neither are credit card cheques that are offered by several credit card companies. Electronic payment systems such as PayPal or WorldPay are also outside of the protection of Section 75.
However, some banks do offer protection for debit card purchases but these are subject to the bank's own terms and conditions but it is worth contacting your bank prior to making a larger purchase to check what protection they are able to offer.
For more advice, call Bridgend Trading Standards on (01656) 643643 or Consumer Direct on 08454 040506.
Ends - for more information, contact the Communications team on (01656) 643217, 643663 or 643648. Website: www.bridgend.gov.uk Email: talktous@bridgend.gov.uk
- Last Updated: 24/10/2008
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