Credit Card protection under threat

  anchor 09:27 08 Jan 2003
  anchor 09:27 08 Jan 2003

I read that the European Commisison is moving to end the law that provides British consumers, who pay by credit card, the unique protection if purchases go wrong. This was enacted in section 75 of the Consumer Credit Act of 1974.

We have enjoyed this protection in that a refund would be provided by the credit card company, if the purchase went "awry", (as long as the goods cost between £100 and £30,000).

The reason for this move by Brussels is to harmonise credit card regulations across Europe.

It would be interesting to hear the views of Forum members on this matter.

  Sir Radfordin™ 10:15 08 Jan 2003

For a while it would no doubt kill online shopping for those who want to play it safe. BUT I think the Credit Card companys would continue to offer this as a value added service to its customers. Barclaycard for one already offer a large number of services to protect online shoppers (and those in the real world) so its unlikely to have any long term affects.

Having said that, I for one, would not like to see this change happen.

  BRYNIT 10:53 08 Jan 2003

To harmonise credit card regulations across Europe!.
Why don't they add this to their cards instead then everyone will benifit. but then this is bureaucracy and it seams Britain has very little control over.

  Djohn 11:50 08 Jan 2003

BRYNIT, I agree, it should be added throughout the EU rather than taken away from us. J.

  Ranger 12:06 08 Jan 2003

I have to agree, Eorope should follow us in this legislation. I for one would buy less on the internet and with my credit card in general if it didn't have this protection

It's to bring us all down to the same level because that's cheaper than bringing europe up to our level. I would think that those companies that withdrew this facility would lose out to those that kept it.

  spuds 20:05 08 Jan 2003

Possibly a surprise to some!. But if you applied for and received a credit card account prior to 1974, then the credit consumer act as no bearing on present day terms and conditions.Most banks and finance houses offer a "voluntary agreement" arrangement, to cover protection on sales above £100.In Law the Consumer Credit Act will only cover people who applied for their credit after 1974, so any of the older generation, who applied for their credit card before 1974, and have received renewals, on expiry of your old cards since 1974, make sure that your credit card provider covers you via this voluntary agreement.If they do not, then cancel your card and re-apply as a new applicant.

  Forum Editor 21:04 08 Jan 2003

and I was faced with possible legislation along the proposed lines I would certainly be considering a policy of offering the service to my customers voluntarily as Sir Radfordin™ suggests. I would expect my competitors to match my offer within a very short space of time, and we would all continue to enjoy the same protection - albeit without force of law.

We're talking about a highly competitive industry here, and card providers will be facing a tough battle to gain business as the economy slows during the coming year or so.

  Sir Radfordin™ 22:37 08 Jan 2003

Did we not have this debate before about cards applied for before 1974? Can't remember the outcome, but its no worry for me, wasn't even born then!

  gerry54 10:56 12 Jan 2003

Perhaps we can also 'harmonise' the cost of cars, wine, food, clothes etc etc with our European partners

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