Holidaymakers who purchase faulty goods with creditcards get refunds

November 24th, 2007 by admin

Holidaymakers who purchase faulty goods or services on holiday can now claim a refund from their credit card company, following a landmark ruling.

Under Section 75 of the Consumer Credit Act, consumers have long been able to claim a refund from their card company if goods and services bought in the UK prove to be faulty. But the House of Lords has now ruled they can also do so if they buy overseas.

The law applies to purchases over £100 and under £30,000. So if you’ve paid for a vehicle that doesn’t work, clothes that fall apart or an all-day massage from a spa that doesn’t exist, you can get your money back. Just remember to pay for it all on your credit card.

Until now, many card companies have coughed up in these circumstances as a sign of goodwill, even though legally they had no obligation to do so.

But it is an important rule because with more people buying from foreign companies over the Internet, and abroad, there was no guarantee that the card companies would continue paying.

So, great news for holidaymakers, but not so good for the companies or the banks that own them. Their liability in this so-called global marketplace is set to continue rising.