Consumer Credit - Law is Clarified
Nov 22, 2007
Author:Iwan Emanuel

In a leading test case on an area of law which was previously unclear the Lords have decided this important issue.

Iwan Emanuel says:
“The case involved Lloyds TSB and Tesco Personal Finance who challenged the application of Section 75 of the Consumer Credit Act which states that credit card purchases between £100 and £30,000 are insured by the card issuing companies.
Until this decision, the application of S75 to overseas credit card purchases was uncertain. In their Judgment, the Law Lords stated that the 1974 Act gave no indication that there was any territorial limitation on the banks’ obligations.

The decision is good news for consumers but not so good for the banks.
Anyone wanting advice in this area including on the changes also made by the Consumer Protection Act 2006 should contact Iwan on 01494 521301.