Setback for UK credit card users

For people who are travelling overseas please be aware of a recent court ruling that if you make any purchases while abroad you will not be covered by UK payment protection rules.

Normally consumers have the right to claim against the card issuer if a purchase is unsatisfactory, faulty, or the seller refuses to compensate them. This right was opposed in court by Lloyds TSB and American Express. The Office of Fair Trading (OFT) asked the court for an official ruling, as some lenders were refusing to pay out on claims made by consumers.

It was found that some lenders felt it was too expensive to underwrite overseas purchases. This ruling also applies to purchases made on the internet.

Citizens Advice Director of Policy Teresa Perchard said she found the court's decision "disappointing".