How Does my Credit Card Protect me?

Posted by Peter Brady on Mon 28th August 2006 at 07:00 AM, Filed in Credit Tips

Credit cards have long offered you a little more protection than your average debit card - but why is this?

Quite simply Section 75 of the Consumer Credit Act is the statutory instrument that specifically gives you added protection when paying with a credit card. Under the law you can make purchases between £100 and £30,000 on a credit card and claim from the credit company if something goes awry. Pre paid deposits on your credit card can even entitle you to a refund of the entire cost of the goods from the credit card company. This offers unrivalled protection against goods failing to arrive, damaged goods and non functioning goods.

In essence, the Credit Card company is compelled to act as a protective buffer, should the supplier not fulfil their side of the bargain. This provides important protection/extra comfort when buying significant purchases like holidays or cars.

This entry has been viewed 874 times.

READER COMMENTS:

No comments yet.