this is interesting - from the BBC news site

must admit I use the cc abroad - its cheaper and easier

ains




UK government says holidaymakers can make use of Section 75
A court case could soon decide whether people will be protected when they use their credit card overseas, in a move that would have big implications for UK holidaymakers and internet shoppers.
The Office of Fair Trading (OFT) and two UK banks - one of them Lloyds TSB - are preparing to bring the issue before the courts.

The OFT has long argued that Section 75 of the Consumer Credit Act covers transactions made outside the UK, but some card issuers disagree.

Section 75 includes very important consumer protection measures which give consumers the right to recover various costs from the credit card issuer, effectively underwriting purchases of more than 100.

But banks and card issuers are concerned about rising costs and, in particular, the prospect of secondary litigation and personal injury claims.

Serious costs

UK banks and card companies are particularly worried they may be liable for secondary costs incurred in accidents caused by UK holidaymakers.

We and to my knowledge virtually every other organisation said we did not agree with that

David Gagie
Lloyds TSB

For example, Lloyds TSB is concerned it could incur huge losses involving cardholders who have hired cars abroad, using their credit cards, and had accidents.

Other concerns include worries about the growing market in cosmetic surgery tourism to countries like South Africa.

David Gagie, director for credit cards at Lloyds TSB, told BBC News Online it was not an insurance service and court action would clarify the issue.

"About 18 months ago, the OFT indicated that they wanted the industry to formally agree that the OFT's interpretation that international transactions were captured [in the rules] was correct.

"We - and to my knowledge virtually every other organisation - said we did not agree with that."

Under threat

The future of Section 75 for transactions made in the UK - not only abroad - is also under threat, because of a draft European consumer credit directive.

The directive will eventually replace part of UK consumer credit law, and could be the death-knell of Section 75 in the UK.

The Department of Trade and Industry told BBC News Online it was working hard to lobby member states, and that it would be backing the OFT's action.

A spokesman said it had always taken a view that Section 75 applied to overseas transactions.