Credit card law should apply to all plastic
Consumer Credit Act only applies to credit, not debit cards
By UK CreditCards.com
Under the terms of the Consumer Credit Act, credit card payments can be claimed back from the card provider money, if money is lost in this way.
This is not the case for debit card payments.
The legislation protecting credit card payments from breaches of contract should be extended to debit cards, Consumer Focus has said in a new report.
The organisation pointed out that debit card users are comparatively more exposed when they pre-pay for goods, only to have them undelivered when the vendor goes bankrupt.
Steve Brooker, markets expert at Consumer Focus, said: "Consumers are losing out in the fight to reclaim money from bankrupt businesses. And the problem looks set to worsen given the dramatic rise in companies going under this year."
Figures from the group show that the typical loss for the people who had previously lost money through prepayments came to around £242 each.
In all, around one in 10 were found to have previously suffered losses of this kind, with around half of this group finding themselves unable to get their money back.
Published: 10 August 2009
- Industry responds to FCA's proposal on persistent credit card debt – Here's what industry experts have to say about the FCA's proposal to help credit card consumers in "consistent debt" ...
- Open banking FAQs answered – What is the new "open banking" initiative, how will it work and how will it benefit you? ...
- FAQs on FCA proposal for helping consumers with persistent credit card debt – The FCA is suggesting new rules for credit card companies to help those with "persistent debt". Here's what you need to know ...