What protection have you got when purchasing with a credit card?
In the reports of holiday companies going bust, many state that you have more protection if you buy with a credit card. What protection do you get? The reports read as though you get your money back if the company you purchased from goes bust – but how would that be possible? Surely the credit card company shouldn’t have to pay instead?
Thanks very much for your help in advance! Kat
June 4th, 2010 at 11:09 am
If you do not get the merchandise before the BK then you could dispute it with your CC company. Depending on the CC you have all kinds of protections against fraudulent use, defective merchandise, and companies that simply will not respond to your complaints.
June 4th, 2010 at 12:01 pm
Some credit cards have different types of protection offered with them. The best thing you can do is call your credit card company and ask them what sort of protection they offer you with their card.
June 4th, 2010 at 12:54 pm
You are protected under section 75 of the consumer credit act. For a credit card company to be liable, the cash price of the goods or service must be over £100 and under £30,000 and there must be a claim for breach of contract (or misrepresentation) against the supplier. If these requirements are satisfied, you then have a claim against the supplier and/or the credit card company.