The payments industry welcomes the clarity that the House of Lords decision gives on Section 75 of the Consumer Credit Act. This has been a long time coming. The law which was not originally designed to cover our use of credit cards, or the way we use them today, has always been less than clear.

Sandra Quinn, APACS Director of Corporate Communications, said:

“We welcome the clarification today's ruling brings as this is something we’ve been seeking for a number of years. From a customer’s point of view, this decision means no change as card companies had been meeting valid overseas claims anyway. Clearly the card industry will need to consider the implications of today’s ruling for their individual businesses."

ENDS

For further information contact the APACS Information Office:
T: 0870 420 3208 E: apacs@fourcommunications.com

Notes to editors:

APACS is the trade body that gives banks, building societies and card issuers a forum where they can work together on non-competitive issues. In a nutshell we help manage the way that businesses and individuals in the UK move their money around - this covers cash, credit and debit cards, cheques and automated payments such as direct debits, salary payments and online/phone transactions. We also champion the fight against banking fraud and are the people who have been working to give consumers greater card fraud protection by introducing chip and PIN. Twice a year we publish figures on banking fraud losses.

· Today's announcement confirms Section 75 protection will cover purchases on credit cards at home or abroad regardless of the type of transaction.

· Customers are reminded that despite the enormous benefit section 75 provides it has limitations which they should be aware of:
- it is no substitute for medical or travel insurance;
- it will normally be in your interest to seek recompense from the supplier first, as it will usually take longer to provide the necessary information and obtain recompense from your card issuer;
- it is for ticket price goods between £100 and £30,000.

· Some debit card companies who provide section 75 type cover on an ex gratia basis are not affected by today's ruling but they may decide to continue offering it. Customers are urged to check their terms and conditions.

· Section 75 protection is not enjoyed by customers in most other parts of the world. Few other customers around the world enjoy such benefits.