For Your Protection and Peace of Mind
All our loans & procedures are approved and qualified by our fully experienced compliance team to ensure they meet our high standards and comply with all current regulatory requirements
 News |
|
Search Categories |
| Archive News |
Complaints against credit card companies 'on the rise'
The number of complaints made against credit card companies over payment insurance has increased by 50 per cent over the last year, the Financial Ombudsman Service (FOS) said.
Consumers have been angered by companies who they believe have not been following section 75 of the consumer credit act, which states that it a legal requirement for credit card companies to cover the purchase of goods between £100 and £30,000.
The increase has been largely attributed to the number of companies going into liquidation in the current climate, with consumers choosing to seek refunds through their card provider rather than the retailer themselves.
Martyn Saville, a senior researcher at consumer group Which?, said that under law credit card companies share equal liability for such claims with vendors and that any attempt by the firms to redirect claims elsewhere are "absolutely wrong".
According to the Financial Services Ombudsman firms will sometimes tell customers that they must first get a court judgment against the supplier. That is wrong. The customer can choose whether to claim against the supplier, the card issuer, or both.