Credit card firms "wrong" to reject insurance claims

Credit card providers are "wrong" to reject insurance claims made through them by consumers.

This is according to Martyn Saville, a senior researcher at consumer group Which?, who pointed out that under the terms of the law, such companies share equal liability for claims with vendors.

He made his comments in the wake of figures produced by the Financial Ombudsman Service which suggested that complaints against credit card providers over payment insurance have risen by 50 per cent over the past year.

The grievances concern section 75 of the Consumer Credit Act, which stipulates that it is a legal requirement for such companies to cover the purchase of goods between £100 and £30,000.

Mr Saville said: "You've got a choice between going to a retailer and going to a credit card company. Section 75 is really clear; it's black and white, you've got the choice.

"If you choose to go to the credit card company they shouldn't be rejecting it, they should be honouring [the consumer's] legal right."
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24/06/2009 16:00

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