Credit cards Updated:
Consumers have been urged to protect themselves by purchasing valuable goods with a credit card.
Bridgend County borough council's Trading Standards issued the advice in light of the threat to businesses during the credit crunch.
It noted that should a company cease trading, goods bought using cash or a debit card cannot be refunded.
However, Section 75 of the Consumer Credit Act 1974 offers protection by requiring credit card companies to take responsibility for purchases between £100 and £30,000.
But acting head of Trading Standards Lee Jones recommended being aware of interest rates, explaining: "In some cases, the amount of interest you will have to pay will outweigh the protection, so think about paying off your balance every month to avoid paying interest charges."
Earlier this week American Express suggested buying goods with a reward credit card, as this can generate hundreds of pounds of cashback each year.
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