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Credit cards 'offer protection that cash and cheques don't'

Credit cards 'offer protection that cash and cheques don't'

Category: Credit cards

Updated: 31/10/2008
First Published: 09/10/2008

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Consumers have been advised that credit cards can offer protection against some of the effects of the credit crunch.

Financial journalist and creator of Martin Lewis told the Mirror that credit cards companies are obliged to protect items bought by companies.

He notes that under Section 75 of the Consumer Credit Act, goods between the value of £100 and £30,000 are covered.

"So, if there's a problem with the goods or the company goes bust … the credit card company is forced by law to act and give you relevant redress or your cash back," said Mr Lewis.

Consumers wishing to take advantage of the law may wish to carry out a credit card comparison before applying.

Last month analyst Michelle Slade observed that interest rates had risen on reward credit cards offered by several retailers, advising customers to ensure their balance is paid off in full as early as possible.

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