Credit cards used as insurance, say Saga

Mon, 09 Mar 2009

A new survey by Saga reports that 46 per cent of the population is taking advantage of a law in order to ensure expensive items are paid for if the seller goes under.

The law, Section 75 of the 1974 Consumer Credit Act, says that credit card providers are equally as liable for products costing between £100 and £30,000 as the suppliers of the purchased product.

Customers are making the most of this, insuring that items which may not be delivered or are faulty will still be paid for if the company selling them goes bankrupt .

Andrew Goodsell, chief executive of Saga Group, said: "The credit crunch has affected people in a number of ways and as a result have become more wary, choosing brands they trust and using credit cards as they provide added protection in uncertain times."

The research also found that 32 per cent of British credit card owners have used them to get cash back rewards.

Customers of airline ATOL who expected to be refunded after thousands were stranded abroad and more had to make other holiday arrangements have used the law to get their money back off credit card suppliers .
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.