What is a consumer credit claim?

A recent investment fraud involving the use of software providing deceptive indications as to profits made has brought prominence, albeit in an unwelcome fashion, to the Consumer Credit Act 1974 and the capacity it affords to bring claims against creditors rather than suppliers.

Section 75 of the act allows anyone who finds that something has gone wrong with an order made on their credit card to make a very distinct type of claim. Ordinarily if you enter into a contract with another party and they don’t deliver what you’ve ordered and paid for you will take action against them to either force them to deliver your product, or else recover the money you’ve given them.

In this day and age where you can buy a product from anywhere in the world with an internet connection and a decent postal service, it raises the question of what happens if you don’t get what you ordered. Do you go online and find a law firm in France, America or a country on the other side of the world?

No. You go after your bank or credit card company. The Consumer Credit Act puts banks and credit card companies to a very broad degree of liability. As the creditor to your contract (as buyer) with the supplier, the bank or credit card company becomes jointly and severally liable in the event that the contract is not performed.

And the most interesting aspect of this, unless you happen to be a bank or credit card company that is, is that this liability extends to products bought anywhere in the world. The House of Lords, now known as the Supreme Court, ruled in 2008 that, so long as both the buyer and the bank were based in the UK, that it did not matter where the supplier was. A claim can still be brought.

So, if you should find yourself looking forlornly at the postman every day and the supplier does not help you, feel free to give our experienced civil litigation team at Askews a call on 02476 231000.