Yet again we find ourselves writing about credit card companies...
...but this time its good news!
Credit card firms have been told by the House of Lords they must refund people who buy goods and services abroad that are undelivered or damaged.
The law lords rejected an appeal by Lloyds TSB and Tesco Personal Finance, who argued that protection given under the Consumer Credit Act was only intended to apply to purchases made in the UK. Section 75 of the act says credit card purchases between £100 and £30,000 are insured by the card issuing companies.
Five law lords said section 75 of the act, which makes card providers jointly liable with retailers for reimbursing a consumer should there be a problem with a purchase, also covered any foreign transactions.
This is good news as it means that if we shop online, by phone, on holiday or with a foreign supplier visiting the UK, we are protected for any purchase we make worth between £100 and £30,000 paid for with our card.
Hurrah!
Lord Hope of Craighead said that there was nothing in the act to say foreign purchases were not covered, and they were not included in the list of transactions to which section 75 didn't apply.
The ruling comes after a very long legal process that was started back in June 2003 by the Office of Fair Trading (OFT) to clarify the issue.
The case was taken to the House of Lords by Lloyds TSB and Tesco Personal Finance, which is part of Royal Bank of Scotland. In November 2004, the companies won a high court battle against the OFT, which said they should not have to insure items bought overseas. Much later, however, the Court of Appeal found in the OFT's favour.
John Fingleton, the OFT's chief executive, said: "We are pleased that the House of Lords has resolved the issue, and particularly happy that it has been resolved in a way that gives greater protection to consumers."
The banks responded to the Law Lords' decision with disappointment, but not surprise. (funny that)
"At long last we have clarity," said Sandra Quinn of the card services organisation Apacs.
"The banks now know where they stand and there is no doubt it is good for consumers."
She pointed out, though, that the banks were not concerned so much with small-ticket items that failed to be delivered.
She argued that the main problem for banks was any consequential loss; for instance, being liable for all costs in the US that might arise out of a crash in a car hired with a credit card payment.
Oh dear, that must mean they are worried about how many millions they might have to cough up if some American sues them?!
The consumer group Which? said it was a "positive ruling" that would allow consumers to "shop with greater confidence".
Martyn Hocking, editor of Which? Money, said: "Foreign travel and the internet have opened up huge new markets to consumers and the level of cover they receive when purchasing items with their UK credit card should not be restricted geographically.
"With most credit card companies, consumers already pay a charge each time they use a credit card abroad; the least they can expect is the same level of protection as they enjoy at home."
So, it's a victory for consumers against the credit card companies and a vital one. It will give many of us that extra peace of mind when we use our card abroad.
And that is something to feel good about it isn't it?
10 of the best money saving sites