Court of Appeal increases UK consumer protection for overseas credit purchases

摘要

In a ruling published on 22 March 2006 the Court of Appeal has effectively increased the protection available to UK consumers who use credit, as opposed to debit or charge cards to purchase goods from a foreign supplier for delivery into the UK. At issue is the interpretation of section 75 of the Consumer Credit Act 1974 (CCA) to foreign credit card transactions. This provision establishes the principle of 'connected lender liability' following the recommendations of the Crowther Committee in 1971 that, in cases where a lender provides credit for the purchase of goods or services pursuant to arrangements between himself and the supplier, both parties might be considered, in commercial terms, to be acting as "joint venturers" since the arrangements operated "to their mutual benefit in the promotion of their businesses". As a result the Committee suggested that a consumer (debtor) who obtained shoddy or faulty goods as a result of a credit transaction should have a remedy against the lender as well. This recommendation was ultimately acted upon by Parliament in section 75(1) CCA. Its aim was to provide legal regulation that was fair to lenders while providing a reasonable degree of protection to consumers. The provision stated that if a card user had a claim against the supplier for a misrepresentation or breach of contract, with a cash value between £100 and £30,000 (including any VAT), and not more than £25,000 of credit advanced, both supplier and creditor would be jointly and severally liable.