Many financial providers are failing to properly explain protection shoppers have when something goes wrong with a credit card purchase, consumer group Which? says.

Ten firms were asked about a scenario where a sofa firm had gone bust after a deposit had been paid with a card. Knowledge of section 75 of the Consumer Credit Act - which entitles consumers to a refund - was "poor", they say. Six firms were only able to correctly answer half or less of the inquiries. Which? said it was the third time in three years that it had identified gaps in staff knowledge at credit card providers. Section 75 of the Consumer Credit Act can make credit card providers jointly liable for breaches of contract with a trader when consumers make a card purchase. It means shoppers should not be left out of pocket if an item is faulty, the retailer goes out of business or it does not deliver what it has promised. Consumers are potentially protected for the total value of their purchase - provided the total cost of the item is between £100 and £30,000 - even if they only used a credit card for part of the payment.

£600 sofa

The researchers from Which? phoned the 10 providers with such a situation to put their knowledge to the test. They asked for advice on behalf of a relative who had bought a £600 sofa, with a £60 deposit paid by credit card and the remainder by cheque. Which? awarded half points in cases where advisers gave a vague answer but indicated that a refund might be possible, or where they said they could not give any information without speaking to the cardholder.....Read more here