............Shock rethink may end up leaving shoppers defenceless

This month marks the 50th anniversary of the first credit card in the UK. The protection they offer to customers is enshrined in law. But now Laura Shannon exposes a hidden threat to one of the most powerful consumer rights that shoppers have in their financial armoury.

A major review of a 42-year-old law poses a significant threat to shoppers’ rights of redress when they pay with plastic.
The outcome could spell disaster for millions of consumers who rely on credit cards to pay for anything from flights to TVs – only to find they have been sold a pup. Nearly 34million Britons have a credit card – spending a combined £150billion a year. Many do so because of the guarantee they have when paying this way. Such protection comes under section 75 of the Consumer Credit Act 1974. But City regulator the Financial Conduct Authority is now tasked with reviewing this safeguard, and consumer groups fear it will be weakened or eradicated entirely.

WHY THE REVIEW

Some 82 sections of the Act were abolished and replaced with more up-to-date rules in 2014, when the FCA took over responsibility for consumer credit markets from the Office of Fair Trading. But 167 other parts, including section 75, were left alone. Now these too are at risk of being ‘modified, updated or replaced by rules or guidance’, as stated in FCA documents. The aim of the review is to ‘simplify the regime’ and ensure consumers continue to be protected ‘whilst not placing disproportionate burdens on firms’....Read more here