The Consumer Credit Act provisions enable an aggrieved consumer buyer to make a claim against the credit card company for any breach of contract or misrepresentation by the retailer or trader, writes Milton Silverman, partner at Streathers LLP law firm.
This, of course, is one of the main reasons why the card providers are so keen to implement their chargeback facility and incorporate this into their terms and conditions (see point 2 in Chargebacks – key facts, page 39). It’s all about protecting themselves.
The reality is that the card providers are in the driving seat and can dictate their own terms and conditions. An aggrieved out-of-pocket merchant – auctioneer or dealer – may have to sue the card provider, for example for breach of their terms and conditions, not a happy prospect for the merchant.