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OFT to appeal High Court ruling on section 75

214/04    21 December 2004

The OFT is to appeal the ruling by the High Court of 12 November that the consumer protection given by section 75 of the Consumer Credit Act 1974 does not generally apply to overseas transactions.

Section 75 provides that for credit purchases with a cash price above £100 and not more than £30,000 the consumer is entitled to claim from the lender if things go wrong – e.g. if the supplier breaches the contract or if there was misrepresentation.

The application of section 75 to purchases made overseas has long been uncertain. The OFT sought to resolve the issue by way of a Court declaration (see press release 186/04). It was opposed by Lloyds TSB, Tesco Personal Finance (part of the Royal Bank of Scotland Group) and American Express Services Group Limited.

The OFT will now appeal to the Court of Appeal on the ruling by High Court.

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