The Office of Fair Trading has imposed requirements on Citifinancial Europe plc (Citi) after its terms and conditions wrongly claimed it did not share joint liability for overseas credit card transactions. Citi financial back many 'branded credit cards' such as Audi and Shell credit cards. Under the requirements Citi will invite those consumers who feel they may have been misled, and think they have a claim, to contact them.

Under Section 75 of the Consumer Credit Act 1974, credit card issuers are individually and jointly liable with credit card brand suppliers if a consumer has a valid claim against the credit card brand supplier for misrepresentation or breach of contract.

Following an investigation, the OFT found that up until 1 December 2008, Citi had expressly stated in the terms and conditions of several of its credit cards that use of the cards abroad would not be covered by the provisions of section 75. This has been legally incorrect since 22 March 2006 when the Court of Appeal gave its judgment, subsequently upheld by the House of Lords, that section 75 did apply to overseas transactions.

The OFT raised its concerns with Citi and confirmed it intended to impose requirements. Citi acknowledged the problem and, as provided for under the Consumer Credit Act 1974, made a proposal to address the OFT's concerns.

Although the Court of Appeal made its decision on the application of section 75 to foreign transactions on 22 March 2006, this will then have applied to any valid claim against Citi existing at that date.

Source: www.oft.gov.uk

DebtWizard Comment

Section 75 provides important protection for consumers who use their credit cards either here in the UK or abroad. It is difficult to know how many how people have suffered as a result of this mis-leading exclusion.

However it is good to see that Citi have moved quickly to rectify their mistake.

For the record the credit cards concerned are;

• Citicard (Platinum Visa, Platinum Mastercard and Visa Gold)
• Citicard Visa Classic
• Ultima
• AAdvantage Visa
• Private Bank
• Audi Mastercard
• Shell Mastercard
• Easyjet Mastercard
• Bmibaby Mastercard

If you are a past customer and have subsequently moved address and feel you may have a valid claim then contact:

Tina Fisher
Transaction Services
Citifinancial Europe plc
Riveride Road
Pride Park
Derby DE99 3GG

Tel: 01332 335 857