The Benefits of Purchase Protection

Written on July 14, 2011 – 9:18 pm | by admin

There are many types of credit card, such as interest free credit cards or more specifically 0% balance transfer credit cards andthere are also cards that donate money to charity every time you use them. One thing they all have in common, however, is what is known as purchase protection. This article is designed to take you through what purchase protection actually is as well as some of the benefits associated with it. Read on for more information…

The first thing to look at is what purchase protection is. It is offered under Section 75 of the 1974 Consumer Credit Act and it is essentially a form of protection for credit card customers. Purchase protection means that if you make a purchase on your credit card but you don’t actually receive that purchase because the company goes bankrupt prior to you receiving it, or if the product is faulty in some way, you will be eligible to claim a refund on the money from your credit card company. This is limited to purchases valued between ?100 and ?30,000.

There are several advantages to this. One of the main ones is that it means you are not liable for the problems of other companies in the event of them getting into financial difficulty before you are in possession of your purchase. If you used a debit card to buy something and the same thing happened, it would be unlikely that you could claim the money back as you would be able to on a credit card. Purchase protection essentially means that you don’t lose out, but it is worth remembering the value limit placed on it.

Another thing to bear in mind with all types of credit card, from interest free credit cards to 0% balance transfer credit cards, is that if you are the victim of fraud you won’t have to pay for the fraudsters purchases made on your card, either, which is another benefit for consumers.

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