Changes to card laws called for by group

07/08/2009

People who fail to get prepaid goods and services delivered by retailers should get extra protection, according to Consumer Focus.

The group said that current laws governing credit card payments should be extended to debit cards.

Under the Consumer Credit Act, the former group can claim money back from both their card provider and their retailer if the goods go undelivered.

Consumer Focus revealed that the most common reason for these delivery failures was that the vendor had gone into administration - and the average amount lost was over £240.

In all, ten per cent of customers were found not to have received prepaid goods at some point.

Almost half of this group did not get repaid for these losses.

Steve Brooker, markets expert at Consumer Focus, said: "Consumers are losing out in the fight to reclaim money from bankrupt businesses. And the problem looks set to worsen given the dramatic rise in companies going under this year."

He added: "As with many things during a recession, it's the poorest who will be hit hardest."

Tags; Debt Management and Banking, Young Family Finances, Credit Card Lifestyle, Recent Graduate Debt,

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