SECTION 75 OF CONSUMER CREDIT ACT 1974 AND FOREIGN TIMESHARES

That this House notes the use of credit cards to purchase time-share developments abroad and the contention by some banks that these purchases are not covered by section 75 of the Consumer Credit Act 1974 which makes the card issuer a connected lender in a debtor-creditor-supplier agreement; further notes the decision in Lynch v Royal Bank of Scotland conflicts with a report by the Director General of Fair Trading that card issuers should treat consumers on the basis that section 75 applies equally to all credit card transactions regardless of where they take place or the merchant acquirer involved; congratulates those banks which have repaid consumers money lost on foreign time-share schemes; and calls upon the remaining banks particularly the Co-operative Bank to follow this lead without delay in repaying money lost on the Vale Navio development.