Credit card firms that are guiding people towards retailers when making insurance claims are misleading them, one expert has said.
Senior researcher Martyn Saville at consumer help agency Which? said that customers have an equal right to demand a payout from suppliers or credit card issuers.
He said: “Because you’ve got a choice of going to the retailer or going to the credit card companies, a lot of credit card companies seem to be pushing people towards the retailer route.”
However, section 75 of the Consumer Credit Act states they are wrong to do so, Mr Saville added.
Users should ensure they know their rights and not allow companies any “wriggle room”, he remarked.
The number of complaints against credit card providers has increased by 50 per cent in the last twelve months, according to the Financial Ombudsman Service (FOS).
This could be due to a number of retailers becoming bankrupt, leading to more customers attempting to recover money from lenders.
By Francis Finch