Brussels wants to wipe out a safety net enjoyed by thousands of UK consumers.
Under moves to harmonise credit protection laws, the European Commission wants to end the current protection for those who pay for goods and services with their credit card.
The Department of Trade and Industry (DTI) has stated that it will fight the move contained in the European Consumer Credit draft directive.
The European Commission wants to remove section 75 of the UK Credit Card Act.
The UK is the only European Union member state with such a rule, which gives people the right to their money back from credit card companies if they use their card to buy something which turns out to be faulty.
It only applies to goods worth more than £100 and less than £30,000, and it does not apply to debit cards, charge cards, bank loans or certain shop cards.
The new Consumer Credit directive, currently in draft form, is a bid to harmonise consumer credit laws.
It aims to do this by 'modernising' the current 1987 European Consumer Credit directive with new proposals aimed at ensuring that consumers gain confidence to enjoy the benefits of fair competition, cross-border and domestic, on a genuinely single market for credit.
But it seems that section 75 has no place under European thinking.
This right has proved invaluable for many consumers in the past, including readers of vnunet.com's sister title Computeractive.
The IT industry has been badly hit by a downturn in sales, which has seen both small and large computer resellers and manufacturers go bust.
Without the backing of section 75, many people would be out of pocket to the tune of hundreds and sometimes thousands of pounds.
The Consumers' Association has called section 75 "vital consumer protection" because, should a retailer go out of business or refuse a refund, it gives the consumer another door to knock on.
"We will be fighting hard to make sure that it isn't removed from the new directive," said a representative of the leading Consumers organisation.
A DTI representative told vnunet.com that the government aims to persuade other member states to adopt the protection given to consumers under section 75 rather than remove it.
Instead of diluting the proposal it has this month pushed for credit card providers to extend their policy on section 75 to cover overseas transactions.
"The proposed European Commission directive brings benefits in the creation of a single market, but needs to be backed up with the appropriate high level consumer protection," said the representative.
"We would not support the removal of any existing and valuable UK protection measures, and will be pushing to keep this high standard during negotiations on the text of the directive."
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