If the credit card provider and the bank, which is acting on behalf of the supplier/ Retailer are the same then only the transaction will have effect on only three parties.
Consumer Credit agreements: In Consumer Credit Agreement the creditor provides finance to the debtor for purchase of goods and services and such finance shall be within the specified amount. The credit provided by the creditor to the debtor includes Credit sale and conditional sale such the agreements of bank overdraft and credit card, which are also termed as revolving credit or running account. Under these agreements the debtor purchases the goods and or services from the supplier or wholesaler or retailer etc and the creditor makes the payment for the debtor and such credit the creditor shall fix limit, from time to time. The further classification of these agreements are unrestricted credit agreements and restricted use credit agreements. Bank loans fall in the category of unrestricted credit agreements. ...
Dealer is an Agent of Creditor:
In accordance with Section 56 of the Consumer Credit Agreement a person who makes negotiations of a regulated agreements between the creditor and the debtor is called the agent of creditor, such person includes a dealer in hire-purchase and a retailer who allows the customer to pay through credit card for the goods supplied. This section gives the protection to the consumer by making creditor liable for any breach of contract of sale either due to misrepresentation or due to any reason, and giving liberty to the consumer to sue the creditor for the breach of contract of sale2.
Liability of Creditors in Consumer Credit Agreement:
Section 75 of the Consumer Credit Act 1974 provides that the creditor is liable for the default of the supplier and the debtor has a claim against the creditor similar to that of his claim against the supplier in the Consumer Credit Agreements such as hire-purchase, credit sale and conditional sales. The creditor is jointly and severally liable to the debtor. The consumer who purchases the goods from supplier or wholesaler or a retailer using the credit card has right to claim against credit card issuing company, which provides the credit card to the consumer3.
Therefore the Section 75(1) and Section 56 of the Consumer Credit Act gives the protection to the consumers against the creditor such as the credit card issuing bank for any breach of contract of sale including implied conditions such as fitness and satisfactory quality as explained in the sale of goods act. This section provides to the consumer who makes the payment of the price of goods through the credit card, to claim against the supplier and also the