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New legislation may give consumers the right to a refund on excessive charges incurred whilst abroad.

From November 1st consumers will be protected as part of the EU’s Payment Services Directive, which states that anyone who receives a credit card bill that “exceeds the amount the payer could reasonably have expected in all the circumstances”, has eight weeks in which to seek a refund.

The changes proposed could apply to transactions where deposits are required and the final amount is not specified at the first point of payment, such as car hire and hotel rooms.

“Banks are going to be a bit nervous about it but they will have to justify any refusal. It will be interesting to see how they handle it,” said the UK Payments Administration, which regulates payment companies.

The 140-page document, produced by the Financial Services Authority detailing the EU’s guidelines for consumer protection, is currently being investigated by consumer group Which? for any loopholes that might limit a credit card user’s access to refunds.

“We are combing through the document to see how the changes will work and how they will affect consumers. Our main concern is making sure that they are getting a good deal,” said Which?