Citi credit card customers may have been 'misled' on its foreign transaction protection, it has been revealed.

Following an investigation of Citi's terms and conditions, according to the Office of Fair Trading (OFT), CitiFinancial Europe’s (Citi) terms and conditions had been misleading its customers into believing that it did not share joint responsibility for credit card purchases made overseas.

The OFT found that the firm stated that foreign credit card use will not be covered under Section 75 of the Consumer Credit Act 1974.

However, following a Court of Appeal, Section 75 was upheld by the House of Lords allowing it to apply to transactions made overseas since March 22nd 2006.

Ray Watson, OFT director of credit stated that Section 75 ensures customers who use the credit cards overseas are protected.

He said: "While in practice Citi has been honouring claims for overseas use of its cards, some of its customers may have been misled into not claiming by its stated exclusion of liability for overseas transactions."

Citi will now be required to inform those who may have been misled, some of whom may be entitled to file a claim against the firm.