DSG and buying on credit card

luke123456

Hi guys

I had a query I read on the post here on buying TV's that it may be safer to purchase a TV from DSG using a credit card. Could I ask why that is, since if they do shut down then what would happen to you, what rights do you get?

Thanks very muchh

Steve_xx

If you buy it using a credit card then you are protected under the Consumer Credit Act. Essentially, this means that the credit card company has a responsibility to you. So then, if DSG was to fold before you got your kit, then the credit card company would stand the loss, if the amount was in excess of £100.

See here forre further detail:

http://www.bbc.co.uk/consumer/guides_to/credit_liability.shtml

luke123456

Ok thanks Steve. So that is the only protection you would get...what if it went faulty within the forst year but the shop closed down, would you go to the manufacturer and not credit card..?

Any other benefits really?? is what I mean.

Thanks

Princess_Coupon

Steve_xx wrote: »

If you buy it using a credit card then you are protected under the Consumer Credit Act. Essentially, this means that the credit card company has a responsibility to you. So then, if DSG was to fold before you got your kit, then the credit card company would stand the loss, if the amount was in excess of £100.

Does this also apply with AMEX?

Steve_xx

I think that the credit card company would still be liable if it went faulty.

Some years back I went to a garage to have the brakes renewed on my car. The new brakes squealed and I took it back to the garage. I took it back yet again and it still wan't cured. So I got in touch with the credit card company and told them that as I had paid using their credit card that they were liable and that I wanted them to refund my money. The sent me the most stupid letter imagineable and really it didn't make much sense to me, except for the fact that they weren't going to cough up. So I wrote again and I told them that they were liable and that I wanted my money refunding. They sent me anohter letter agreeing to the refund and it appeared on my next statement.

Steve_xx

Princess_Coupon wrote: »

Does this also apply with AMEX?

It will do if when you apply for it you tick the option for your card to be regulated by the Consumer Credit Act.

Steve_xx

Princess_Coupon wrote: »

Does this also apply with AMEX?

I apologise in that I have misinformed you. American Express and Diners Club are not covered by the Act.


One advantage of paying for goods and/or services with a credit card, such as Access, Visa or MasterCard, is that if there's a problem the credit card company may be liable to the same extent as the supplier (Section 75 of the Consumer Credit Act 1974). Consequently, if you're entitled to compensation, you can withhold an appropriate sum when you come to pay off your next credit card account.
Obviously, this is a far easier way of recovering compensation than suing the supplier for it. Note, however, that certain cards (such as Diner's Club and American Express) aren't covered by Section 75 because they fall outside the Consumer Credit Act 1974.

Floop1977

Is that true? I cannot see anything about American Express being an exception to Section 75 on Martin's Section 75 page, here:

http://www.moneysavingexpert.com/shopping/section75-protect-your-purchases#exceptions

I have been working on the understanding that I am protected by Section 75 and using my Amex card, but if it turns out that I don't get the same protection from it as I would from using a Mastercard or Visa, then that I will certainly think again.

Steve_xx

Just because Martin hasn't mentioned it, it doesn't mean that it may not be so. Amex do offer some protection, but it is somewhat limited, as per below:



Get in touch if you're having trouble being heard. American Express® gives Personal Cardmembers a helping hand whenever you need support.
90 days’ Purchase Protection Benefit*

We know how frustrating it is to buy something and find that, when you get it home, it gets damaged. Your American Express Personal Card gives you 90 day protection on eligible new purchases. So if your new coat has lost a button or your new carpet is stained, our Purchase Protection Benefit team will arrange repair or replacement for you. Help with purchases of goods or services that don’t live up to the sales promise


We'll help you with a complaint if something you've bought is not as described.
90 days’ Refund Protection Benefit*

Should any UK retailer refuse to give you your money back on eligible items, we’ll refund the purchase price.

Princess_Coupon

Everyone always says buy on your credit card and your covered, AMEX is also recomended alot due to the cashback I imagine alot of people use AMEX believing they are fully protected.

Floop1977

Well I've researched it a bit more now and it seems to me that you are fully covered when paying on an American Express credit card.

The confusion may have arisen because there is such a thing as an American Express Charge Card, which you must pay off in full at the end of every month, and this does not qualify as a credit card and as such does not give the holder Section 75 protection.

However, my Amex is most definitely a credit card and therefore comes under the Section 75 protection.

http://www.oft.gov.uk/news/press/2007/139-07

http://www.fool.co.uk/news/your-money/credit-cards/2006/03/24/two-crucial-credit-card-changes.aspx

http://www.credit-card-comparison-online.co.uk/articles/section-75-purchase-protection-cover.html

http://www.guardian.co.uk/money/2006/feb/02/yourrights.legal3