When to pay off.

Big_Penny

Hello all.
I recently used a credit card(First Direct)to pay a deposit,£1,100.
I have the money in my account to clear the debt.If I pay off today,am I still covered with the cards' insurance if anything goes wrong,and how long for? Thank you in advance.

Milarky

(This is a 'Section 75' question, yes?)

I believe the answer is: "Yes - you are still covered"...

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

It's not explicit in the excerpt above whether this entitles you to a cash sum after repayment of the orignal £1,100 to first direct in the event of a subsequent failure of your service agreement.

I'd guess that the way it works would be:

- you 'buy' something (£100 - £30,000 value) with a credit card

- this is either not supplied at all or is supplied 'not as agreed'

- this 'breach' gives rise to a liability (to make good your position finanically if necessary) on the part of BOTH supplier and arranger of the finance (in this case First direct)

- this liability (and your rights under it) survive any repayment of the original debt.

But another way of thinking about this is that you couldn't claim any money 'back' from First Direct (or other card provider) that you hadn't paid them! A credit card creates a debt on your part to FD and a balancing liability on their part

HTH

jonesMUFCforever

Yes.
Depending on what the deposit is for there is no time limit as such.
It is not insurance for anything going wrong but a protection against the retailer refusing or unable to carry out its obligations under the Consumer Credit Act.

Big_Penny

Thank you Milarky,that does help.I also have something in my"favourites"that I didn't earlier.

Big_Penny

ejones999 thanks,the deposit was for a kitchen.
I do feel more at ease,now.