Interest Free Credit / Administration

anotherpaul_2

Hi. Could someone clear this up for me, since I'm not sure what the situtation would be.

I'm thinking about buying a sofa, probably on interst free credit. What happens if the shop goes into administration between my signing the credit agreement and them delivering the goods? Is this covered by the CCA section 75 rules or can the finance company continue to expect payment?

Rafter

Paul,

As with credit card (or visa debit card) the finance company is jointly liable for delivery of the goods so you are protected.

Just make sure the credit really is free and that there is no settlement charges. Also recognise that interest free credit usually means paying over the odds for the sofa in the first place - you might find that the discount for paying up front is greater than the interest bill if you put it on a 0% credit card for 12 months?

R.

anotherpaul_2

Thanks Rafter. It's good to know that I would be protected.

Yes, I was planning to see what price they would do without the credit too. I suspect I could pay it off over 6 months anyway (or we might just save up), depending on how the options compare.