Section75-Protect-your-purchases#deposit

goodbourne

Hi everyone - new to forum.
Need advice from the forum about protection if you pay a deposit on an item on a credit card and then pay the balance by some other means.
There was advice given on this by moneysupermarket/shopping with the url in the title to this posting (as a newbie not allowed to include full links).
Looking at that advice its not clear to me it covers the following. Our circumstances:
We
1. have put down a £2000 deposit on a van to convert to a camper
2. if we then pay the balance of £20000 by cheque because (a) the conversion company will give us a discount if we pay in advance, and (b) company does not want to incur credit card charges on our payment and
3. the company goes bust in the 4 months it takes them to do the conversion then
4. are we legally covered for the whole amount by our credit card company (which has nothing to do with the bank we will write the cheque on??

If there is anyone out there who really knows the answer to this then a reply would be much appreciated.

4743hudsonj

goodbourne wrote: »

Hi everyone - new to forum.
Need advice from the forum about protection if you pay a deposit on an item on a credit card and then pay the balance by some other means.
There was advice given on this by moneysupermarket/shopping with the url in the title to this posting (as a newbie not allowed to include full links).
Looking at that advice its not clear to me it covers the following. Our circumstances:
We
1. have put down a £2000 deposit on a van to convert to a camper
2. if we then pay the balance of £20000 by cheque because (a) the conversion company will give us a discount if we pay in advance, and (b) company does not want to incur credit card charges on our payment and
3. the company goes bust in the 4 months it takes them to do the conversion then
4. are we legally covered for the whole amount by our credit card company (which has nothing to do with the bank we will write the cheque on??

If there is anyone out there who really knows the answer to this then a reply would be much appreciated.

Well you dont specifically mention it but i assume the £2000 deposit was paid via a credit card?

If so, section 75 of the Consumer Credit Act does indeed cover you for the WHOLE amount no matter how you paid for the rest.

In fact, you could have paid just £1 on CC and they would still be jointly and severably liable for the whole amount.

moonrakerz

goodbourne wrote: »

If there is anyone out there who really knows the answer to this then a reply would be much appreciated.

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/31/creditcards-31.htm

goodbourne

Thats encouraging but Visa tell me that they will only cover what they financed as a deposit, not the capital that we will put in from our bank account. They are adamant about that. Do you have an exact reference from the CCA which addresses this point?

moonrakerz

goodbourne wrote: »

. Do you have an exact reference from the CCA which addresses this point?

http://www.financial-ombudsman.org.u...itcards-31.htm

Section 75 of the Consumer Credit Act 1974 is all you need to quote - that says they are liable.