Do I have to give a refund if customer hasn't paid in full?

JennieS

Yes, I think so. Will talk to her more and take it from there. But essentially will give it back.

I was never going to keep it if it was unlawful, just wanted to know where I stood legally.

Thanks again for all your help.

ni-james

s_b wrote: »

It would appear that JennieS the OP has negotiated credit terms
Now if she doesnt have a consumer credit licence to do credit she could go to prison
She doesnt mention she has because if she had then terms and conditions would be on the agreement
Leg stand on comes to mind

You don't need a consumer credit license if its less than 4 instalments.

halibut2209

Plus surely it's only credit if the goods are given before payment. I pay in instalments for my daughter's upcoming school trip to France. Pretty sure the school doesn't have a CCL

Googlewhacker

s_b wrote: »

It would appear that JennieS the OP has negotiated credit terms
Now if she doesnt have a consumer credit licence to do credit she could go to prison
She doesnt mention she has because if she had then terms and conditions would be on the agreement
Leg stand on comes to mind

Yeah but she won't goto Prison will she, a bit scaremongering by yourself.

s_b

maybe not
but it keeps people on their toes:)

ive not heard of this 4 payments and you dont need a licence though,i think its an old wives tail,

ni-james

s_b wrote: »

maybe not
but it keeps people on their toes:)

ive not heard of this 4 payments and you dont need a licence though,i think its an old wives tail,

It's in the Office of Fair Tradings guide to consumer credit licensing, so not an old wives tail and comes direct from the horses mouth. There are a few excemptions from needing a credit license, and 4 payments within 12 months is one of them.

s_b

ni-james wrote: »

It's in the Office of Fair Tradings guide to consumer credit licensing, so not an old wives tail and comes direct from the horses mouth. There are a few excemptions from needing a credit license, and 4 payments within 12 months is one of them.

thank you..........

akitabow

I thought a credit licence was only required if charging interest on a fixed amount? or providing items prior to paying for them I can personally see how £300 may have occured in costs if for example the seller charged £40 per missed payment and an admin charge (like most companies that except installed payments)or a storage fee for the item, also take into account the items price deminishing over the period of time. Does this money paid not act in a way as a deposit on goods in which case it is perfectly fine to be non refundable in leu of covering reasonable costs as mentioned above. I believe it may be fairer to state that you are willing to offer a good will gesture of providing vouchers to spend on your site upto the value of the amount paid - that way you are not loosing any money atall and are free to sell the item as standard.

fthl

http://www.oft.gov.uk/shared_oft/business_leaflets/credit_licences/oft147.pdf

"You will not need a licence if you just accept credit cards issued by someone else. Other activities for which you are unlikely to need a licence include allowing customers to pay their bills in four or fewer instalments within a year beginning on the date of the agreement."

mo786uk

You need a credit licence if you offer credit, are a broker, offer debt advice, debt adjusting services or debt collection services.

Credit is defined as 'financial accomodation' and it doesn't matter if there is no interest - but there are some exemptions as pointed out. Also you dont need a licence if you only offer credit now and again (I THINK!).

Once you start getting into the realms of offering credit there are a significant number of rules to follow.