How to protect against company going bust when ordering? - Updated

pinkteapot

Not sure of the best board for this one...

We're looking for a fitted bedroom which is obviously a relatively expensive purchase. Most companies want a deposit payment and then most of the balance a couple of weeks before fitting with only a small final payment after the event.

In this climate, aside from negotiating as small an upfront payment as possible, is there anything we can do to protect ourselves if the company were to go under between ordering and fitting?

crazyguy

credit card payment

Norfolk_Jim

read all about it here
http://www.moneysavingexpert.com/shopping/section75-protect-your-purchases?utm_source=forum&utm_medium=clicks&utm_campaign=resourcebar

pinkteapot

Thanks - I assume this is the only way? Companies we have spoken to so far charge for credit card payments so was hoping to avoid paying by cc if possible. We'll weigh up the card charge as an 'insurance cost'.

visidigi

also consider a local carpenter versus a big chain if you want more flexibility on payments etc - a good geneuine carpenter wont require as much up front in my experience...

Equaliser123

pinkteapot wrote: »

Thanks - I assume this is the only way? Companies we have spoken to so far charge for credit card payments so was hoping to avoid paying by cc if possible. We'll weigh up the card charge as an 'insurance cost'.

Good way of looking at it. Or consider a cashback card to offset the extra cost.

unholyangel

pinkteapot wrote: »

Thanks - I assume this is the only way? Companies we have spoken to so far charge for credit card payments so was hoping to avoid paying by cc if possible. We'll weigh up the card charge as an 'insurance cost'.

You can pay a deposit by credit card .

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

What if I only pay the deposit on the card?

The law's very specific, you get the protection for the whole thing even if you only pay for a part of it on the card, provided what you pay for costs more than £100 (and less than £30,000).

pinkteapot

Thanks both - we have Amex cashback cards (though some suppliers don't accept Amex) and my husband gets Amazon vouchers from his HSBC Mastercard.

Good tip re only paying the deposit on cc!

pmduk

if you use the company's finance, then the finance company becomes equally liable. Useful if you can find a zero finance or buy now pay later deal. specially if you pay before the interest kicks in.

unholyangel

pmduk wrote: »

if yo use the company's finance, then the finance company becomes equally liable. Useful if you can fin a zero finance or buy now payt later deal. specially if you pay before the interest kicks in.

Not always the case, it would depend whether the supplier was also the creditor. From the page i linked above:

Does it apply to other credit?

While the bulk of claims are made to credit card providers, the law also applies to other types of credit agreement (except where the supplier is also the creditor, eg for some car finance).
Personal bank loans specifically for large items do not get Section 75 protection, even though the loan's a regulated agreement. This is because to be covered the finance must be properly linked to an item (known as a Debtor-Creditor-Supplier agreement) so that the finance company can see a clear relationship between the money and the goods.
Paying by credit card is paying directly for goods, meaning the relationship's clear, whereas bank loans, even if ostensibly for a car, could actually be spent on anything.

pmduk

That's why I mentioned the company's finance deal. That establishes the required link. You're right though, getting a bank loan and paying with that would not be sufficient as there is no relationship between the retailer and lender.