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

Flyboy152

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'.

What other alternatives to card payments do they offer?

Flyboy152

unholyangel wrote: »

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.

But, in reality, the creditor and supplier is hardly ever the same entity; even if a credit provider also sells cars (sofas or widgets). Most often, in these circumstances, the finance company, or car supplier, are separate subsidiaries of a holding company. If they were the same entity, the accounting costs and efforts would outweigh any benefit the holding company could recover.

paddyrg

How about asking a trusted third party to act as escrow? A lawyer/accountacy locally?

pinkteapot

Well, the first quote was from Hammonds - I had liked the product but they talked themselves out of the job through a truly atrocious sales technique. And they charged 1.5% for credit card payments.

Yesterday we had Rhino Bedrooms round - a local company (Essex/Kent). World of difference! Better design which made better use of our space. AND, they know people want S75 protection so they let you pay the deposit on credit card with no charge made! That's customer service.

There is a charge if we pay the balance on CC but we won't do that, as the balance isn't even due until installation is complete (whereas Hammonds wanted most of the payment beforehand and a small amount after the event).

visidigi

never underestimate the power of local.

Glad to hear you got it sorted - hopefully fitting etc all goes smoothly for you

Googlies_2

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'.

A Debit card can also be used to receive the same protection, to use this method make sure the payment takes your account into an interest bearing overdraft.