Interest Free Option or not

ravenk

Just about to start looking at buying a new sofa and chairs.
Budget £3000 ish ....
The issue is ...
Will the store go bust between us paying/ordering sofa and delivery.
Thus you will say ...pay on your credit card for buyer protection in the case of the company going into administration prior to the goods being delivered.
However a lot of stores are offering 4 years interest free credit and similar deals. Thus I could leave the £3,000 in my bank account and get 3% interest on it.
How do you stand if you took one of these deals and the company went bust before you got your goods ?
I guess I would end up owing £3,000 to the finance company and have no goods ? or would I ?

arcon5

You would have section 75 protection if you entered in to a credit agreement.

You don't even need to pay the whole balance on a credit card either - so long as the item costs >£100 which it does

ravenk

So what your saying is ....

Sofa and chairs costs say £2900.
I pay £300 deposit on my credit card and pay the remainder on interest free credit deal.
If company goes bust (high risk these days) and I don't have goods ...
I can claim for the full sum on my credit card protection
£2900 ...from this pay the credit company offering the deal the £2600 I owe them ?

InsideInsurance

You can claim in full on the credit card or the whoever the provider of the interest free credit is (assuming they are external to the entity that went bust).

S75 is about any credit agreement regulated by the CCA not just credit cards

pka_2

ravenk wrote: »

So what your saying is ....

Sofa and chairs costs say £2900.
I pay £300 deposit on my credit card and pay the remainder on interest free credit deal.
If company goes bust (high risk these days) and I don't have goods ...
I can claim for the full sum on my credit card protection
£2900 ...from this pay the credit company offering the deal the £2600 I owe them ?

Correct me if i'm wrong but i'm pretty sure the credit agreement doesn't start until you recieve the goods. Therefore if no goods then you don't owe the credit company anything. Deposit paid on credit card can be recliamed though

ravenk

Thanks for the replies.

Sign of the times when the biggest concern is will the company go bust before you get your goods.
Especially in the furniture retail sector.

arcon5

A credit agreement begins whatever date is on it.

Paying deposit on credit card and taking out credit on rest will leave you able to seek a remedy from either.

It's a realistic concern but it seems you've sussed the safest way to do it.

wealdroam

pka wrote: »

Deposit paid on credit card can be recliamed though

Even if only the deposit is paid on a credit card, the whole purchase price is protected by Section 75 of The Consumer Credit Act 1974.

Read MSE's article on the subject for further detail.

cardinalbiggles

There is enormous mark-up on furniture, you may be better negotiating the price, they wont legally be able to discount for not taking the interest free credit but if you don't even mention it I bet you can get a fair whack off the price.