building work- bank transfers

eddddy

soolin wrote: »

I do not want to be one of those people who is back here in a few months time asking how I get my money back as I gave someone 3k and they have called in the receivers.

Yes - I fully understand.

So you don't trust the builder. And perhaps the builder doesn't trust you.

I'm sure builders have stories of people who ask them to do work for them but never pay them - just like you have stories of builders taking peoples money and going bust.

I guess you've got to find a different builder that you trust. Or a builder that trusts you.

CardinalWolsey

What protection do you think that a Debit Card will provide? That won't provide S75 protection, only the option of a chargeback, which is of no use if the company dissolves.Some people are saying that if a builder is not willing to start without being paid a deposit, that is a red flag to them. I would turn this around and suggest that a builder having a request for a deposit refused is likely to see that customer as a red flag to them - are they going to pay for the work being carried out. Builders do normally have lines of credit with their suppliers - 30 days net for payment, for example. However, staged payments are the norm - not necessarily by date but by phase (e.g. walls up, roof on, first fit complete, second fit complete...).

Do your background checks on the builder, take references, actually follow up on the references, agree payment terms and then pay your deposit.

comeandgo

I work in the construction industry and very few companies can take credit cards. Majority of finance is done through bank transfers and you are right, there is not the financial security you get from credit cards.

soolin

eddddy wrote: »

Yes - I fully understand.

So you don't trust the builder. And perhaps the builder doesn't trust you.

I'm sure builders have stories of people who ask them to do work for them but never pay them - just like you have stories of builders taking peoples money and going bust.

I guess you've got to find a different builder that you trust. Or a builder that trusts you.

If a builder ordered a digger and foundation stuff to start my work and I refused to let them in then they know where I live and will have a signed contract they can chase me through the courts with.

A debit card will give me more protection than a bank transfer.

https://www.moneysavingexpert.com/shopping/visa-mastercard-chargeback. See the MSE guide

Chargeback is a little known scheme which gives you a chance of getting your money back from your bank if you bought faulty goods, a service wasn't provided, or the company you bought something from went bust and your goods weren't delivered.

Some possible reasons for claiming a chargeback are:


Company goes into administration – the company you purchased from has gone bust.

LadyDee

soolin wrote: »

This isn't really the right board for this but it doesn't seem to fit anywhere else either.

I have a quote for some building work, I've gone to a company rather than a friend of a friend or someone from the local ads, it's a company I used about 22 years ago and were happy with but I believe the management has now changed hands.

I'm happy with the quote but I asked them where I needed to go to pay the £3000 deposit by card I was told they have no facility to take anything other than a cheque or bank transfer.

I'm a naturally suspicious person and see scams everywhere but the office of this company seemed to suggest that it is normal in their trade for it all to be cash or bank transfers and that I would be making staged payments with only half the balance (a little under £10,000) payable by part way through the build.

Is this normal or am I right to be a bit worried as to why a company has no line of credit with a bank? I'm currently in the process of getting more quotes and have already checked that the new companies take a deposit by Visa debit(so I am protected if company dissolves)

I cant believe that an experienced MSE person of your standing would even contemplate parting with that sort of money other than by credit card.

It might be "normal" for a cash in hand jobber for £50 but certainly not for that sort of money!

You know that you have absolutely no protection if you pay via bank transfer. Bargepole, wouldn't touch, comes to mind.

eddddy

soolin wrote: »

If a builder ordered a digger and foundation stuff to start my work and I refused to let them in then they know where I live and will have a signed contract they can chase me through the courts with.

That's not really a sensible basis for doing business.

Would you send goods with payment after delivery - on the basis that you can chase buyers through the courts if they don't pay?

soolin wrote: »

A debit card will give me more protection than a bank transfer.

Yes - that's correct.

But you said that the builder in question doesn't accept debit cards - so what point are you making?


I would pick a builder based on their reliability, quality of work, reputation, etc - not based on whether they accept debit cards.

In fact, I think that some builders decide to accept credit cards purely as a distraction. Because some people will concentrate on CC acceptance, and forget to look closely at price, quality, reputation etc.

(A bit like people who buy sofas because they are 'half price with 4 years interest free credit'. They omit to notice that the sofa is overpriced and poor quality.)

soolin

eddddy wrote: »

That's not really a sensible basis for doing business.

Would you send goods with payment after delivery - on the basis that you can chase buyers through the courts if they don't pay?



Yes - that's correct.

But you said that the builder in question doesn't accept debit cards - so what point are you making?


I would pick a builder based on their reliability, quality of work, reputation, etc - not based on whether they accept debit cards.

In fact, I think that some builders decide to accept credit cards purely as a distraction. Because some people will concentrate on CC acceptance, and forget to look closely at price, quality, reputation etc.

(A bit like people who buy sofas because they are 'half price with 4 years interest free credit'. They omit to notice that the sofa is overpriced and poor quality.)

To answer the bit in red I was replying directly to another response that said a debit card would not give me any benefit at all, when I knew it gave me a bit of an advantage against a company going bust.

soolin

Just as a final update, I got a quote from a bigger National company. They came in eventually at about £1100 dearer but the plans are much more what I had in mind as they offered a bespoke service and could move things around or give me non standard fittings. They also only want a 10% deposit at the time of signing the contract, so quite a bit less than the first company. I also asked about paying the deposit on a card and they seemed surprised I even had to ask, and are happy with a debit or credit card at no extra charge.

I have formally declined the quote from the first company and they have come back to me a couple of times saying they can make an arrangement with a different company to take a debit card at 1% if I didn't mind paying through a company in a different name. I have thanked them but declined.

So I'm getting the design I always had in mind, a little dearer than I had hoped but I am less worried about issues regarding the economy and the porblem of companies going bust.