Estate agent fees payment - credit card?

ryanm8655

Hi all,


Am moving flat and had references accepted etc.


Paid a holding fee by credit card, had planned to pay the balance by credit card (around £5k more to pay). To my surprise the agent has said they aren't able to accept payment by credit card...


I explained I paid the holding deposit (£500) by credit card and they then said it must've been one of the final payments they accepted before the change in legislation...though the payment was made 2 weeks after the legislation change...


I had forgotten about the legislation change, which means they aren't able to charge a fee for credit cards anymore...so I can understand why they aren't keen...they'd be losing around £100 effectively (though I'd happily take the hit)...


I understand they are perfectly entitled to turn down payment by credit card if they wish, but is there any point in pushing the point? Does their initial acceptance have any implications?


The main issue is one of cash-flow...I have £3k tied up in my deposit on the current flat...I could pay cash at a stretch but would rather not if possible...


Thanks,
Ryan

eddddy

If you've entered into a contract, and the contract allowed you to pay by credit card (e.g. because the agent told you that), and now they are refusing to allow it - that would be breach of contract/misrepresentation, so you might have a case.

Otherwise, some credit cards allow money transfers into your bank account (but I guess you know this).


I guess this is an 'unintended consequence' of the new legislation. People are also complaining that government departments will no longer accept credit cards - so they can't put their tax bill on a credit card!

ryanm8655

Hmm...that's an interesting point re: contract.


We made an offer for the flat and with that off paid the holding deposit by credit card...I'm not a lawyer but iirc there is something about past relations in contract law but not sure if that would apply here. Also I guess you could argue we made an offer, that offer was accepted and our deposit taken by credit card which constitutes consideration and therefore a contract is formed...hence it's implicit that credit card is an acceptable form of payment...so by not accepting they are breaching contract. I'm not a lawyer so that could be completely wrong...


I am yet to sign the tenancy agreement, so probably even less applicable.


Yes, exactly...I am happy to pay credit card fees as a price of convenience.


Thanks.

RADDERS

I believe that if the contract was entered into before the legislation then you can still pay the balance by the credit card as you had paid the deposit by credit card.
The same is if you had booked a holiday last year then you can pay the balance by credit card as the contract was entered into before the legislation.

ryanm8655

It wasn't - we made the offer and paid holding deposit post legislation and the tenancy agreement will be signed/begin post legislation also.


So I guess the answer is no and I should just pay in cash...


Essentially my plan was to make use of a 0% credit card offer and stick some cash in investments...just means I can't do that...