Car dealer adding 3% for Credit Card use

Pemberton01

I've had a major disagreement with a garage over a car deposit. A deposit of £195 was required. First I got out my debit card then quickly thought I'd have more protection on a credit card. On producing my credit card I was told it's an extra 3%. I said I felt it was illegal to make a charge for one card and not the other since the law change at the start of 2018. They said they were allowed to cover their payment costs and also tried to justify it by saying the DVLA web site made a £2.50 charge so they could as well. I am of course using a personal credit card not a business one. Can some kind person advise me if I was in the right to query the surcharge which just applies to my credit card or were the garage within their rights to add on this charge?

[Deleted User]

They're not allowed to add the charge for a personal card.

Assuming they will just refuse a credit card without the fee, see if you can persuade them to take a deposit of £1 on it. Probably won't work, but give it a go.

prowla

Just walk away.

[Deleted User]

But not a tender specific charge.

System

Illegal. End of.
Next stop trading standards.

Pemberton01

I really appreciate the replies so far. So that I'm in full possession of the facts does anyone know about this £2.50 DVLA web site charge the garage are using to try to justify adding 3%? My own thoughts were that this was a business card fee which companies, DVLA included, could still add though the garage insisted it applied to individuals like me as well.

[Deleted User]

The DVLA don't charge for personal credit cards (as it's illegal). It seems your car dealer is [STRIKE]lying [/STRIKE]not in full possession of the facts.

They can still charge for business cards.

buglawton

Pemberton01 wrote: »

I've had a major disagreement with a garage over a car deposit. A deposit of £195 was required. First I got out my debit card then quickly thought I'd have more protection on a credit card. On producing my credit card I was told it's an extra 3%. I said I felt it was illegal to make a charge for one card and not the other since the law change at the start of 2018. They said they were allowed to cover their payment costs and also tried to justify it by saying the DVLA web site made a £2.50 charge so they could as well. I am of course using a personal credit card not a business one. Can some kind person advise me if I was in the right to query the surcharge which just applies to my credit card or were the garage within their rights to add on this charge?

On personal credit cards the DVLA does not charge a fee
http://www.legislation.gov.uk/uksi/2017/1239/made
Car dealers pants on fire?

An upside of paying the deposit by credit card, if not the balance, is that the whole purchase gets Section 75 protection eg against dealer bankruptcy or failure to deliver / breach of contract / misrepresentation. For that kind of insurance 3% of say £150 is a bargain anyway but I'd never buy from a fibbing salesman.
https://www.which.co.uk/consumer-rights/regulation/section-75-of-the-consumer-credit-act

onlyfoolsandparking

Major disagreement?? really!


Is it not possible you could just try having a reasonable conversation culminating in a satisfactory conclusion for you AND the garage worker/owner.

MEM62

They want your business or not. If they are running on margins that are that tight that they have to argue about £5.85 you have to wonder whether you want to be buying a car from them. Walk away and go buy from someone that has a better level of customer service.

Pemberton01

Thanks, it's great to able to see the legislation. I hesitate to tell the second part of the story as you'll say I've been stupid and I really know it. Feeling under pressure in the garage office with several people I didn't know looking on as we had the disagreement about credit card surcharges I paid the £195 deposit on my debit card. I know. It was when I got home and did some research which you kind folks have kindly confirmed that I decided they couldn't be trusted and wanted to back out. They won't refund my deposit, work to prepare the car such as putting it through a new MOT had started. am right in thinking I'm not legally entitled to my money back and am going to have to write the money off and put it down to a very unfortunate experience.