Just committed to a magazine advertisement, is there protection if paid using credit card

Hello
Just committed to feature in a local magazine over 2 years, deposit paid and remaining to be paid in month 3 to 5. I've paid the deposit via BACS but was wondering if I pay the remaining instalments via a personal credit card, whether section 75 would apply - we don't have a credit card in the ltd's name? Just in case the magazine/advertising firm goes bust. Thanks.

Comments

  • Sandtree
    Sandtree Posts: 10,628
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    If its a limited company then no, section 75 is of the Consumer Credit Act and so doesnt apply to LTDs (nor can you use your personal card as it will be on behalf of the company)
  • katy123
    katy123 Posts: 365
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    edited 24 September 2020 at 4:17PM
    so no safeguards what so ever?

  • Sandtree
    Sandtree Posts: 10,628
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    Not from using a credit card.

    Businesses get much less statutory protection as your supposed to be on a more level playing field with other businesses to not need nanny state to help
  • Savvy_Sue
    Savvy_Sue Posts: 45,938
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    But do google the magazine and check it is legit and not one of these where the magazine never actually appears ...
    Signature removed for peace of mind
  • katy123
    katy123 Posts: 365
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    Thank you for all the replies, the magazine does exist, checked it out with the local garden centre. It was just in case the company goes bust because after month 5, we would have paid the full balance that covers the contract for 2 years. It's a good few thousand £'s.

  • Sandtree
    Sandtree Posts: 10,628
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    There are types of Trade Credit Insurance that covers advance payments but I suspect they are targeting something bigger than advertising.

    I assume be locking into 2 years you are getting a decent discount, and in part this will represent the risk. You can always negotiate with them and maybe propose 6 monthly payments rather than all up front.
  • Vectis
    Vectis Posts: 680
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    As above, I assume you're getting a discount for signing up for 2 years but that's still quite a long time. What happens if you don't get any enquiries? Would it not be possible to just pay for a month or two initially, see how it goes and then make a decision?
  • I don't think so, i, myself, looked at magazine advertising earlier in the year and that wasn't an option, to me then.


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