Retailer-imposed £5K credit card limit

Rocket_Scientist

I am buying a log cabin for £15k, and have been researching the company. I notice that they are a new company. Further investigation shows one director was previously a director of another log cabin company, which is now in administration. 

Reading their T&Cs, there is a limit of £5K on credit card transactions. I know I would be covered under section 75, but I’m wondering why they would stipulate such an amount, or has this been imposed by the credit card companies? They say I can pay the balance by bank transfer, but I am unwilling to do so. 

Other than that, they appear to be a legit company. Am I being overly cautious? 

pinkshoes

Rocket_Scientist said:

I am buying a log cabin for £15k, and have been researching the company. I notice that they are a new company. Further investigation shows one director was previously a director of another log cabin company, which is now in administration. 

Reading their T&Cs, there is a limit of £5K on credit card transactions. I know I would be covered under section 75, but I’m wondering why they would stipulate such an amount, or has this been imposed by the credit card companies? They say I can pay the balance by bank transfer, but I am unwilling to do so. 

Other than that, they appear to be a legit company. Am I being overly cautious? 

This alone would make me want to buy a log cabin elsewhere... 

p3ncilsharpener

Rocket_Scientist said:

I am buying a log cabin for £15k, and have been researching the company. I notice that they are a new company. Further investigation shows one director was previously a director of another log cabin company, which is now in administration. 

Reading their T&Cs, there is a limit of £5K on credit card transactions. I know I would be covered under section 75, but I’m wondering why they would stipulate such an amount, or has this been imposed by the credit card companies? They say I can pay the balance by bank transfer, but I am unwilling to do so. 

Other than that, they appear to be a legit company. Am I being overly cautious? 

Credit card fees are a % of the transaction. Limiting the maximum credit card payment limits the fees they'll pay.

theonlywayisup

What is the company?  Few off the shelf log cabins are really worth the money they charge, most are made of timber that isn't designed to last.  

theonlywayisup

I have replied to your PM.  For the thread, I have suggested the OP does due diligence and finds a local company to build something.  The OP shared the name of the company they are thinking of going with and a quick Companies House check showed 4 sole directorships, 3 dissolved/liquidated.  No money in the fourth. 

Pollycat

pinkshoes said:

Rocket_Scientist said:

I am buying a log cabin for £15k, and have been researching the company. I notice that they are a new company. Further investigation shows one director was previously a director of another log cabin company, which is now in administration. 

Reading their T&Cs, there is a limit of £5K on credit card transactions. I know I would be covered under section 75, but I’m wondering why they would stipulate such an amount, or has this been imposed by the credit card companies? They say I can pay the balance by bank transfer, but I am unwilling to do so. 

Other than that, they appear to be a legit company. Am I being overly cautious? 

This alone would make me want to buy a log cabin elsewhere... 

Me too.
And I'm not a rocket scientist. 😁

Aylesbury_Duck

Walk away.  Sounds potentially troublesome and there are plenty of retailers out there.

DCFC79

I also agree you should walk away.

KeithP

Whilst I agree with the 'be careful' views, back to the original question...

If you were to make a purchase of (say) £15,000 from any company, even paying just £1.00 via a credit card and the rest by bank transfer, then as you say, whole purchase price would be protected by Section 75 of the Consumer Credit Act 1974.

Here's just one example quoted from MSE's Section 75 Refunds article...

Sandtree

Rocket_Scientist said:

I am buying a log cabin for £15k, and have been researching the company. I notice that they are a new company. Further investigation shows one director was previously a director of another log cabin company, which is now in administration. 

Reading their T&Cs, there is a limit of £5K on credit card transactions. I know I would be covered under section 75, but I’m wondering why they would stipulate such an amount, or has this been imposed by the credit card companies? They say I can pay the balance by bank transfer, but I am unwilling to do so. 

Other than that, they appear to be a legit company. Am I being overly cautious? 

You will find many car sellers are the same... credit cards charge merchants a percentage of the spend and if you are paying £10,000 plus its easily £200 and potentially more if they aren't a big company.  

You just need to pay something by credit card to get S75 protection... the only difference for paying some by card and the rest by debit card (which is normally flat fee for the merchant) or bank transfer  is on the option of a chargeback which is capped at the amount you've paid by the card (unlike S75)