Section 75/Chargeback question

born_again

Civvy21 said:

Just another thought. Is there a "safer" way of paying for items that are in excess of £30k? Or are debit cards with a chargeback facility the safest option? I understand Section 75a covers linked finance but obviously doesn't help if you have arranged finance elsewhere.

In an ideal world the upper Section 75 limit of £30k should be increased. I'm sure the banks are happy for it not to stay as it is but hopefully at some stage it should change. Has anybody heard of any moves to do so?

Thanks.

TBH. The whole S75 needs revisiting. As it was never designed for credit cards. It was aimed at finance that was provided for goods sold by companies, so there was a link between retailer & finance co.
Unlike now where you can purchase anything & so long as in the S75 requirement it is covered.
When you think you can pay 1p on your CC & it would cover up to £30K. That is very generous. Given it comes out of lenders pocket. So that is something at the end of the day we all pay for as it is factored into the interest rates.

Do not forget that they will still have their consumer rights protection on the purchase.

DullGreyGuy

Civvy21 said:

Just another thought. Is there a "safer" way of paying for items that are in excess of £30k? Or are debit cards with a chargeback facility the safest option? I understand Section 75a covers linked finance but obviously doesn't help if you have arranged finance elsewhere.

In an ideal world the upper Section 75 limit of £30k should be increased. I'm sure the banks are happy for it not to stay as it is but hopefully at some stage it should change. Has anybody heard of any moves to do so?

Agree with others that S75 needs a fundamental revisit and its likely to become lesser protection not more... it comes from a bygone age when retail and credit were totally different.

As to safer ways? There are various schemes out there but some would be costly in themselves... I've seen escrow being used but where the item and the cash arent released until an independent engineer validates the item. You've got the cost of escrow and the engineer to be covered though.

In theory you could use PayPal for their Buyer Protection but its arguable if thats better than a chargeback and you'd have to convince the merchant to accept it. 

Civvy21

Thank you all for your very interesting and helpful comments. 

Ectophile

I would have thought that the safest way would be to buy the caravan on finance.  Then having checked that everything is OK with it, pay off the finance early.