Offered discount but only if bought using shop's interest-free finance scheme

LimaAlphaHotel

Long story short, I was persuaded on Saturday to sign-up for an interest free loan in-store because they would offer me a better price on the goods if I did (despite having vouchers on face value should have beaten the finance offer, as it was described to me). The BBC website says this practice (offering a discount for good or services tied to taking out an interest-free loan) is illegal but don't cite a source - does anyone know what legislation/case-law/ruling establishes that.

I wanted to pay in full, up front on credit card to keep my section 75 protection. Needless to say, I have complained - I feel pressured into taking the deal and, with hindsight, duped.

Backstory is I needed new glasses after my eye-test at a major high-street chain. I went in armed with a voucher that promised me a free test, 30% off the first pair and 50% off a second pair if I spent over £50.The sales assistant offered me a better price (by £30) that what she worked out it to be with the voucher but only if I sign up for their interest-free loan. She claimed this lower price was made up of the free eye-test and 30% of both pairs. I can't work out how she worked that out to be cheaper than 30% of the first pair and 50% off the second pair voucher I went in with. The receipt is indecipherable. I have complained to the chain's central customer services team but I want to know if this sort of pressure selling is actually illegal, or just underhand.

Peter999_2

Where exactly did you read it was illegal?     I thought it was fine so long as they were open and transparent about it.

The last time I bought a car from a dealer in 2020 I got a £1,000 discount and 2 years of free servicing so long as I took out a load with them.   I checked at the time and it was legal.

eskbanker

Legislation outlawing differential payment surcharges came into force in January 2018, the primary effect of which was to stop the widespread prior practice of retailers levying extra charges for paying by credit card.  It's clear that selectively offering discounts for specific payment instruments (e.g. for cash) is treated in the same way as surcharging for other means, so that isn't permitted either.

However, it's still perfectly acceptable for energy companies to offer cheaper tariffs to those paying by direct debit, for example, so there is still the concept of differential pricing where it's not related to the use of a particular payment instrument as such, so it may be that financing is seen in that light?

Grumpy_chap

LimaAlphaHotel said:

Long story short, I was persuaded on Saturday to sign-up for an interest free loan in-store because they would offer me a better price on the goods if I did (despite having vouchers on face value should have beaten the finance offer, as it was described to me). The BBC website says this practice (offering a discount for good or services tied to taking out an interest-free loan) is illegal but don't cite a source - does anyone know what legislation/case-law/ruling establishes that.

I wanted to pay in full, up front on credit card to keep my section 75 protection. Needless to say, I have complained - I feel pressured into taking the deal and, with hindsight, duped.

Backstory is I needed new glasses after my eye-test at a major high-street chain. I went in armed with a voucher that promised me a free test, 30% off the first pair and 50% off a second pair if I spent over £50.The sales assistant offered me a better price (by £30) that what she worked out it to be with the voucher but only if I sign up for their interest-free loan. She claimed this lower price was made up of the free eye-test and 30% of both pairs. I can't work out how she worked that out to be cheaper than 30% of the first pair and 50% off the second pair voucher I went in with. The receipt is indecipherable. I have complained to the chain's central customer services team but I want to know if this sort of pressure selling is actually illegal, or just underhand.

You may still have S75 or S75A protection by having taken out the linked finance.

Was the price you paid actually cheaper than the price using the voucher?  If so, how that was calculated does not seem particularly important.

user1977

Are you seeking some sort of remedy here eg to return everything for a refund? Or just curious about the lawfulness?

MyRealNameToo

Grumpy_chap said:

LimaAlphaHotel said:

Long story short, I was persuaded on Saturday to sign-up for an interest free loan in-store because they would offer me a better price on the goods if I did (despite having vouchers on face value should have beaten the finance offer, as it was described to me). The BBC website says this practice (offering a discount for good or services tied to taking out an interest-free loan) is illegal but don't cite a source - does anyone know what legislation/case-law/ruling establishes that.

I wanted to pay in full, up front on credit card to keep my section 75 protection. Needless to say, I have complained - I feel pressured into taking the deal and, with hindsight, duped.

Backstory is I needed new glasses after my eye-test at a major high-street chain. I went in armed with a voucher that promised me a free test, 30% off the first pair and 50% off a second pair if I spent over £50.The sales assistant offered me a better price (by £30) that what she worked out it to be with the voucher but only if I sign up for their interest-free loan. She claimed this lower price was made up of the free eye-test and 30% of both pairs. I can't work out how she worked that out to be cheaper than 30% of the first pair and 50% off the second pair voucher I went in with. The receipt is indecipherable. I have complained to the chain's central customer services team but I want to know if this sort of pressure selling is actually illegal, or just underhand.

You may still have S75 or S75A protection by having taken out the linked finance.

I'd be surprised if the OP paid over £30,000 per pair of glasses to be able to use S75a!

Peter999_2 said:

Where exactly did you read it was illegal?     I thought it was fine so long as they were open and transparent about it.

It's in connection with the law against charging extra for paying by a personal credit card (they can still charge more for using a business credit card). The fear was that to avoid the law companies would simply mark up the prices and then offer a 3% discount for anyone paying by a method other than credit card which in effect means CCs are still being penalised 

Various responses were taken which were deemed legal, HMRC for example you simply can't pay by personal credit card.

LimaAlphaHotel said:

I wanted to pay in full, up front on credit card to keep my section 75 protection. Needless to say, I have complained - I feel pressured into taking the deal and, with hindsight, duped.

Read your agreement, does it reference the Consumer Credit Act? An interest free loan can still be regulated and therefore give S75 protection but they can also be structured as not needing to be and so then dont. 

Did you not have to pay anything at all on the day? No token deposit and the rest on credit? As long as some part of the payment was made with a regulated credit product then S75 applies, doesnt have to be the full balance. 

born_again

I doubt very much, that they will allow you to pay off the loan on a credit card.

You should have just left them the free sight test voucher & walked out, with your perscription & gone elsewhere.

Although you do have a get out here. Cancel the finance agreement, as you can under the 14 day cooling off, & then pay on card when you pick the glasses up.
Although S75 on a pair of glasses is not something you really need.

MyRealNameToo

born_again said:

I doubt very much, that they will allow you to pay off the loan on a credit card.

If they do there is a risk it may be seen as a cash like transaction and therefore attract fees and instant interest and given its a loan thats being repaid still no S75... though I agree dont see much need for S75 on a pair of glasses from what sounds like a national retailer. 

born_again

MyRealNameToo said:

born_again said:

I doubt very much, that they will allow you to pay off the loan on a credit card.

If they do there is a risk it may be seen as a cash like transaction and therefore attract fees and instant interest and given its a loan thats being repaid still no S75... though I agree dont see much need for S75 on a pair of glasses from what sounds like a national retailer. 

At a guess it is a well know high street retailer that we all "should have gone too"....