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Buying on a Credit Card

Community Veteran
Posts: 16,836
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Registered: 06-11-2007

Buying on a Credit Card

I am contemplating buying a new camera, and intend to use my credit card.  I seem to remember some financial pundits saying if the item costs over £100 (which this camera does) then buying on a credit card gives you some added benefits if things go wrong.
"section 75" seems to ring a bell in my head, but cannot find anything that lays down the benefits of this route.
I understand that the credit card company is as much liable in the case of faulty goods, but is this for a limited period? i.e. only while you owe the credit card company?  What happens if you pay off in full on first credit card bill? or 30 days?  or is it for the "life of the guarantee" of the item?
Can anyone point me in the right direction?  Undecided  Undecided  Undecided
20 REPLIES
techguy
Grafter
Posts: 2,540
Registered: 12-09-2008

Re: Buying on a Credit Card

As far as I understand it, the issuer can be held liable if the supplier does not provide the goods, they are faulty or the supplier goes out of business and so cannot fulfill their obligations under a guarantee because they have ceased trading but think this is only while the amount is outstanding.
What scheme does the card you are intending to use belong to, is it Visa, Mastercard or American Express?
If you let me know I'll do some digging for you.
Community Veteran
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Registered: 30-07-2007

Re: Buying on a Credit Card

pierre_pierre
Grafter
Posts: 19,757
Registered: 30-07-2007

Re: Buying on a Credit Card

apparently the Barclays charge card also covers you, most charge cards dont
Community Veteran
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Registered: 13-04-2007

Re: Buying on a Credit Card

The best guide is here
http://community.plus.net/forum/index.php/topic,67365.0.html
You can see how it helped me after 6 months they paid for the car and all the repairs total of £1800 and I didnt pay for it all on the card. It seems ok if you get Trading Standards in on the case this isnt necessary but some I believe argue with you if you dont. In my case TS took them to court so no problem.
Dont forget depending on your card you get cash back as well for buying on a card.
Thought you just got a new camera is this another one?
Community Veteran
Posts: 1,229
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Registered: 30-07-2007

Re: Buying on a Credit Card

some Visa debit cards will, some won't ... caveat emptor and all that caper
Community Veteran
Posts: 16,836
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Registered: 06-11-2007

Re: Buying on a Credit Card

HI folks,
Thanks for the replies & info.... still a bit confused about the section 75. as this statement is unclear to me....
"For section 75 to apply, certain conditions must be met. Most credit card purchases will be covered, but:
    * the cash price of the goods or services must be more than £100 and not more than £30,000; and
    * purchases are not covered if they are made by debit cards or by charge cards (where the monthly bill has to be settled in full)."
In particular it says ..... most credit card purchases will be covered,    BUT    .(no problem with the first "but" ) then ends with ((where the monthly bill has to be settled in full).")  Which seems to refer to DEBIT and CHARGE cards, but is also implied with CREDIT CARDSHuh?
The card I intended to use is a Visa CREDIT card
I did buy a new camera, a Fuji S8000 but it was terrible, I actually bought two from two different stores over 250 miles apart, and they both had the same faults..... purple fringing, barrel distortion, and lousy quality pictures.  so I returned them to CURRYS and got a full refund.
I am now looking to buy a Panasonic Lumix DMC FZ28..... 18X optical zoom (same as Fuji s8000/81000)
Any further clarification/comments appreciated.

Thanks


pierre_pierre
Grafter
Posts: 19,757
Registered: 30-07-2007

Re: Buying on a Credit Card

Quote
* purchases are not covered if they are made by debit cards or by charge cards (where the monthly bill has to be settled in full)."

Cant see where the confusion is Gerry.  A Debit card is where the money is taken out of your bank straight away.  A charge card is one that is normally issued by a store and not covered by the Credit cards act, i.e. you have to pay the bill at the end of each month
Community Veteran
Posts: 16,836
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Registered: 06-11-2007

Re: Buying on a Credit Card

Hi Pierre,
The confusion arises because of the word "and" at the end of the first  condition..... as if the two go "hand in hand".... in other words the two conditions apply together....

if you get my drift...
Community Veteran
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Registered: 12-08-2007

Re: Buying on a Credit Card

Shutter, I provide some consumer advice to an internet help line and can confirm that if paying by credit card you are protected under section 75 of the Consumer Credit Act 1974.  As you have already said the goods have to be over £100 but you are still covered if you only pay a deposit by cc and the balance in cash.
If you have a dispute with a retailer you can often get speedier resolve if you have your cc company batting for you.
Certain debit cards also offer you similar protection.  Generally these are the ones bearing the 'visa debit' logo but as these vary bank-to-bank it is best to check with your own bank.
Here's a site that might help:
http://www.financial-ombudsman.org.uk/publications/ombudsman-news/31/creditcards-31.htm
techguy
Grafter
Posts: 2,540
Registered: 12-09-2008

Re: Buying on a Credit Card

Artmo, I knew there was some protection like this but does it last only until the CC account is settled in full or if for example you have paid it off, the product has a two year warranty and the supplier goes bust during that period?
Community Veteran
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Registered: 15-06-2007

Re: Buying on a Credit Card

As an example - some time ago an item failed under warranty (it was a computer part but I can't remember what) and was sent back. The company then went into receivership so I contacted the credit card company and got a full refund.
Community Veteran
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Registered: 06-11-2007

Re: Buying on a Credit Card

techguy seems to be on the same wavelength as me.... does the protection given by section 75 last for the lifetime of the guarantee (2 years) even if you have paid it off in full in the first payment?  or is it only effective, if you have an "outstanding balance" with the Credit Card company?  (regardless of whether the retail company has gone bust)
I am not envisaging any problems, as it is a well known brand, but the initial purchase will be "on-line" to a "on-line" retailer, with no actual shops to return goods to, in the event of problems. The on-line retailer has some very good feeback comments .... (a large number, not just 6 or 7 )
Community Veteran
Posts: 38,251
Thanks: 937
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Registered: 15-06-2007

Re: Buying on a Credit Card

Actualy shutter you are confusing two things - the warranty and your legal rights against the seller. It is the legal rights which are jointly against the seller and the credit card company. Normally the warranty is actually given by the manufacturer and isn't as far as I know part of your contract with the seller.
This is one reason why it is a good idea to deal with a manufacturer who has a returns setup in the UK.
This is the Panasonic setup
Community Veteran
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Registered: 12-08-2007

Re: Buying on a Credit Card

Your protection doesn't run out when the goods have been fully paid.  There was a case some months ago where an individual involved a card company in a dispute despite the fact that he had cancelled the card in the meantime.
You've sensibly done a check on the on-line retailer you are dealing with but if they should cease trading then the manufacturer will still be around for service.  Who is providing the warranty, the retailer or the manufacturer?