Purchasing with Credit Cards
When you have a credit card that you make purchases with you have to realize the transaction is not your entire responsibility. You do have to make sure you are charged on the receipt properly for the item you purchase, but what if the corresponding statement has a different amount or maybe you never received the goods. The lender or card issuer and the supplier, the place you purchased items from, are responsible for your purchase. This means that if something goes wrong with the supplier the money can be returned from the lender to you. If the goods are damaged or not delivered you can file a claim with the credit card company to get your money back either from the lender or the supplier. The good thing is if the supplier goes bust, but still charged you for goods not received you can still get your money back.
The law, section 75 of the Consumer Credit Act of 1974, states that you are protected for your purchases. There are a few exceptions to this act. The credit card company is only responsible for goods or services costing more than 100 pounds and less than 30,000 pounds. That means a small insignificant amount like 5 pounds is not going to be covered. The protection is only for credit card purchases. This means that it does cover all types of plastic such as charge cards or debit cards.
You do have ways of enacting the law if the matter is not resolved properly. In other words if the company has closed and refuses to send you the goods or return your money you have other ways of trying to resolve the issue. The same can be said for the credit card company. If they deny a claim you are able to file a report. What you do is fill out a complaint to the Financial Ombudsman Service and they will research the complaint to see if there is anything they can do.
If you can’t keep up with the payments you should not ignore the credit card. Instead no matter what happens or even if a claim is not resolved to your satisfaction you should still pay off the balance on the card. Paying off the balance will help you to keep your good credit score and show that you are willing to work with the company; therefore they should be able to work with you. You can also get free and expert help in dealing with the payments. You have legal rights and the experts can explain those to you as well as provide a debt adviser to help you deal with the lender.
A few tips to follow regarding credit cards are as follows: you should remember the protection the credit cards can give you if something goes wrong on larger purchases, and you should not struggle alone with money problems. Instead seek the help you need to get the matter resolved. It is up to you to be responsible as well as the companies.
Back To January 2008 Financial News
Purchasing with Credit Cards
Traps with Credit Cards
Understanding Credit Scoring
What Is A Credit Reference Agency
Testing Your Debt
10 Ways To Save Money
Benefits of Savings
How To Save of Invest Your Money
Individual Savings Accounts
Sainsbury’s Bank Internet Savings Account
Product Types For Savings
Saving with Child Trust Funds
Savings and Investments Advice
Trouble Ahead with Free Banking
Warning: Savings Rate Change
What Makes Consistent Savings Account?
Credit Building Solutions
Britain Needs to Protect Itself
Free Banking or Unfair Bank Charges
Reintroducing Child Savings
How To Get The Most From Reward Credit Cards - Part 1
How To Get The Most From Reward Credit Cards - Part 2
UK Economy Growth
UK Rate Cut
US Recession and Britain |
