credit cards and pre-paying

[redcrx]

As credit cards offer some sort of protection when something you pay for does not arrive and the company your bought from goes bust or something, do the CC company pay even if youve paid the balance off?

i hope that make sense.

My friend is wanting to buy a sofa, she has the cash but is worried in the current financial climate that she may lose her money if the sofa didnt arrive and she wont take credit rom the supplier.

She has a credit card which she pays every month in full, but the limit isnt high enough for the cost of sofa.

If she was to pay the CC company in advance, put her card in credit and then buy the sofa would she be covered if the sofa didnt arrive?

[CheekyChops]

Yes, is the short answer.

[Ethel]

All credit card companies have to offer this protection under s.75 Consumer Credit Act, if the purchase if over �100.

That is the law and the company cannot opt out. It means that if the card is used to pay for goods and they either don't arrive or are faulty, the credit card company is equally liable.

It matters not a jot whether the card is paid off or not

[redcrx]

thank you cheeky.
Shes now asked the CC company and they havnt a clue lol

[redcrx]

and thank you too, Ethel :)

[Ethel]

And yes, she can pre load the credit card in advance of the purchase

[kempie]

I'm not so certain of that Ethel.

Many credit card providers have T&Cs that do not allow for positive balances on the card account and such a breach of the Agreement could negate any Section 75 protection you would otherwise benefit from.

Better off either requesting a credit limit increase or placing only part of the purchase on the card.

[chas2008]

i now order everything by C/Card just for the protection, i did see on a TV program that if you only pay a part of the purchase on CC they are still liable for the full amount, a bit of info im sure the CC companys would prefer to keep quiet

[redcrx]

thats handy, thank you.
so she could just pay up to her limit by CC? but then would they only protect the value that the covered and not her cash balance?

[kempie]

As stated, provided some part of the transaction is made by CC the card provider becomes liable (under certain conditions) for the full amount.

http://www.financial-ombudsman.org.uk/publicat ions/ombudsman-news/31/creditcards-31.htm

[chas2008]

thats what i heard , not sure if it was the TV or the Radio , they actually said if you just put �20.00 on the card it would cover you for the full amount. Im sure someone else on here will confirm it

[redcrx]

brilliant, thank you everyone!

[chas2008]

Cheers Kempie, you just did !