PRO­TECT­ING YOUR PUR­CHASES IN TH­ESE TOUGH TIMES

The Jewish Chronicle - - Business -

THERE’S an easy way to pro­tect your pur­chases in th­ese tough eco­nomic times. Sur­pris­ingly, it’s us­ing a credit-card. A lit­tle­known law, Sec­tion 75 of the Con­sumer Credit Act 1974, says that if you buy any­thing cost­ing be­tween £100 and £30,000 on a credit-card then the card is­suer is jointly li­able with the re­tailer or sup­plier if things go wrong. So, if the com­pany goes bust and you haven’t re­ceived your de­liv­ery, the credit-card com­pany is legally obliged to give you your money back. Of course, that doesn’t mean credit-cards should be treated lightly. They are danger­ous, and the amount of in­ter­est they can charge you is huge. But pro­vided you set up a di­rect debit to re­pay the bill in full ev­ery month, then all your big spending should be done on the card, rather than any other way to pro­tect your­self. This pro­tec­tion ap­plies to credit-cards only.

Un­for­tu­nately, what counts as “more than £100” can get a bit com­pli­cated. For in­stance, if you buy a kitchen for a to­tal of £4,000 com­pris­ing sep­a­rate units of vary­ing prices, only the units that cost more than £100 would be pro­tected.

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