Reply to: Over 50s getting deeper in debt

[wendigo100]

Originally Posted by wendigo100
I preferred the other status quo.

Is that the red pill, or the blue pill?

Whad'ever You Want

[Joe Black]

I preferred the other status quo.

Is that the red pill, or the blue pill?

[meridian]

I've noticed an annoying trait recently where retailers are now charging customers the fee they pay to credit card companies for using their card, making using the debit card more attractive for frequent purchases.

I was always under the impression that a credit card would offer more consumer protection than a debit card?

Is this still the case?

ISTR it started with Ikea? Something like an additional 70p if you pay by cc but not if by cash or debit card?

[oraclesmith]

According to some news article I read recently, the main reason people rack up really big debts seems to be that they spend money on things they can't keep. Eg. holidays, meals out, entertainment and other experiences which people have nothing to show for. If they were to only spend on assets they would at least have something to sell and it would be more obvious where the money is going.

Debt is also becoming more conceptual. People with large debts with institutions such as banks (ie. not the local loan shark), have little physical evidence of being in debt other than the occasional sharp letter from the bank. So long as they keep paying the interest no-one cares. It's too easy to be in huge debt and not feel poor.

[ASB]

I was always under the impression that a credit card would offer more consumer protection than a debit card?

Is this still the case?

Yes. The consumer credit act applies. It does not apply to a debit card or something you must pay off (e.g. some amex, diners etc).

Also you don't get the protection if you use a payment service (e.g. nochex). The banks view is that you buy a "token" that is supplied and passed to the supplier as your agent. The banks view is that the token was supplied and the contract fulfilled, thus section 75 does not apply.

This view is not shared by the OFT (who are hoping to get clarity) or most people. I'm currently debating on whether to take egg to court or not.

Do not use a credit card with any third party payment agency if you want to be covered (Paypal do accept chargebacks but they could change this policy if they wished).

[AtW]

I was always under the impression that a credit card would offer more consumer protection than a debit card?

Yeah, I think for distance sales its better - particularly from abroad, this makes it easier to dispute charges basically refuse to pay them and credit company will charge back. Credit companies charge retailers around 2-3% for each transaction, which as you appreciate adds up considerably especially in businesses with tight margins.

IMO VISA debit card is fine - if it was switch (thus not accepted online) then it would suck, but thankfully it all works. Only keep credit card for unlikely but possible car hire or foreign Net purchases.

[hyperD]

I actually do have credit card - I use it at times when I really don't like the person/company I need to pay money to (like fines for alleged speeding) because I know that by accepting cc payment they will pay much more than if I used cash or my VISA debit card that I use instead of credit: I have no debts of any kind, morgage is the only possible one I could agree to in principle but current house prices are a joke so I am not buying house anytime soon.

I've noticed an annoying trait recently where retailers are now charging customers the fee they pay to credit card companies for using their card, making using the debit card more attractive for frequent purchases.

I was always under the impression that a credit card would offer more consumer protection than a debit card?

Is this still the case?

[PropertyCrashUK]

I was told yesterday about a chap who works in a well known bank dealing with people owing 5 figure sums on credit and who are having trouble paying it back. Apparently he handles about 14 calls a day and is one of 200 staff working on the same thing.

[AtW]

I actually do have credit card - I use it at times when I really don't like the person/company I need to pay money to (like fines for alleged speeding) because I know that by accepting cc payment they will pay much more than if I used cash or my VISA debit card that I use instead of credit: I have no debts of any kind, morgage is the only possible one I could agree to in principle but current house prices are a joke so I am not buying house anytime soon.

[Pondlife]

You really don't have a credit card (or never use it?). I just wonder how you'll fill your car up in a couple of years when garages will take neither cheques nor cash.

A debit card perchance.

[ASB]

My monthly credit card repayment level is 0%.

You really don't have a credit card (or never use it?). I just wonder how you'll fill your car up in a couple of years when garages will take neither cheques nor cash.

[wendigo100]

My monthly credit card repayment level is 0%.

Mine is paid off automatically every week.

[AtW]

My monthly credit card repayment level is 0%.

[ASB]

Portugal the minimum payment is set at 15% to make people more responsible with their spending.

I believe it is generally 10% (mine was but my affairs were a bit different to the usual domestic customer).

[Fleetwood]

..... with interest at nearly 2%, you'll take forever and a day to pay it off.
In Belgium, the minimum is 5% and I've opted for ten.
Edit : The minimum repayment is taken as a direct debit from current account.