Currys Finance and HFC - Page 2

MikeSz · 15-01-2008, 11:24

Having checked through this, im afraid I cant find anything that would prevent the trader from refusing to accept a credit card. Unless agreed otherwise in the terms and conditions (i.e. acceptable payment methods), they dont have to accept a credit card. Unfortunately, there is no 'right' to pay by credit card, just a duty to comply with the credit agreement.

I think that the trader is probably refusing to accept the credit card payment as they will have to pay commission on the transaction. There is nothing to stop you however sending them a credit card cheque or drawing the money from the card itself.

Hope that helps.

***Mr D*** · 15-01-2008, 12:16

Thanks for the replys/interest.

Here is the Email I got back from them today.

Thank you for your recent Email

HFC Bank do not accept payment by Credit Card, and we don't accept
paying off credit with another form of credit. We accept all of the
following:

- Debit/ Switch Card
- Cheque/ Postal order
- Internet Banking/ telephone Banking

We do apologise for any inconvenience which may have been caused, but
if you wish to log a complaint, then please do so on the following address:

HFC Bank Limited
P.O. Box 2445
Birmingham
B1 3PJ

Regards
Customer Services

Now I have desided that I will pay them by cheque as Im sure my credit card sent me some, just got to find them.

I will be writing to them to say that it should be made clear at the time of taking the credit agreement that it cannot be settled by credit card when its due.

claytonender · 15-01-2008, 12:25

If you can't find your credit card cheques, it might be possible to ring your credit card company and get them to pay HFC Bank direct. You would have to give them HFC's bnak details and the ref number HFC have allocated to your agreement with them.

However if you do use a Credit Card Cheque (or get your card company to pay HFC direct), remember that your Credit Card company will probably charge you a balance transfer fee (most Credit Cards seem to be charging 3% - on £260 this would cost you £7.80)

nikkival · 15-01-2008, 18:17

I had a word with my aunt today who's an ex-bank manager, I just hope I manage to word what she told me well enough! As you've entered into a credit agreement with Curry's/HFC, you cannot use another means of existing credit (ie credit card) to pay it off, although there are ways around it such as credit card or Flexiloan cheques as mentioned before in this thread. It would be exactly the same if you took out a new credit card which gave you an opening offer of 0% for 6 months, you can't pay up before you are charged interest with another credit card.

For example I couldn't pay a Mastercard bill with a Visa card and vice versa every month - as I would never be charged any interest. I cannot pay a loan payment every month with a credit card, as you cannot use a credit card for anything other than purchasing goods or services from a merchant, i.e. you can't use it to pay off interest from another debt (with the exception of drawing cash or using cheques which is charged at a different rate). The banks, finance houses & card issuers are wise to every trick in the book and don't allow payment by credit card to protect the money they make on interest payments. None of the credit companies I use will accept payment via another credit card. However my catalogue account does, this is because they do not charge interest on goods bought over 20-52 week terms as they have already inflated the prices without having to charge interest! It all revolves around the interest as this is how they make their money!

When you balance transfer on cards this is a different matter - you are in effect accepting a new credit agreement at a different rate to your normal purchase interest rate, which is the same principle as taking out a consolidation loan or mortgage to pay existing debtors.

HFC also don't have to accept credit cards - they have the right to refuse payment by that method, just as some stores are now refusing to take cheques or some stores don't accept American Express.

I hope this is clear enough to understand!

***Mr D*** · 15-01-2008, 18:24

Quote:

Originally Posted by nikkival

I had a word with my aunt today who's an ex-bank manager, I just hope I manage to word what she told me well enough! As you've entered into a credit agreement with Curry's/HFC, you cannot use another means of existing credit (ie credit card) to pay it off, although there are ways around it such as credit card or Flexiloan cheques as mentioned before in this thread. It would be exactly the same if you took out a new credit card which gave you an opening offer of 0% for 6 months, you can't pay up before you are charged interest with another credit card.

For example I couldn't pay a Mastercard bill with a Visa card and vice versa every month - as I would never be charged any interest. I cannot pay a loan payment every month with a credit card, as you cannot use a credit card for anything other than purchasing goods or services from a merchant, i.e. you can't use it to pay off interest from another debt (with the exception of drawing cash or using cheques which is charged at a different rate). The banks, finance houses & card issuers are wise to every trick in the book and don't allow payment by credit card to protect the money they make on interest payments. None of the credit companies I use will accept payment via another credit card. However my catalogue account does, this is because they do not charge interest on goods bought over 20-52 week terms as they have already inflated the prices without having to charge interest! It all revolves around the interest as this is how they make their money!

When you balance transfer on cards this is a different matter - you are in effect accepting a new credit agreement at a different rate to your normal purchase interest rate, which is the same principle as taking out a consolidation loan or mortgage to pay existing debtors.

HFC also don't have to accept credit cards - they have the right to refuse payment by that method, just as some stores are now refusing to take cheques or some stores don't accept American Express.

I hope this is clear enough to understand!

Cheers for that info and nicely put.

I can sort of under stand the reasons why but it should be pointed out to the customer.

I can use a credit card cheque but would be charged like I was drawing cash. IIRC 3%.

Ah well I will just put it on the debit card and treat it as a lesson learned.

claytonender · 15-01-2008, 20:38

It might be worthwhile, reporting Currys/HFC to the Financial Services Authority as they did not make the methods of paying the loan off before the end of the interest free payment period. As you signed a loan agreement all the terms should have been expalined to you in detail, befoire you sign the papers. If you had been told that credit card payments were not accepted you would possibly have not taken out the interest free loan. Also do you have to pay a fee for settling the account in full before any interest payments start? If you do was this expalined to you, as the loan would not then be interest free.

I know that Currys etc do press customers to take out loans rather than pay for goods in full.

I bought a laptop for my grand daughter before Christmas from Comet (the price was very low for the spec of the laptop - was obviosly a loss leader) I had ordered on the internet to collect in store, and had also order a 1/2 price printer and 1/2 price laptop bag. I declined the extended warranty and the charge for setting it up to a wireless network, did not but Norton. The Salesman was not very happy at this and then tried to charge me full price for the printer and case (luckily I had printed my order out). It is these extras that companies make their profits on.