Home > Off Topic > Any credit specialists on the forum? |
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Alistair Member Since: 11 Feb 2011 Location: Peterborough / Bordeaux / Andorra Posts: 7939 |
Not really my area, but a few basic questions.
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10th Jun 2019 6:55pm |
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AJGalaxy2012 Member Since: 11 Jun 2018 Location: Gainsborough Posts: 1464 |
One of my businesses is an I.T. Shop. Back in 2002 I allowed someone to buy a computer and to pay us over 6 monthly instalments with zero interest charged. I had done this sort of thing a few times, not very often but I suppose at the time we had 3 or 4 such accounts active. We had a visit from the FCA and we were told in no uncertain terms we should have a license as a credit broker for any such sales, we were warned of dire consequences if we didnt comply. We have never done any such transactions since then. It may well be different for a community shop, I dont know, for me though it was bad news. BMW i3 Electric Car
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10th Jun 2019 7:10pm |
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Mr Tee Member Since: 13 Dec 2010 Location: Near Wackyjim Posts: 2653 |
There were changes to consumer credit laws a few years back, it all depends on how the debt was created. If it was an “account” , then by definition, you now require a consumer credit license. Seems daft but that’s how it is. |
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10th Jun 2019 7:40pm |
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crowebeard Member Since: 19 Dec 2016 Location: Devon Posts: 93 |
The accounts are just that, a convenience for the village residents to buy their newspapers and jaffa cakes. We ask that they are paid of before the end of the month and ask that they are settled in one payment. Charges/interest don't even come into it. I'm sure it's a bit like the milkman delivering milk and then invoicing at the end of the month (not my example, but the Citizens Advice!).
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10th Jun 2019 8:07pm |
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Mr Tee Member Since: 13 Dec 2010 Location: Near Wackyjim Posts: 2653 |
That’s the the thing, by definition, you are extending credit by allowing a balance to accrue, it’s nothing to do with interest at all sadly, seems really daft, but you can thank our glorious lawmakers for that. |
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11th Jun 2019 6:00am |
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TJH1985 Member Since: 11 Feb 2015 Location: Nottingham Posts: 664 |
I should have the FCA out to my dog walker, the guy who cleans my bins and the milk man then!
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11th Jun 2019 6:03am |
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Mr Tee Member Since: 13 Dec 2010 Location: Near Wackyjim Posts: 2653 |
Yup, it really is crackers. |
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11th Jun 2019 7:38am |
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jim4244 Member Since: 31 May 2012 Location: UK Posts: 853 |
TJH1985, we are talking about Devon though.......
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11th Jun 2019 7:39am |
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Alistair Member Since: 11 Feb 2011 Location: Peterborough / Bordeaux / Andorra Posts: 7939 |
It will very much depend on what is documented and can be provided as evidence. For example, if there’s a clause that you retain ownership until full payment has been received, then you haven’t provided credit, the person has simply taken goods and not paid.
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11th Jun 2019 9:08am |
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martinf Member Since: 26 Dec 2014 Location: sussex Posts: 256 |
A quick look at the FCA website suggests to me that there is no regulatory issue here and that the debtor is simply attempting to avoid payment.
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11th Jun 2019 9:27am |
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crowebeard Member Since: 19 Dec 2016 Location: Devon Posts: 93 |
Like you Alistair/Martin, did some research this morning and there are some exemptions that the FCA apply and the one that I think that we fall under this one:
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11th Jun 2019 11:41am |
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specman Member Since: 20 May 2010 Location: Fife Posts: 250 |
It sounds like this is a stalling method from the buyer that they have used before to cause short term confusion and delay.
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11th Jun 2019 11:50am |
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crowebeard Member Since: 19 Dec 2016 Location: Devon Posts: 93 |
Agreed specman, have given him until Friday to pay and if nothing received we wil take it to the next stage via the small claims process. David
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11th Jun 2019 12:45pm |
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cass Member Since: 12 Oct 2011 Location: northumberland Posts: 739 |
I’ve used the small claims route a couple of times, the court can get a bit funny about allowing “reasonable time” for payment after your final demand. I was advised to give a months notice in writing. |
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11th Jun 2019 12:57pm |
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