Non-Boaty question about UK Consumer Law.

[alant]

Why is it against the Law (according to many salespeople) to discount for cash, where the goods are offered on a zero % interest rate if they are purchased under a finance deal?
Since these zero % interest deals are obviously costing the vendor something to set up & this cost is being passed onto the purchaser, surely offering cash (& subsequent lower cost)should be an option.
We are now being blackmailed into accepting a finance deal even though we don't want one.
Why is it illegal to get goods at a lower price like this?

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[Talbot]

sounds like bo**ocks to me.

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[woody001]

Simple don't go for the deal.
Your find car dealers are often the same.

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[robp]

Don't know.
But - their own legal people might have warned them that they cannot offer "zero % interest" on goods that might be available cheaper without that deal. Because then it wouldn't effectively be zero %, there would be a cost?

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[Observer]

It's not against any law I can think of unless the cash dicount is offered and accepted with the intent that the vendor will not declare the transaction for VAT or tax purposes in which case there is question of intent to defraud C&E/Inland Revenue and I guess you could be part of a 'conspiracy to defraud'.

I think there was law that businesses could not levy a surcharge on credit card transactions but believe that's no longer applicable (the other side of that coin being a discount on cash or non-credit card transactions).

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[robp]

I think the credit card thing was, that the card transaction companies used to forbid merchants from levying charges. They were then stopped from imposing this restriction on merchants.

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[Observer]

Yes of course. Thx.

<hr width=100% size=1><A target="_blank" HREF=http://aflcharters.co.uk>Dream Dancer</A>

 

[jfm]

There's nothing illegal in discount for cash per se. But if they offer 0% credit to the masses, then discount you for cash, that renders (I think) their 0% interest statements to be untrue. That's why they wont do it. Even though, we all know that there's no such thing as 0% finance and the sofa sellers and others who do this simply discount the transaction to a finance house for 80p in the £1 or whatever.

I always ask for discount for cash if there's something I want and it's offered at 0% finance. Some shops say no, but others will try to help out by, say, recording the deal as discount for "to be discontinued item" or "very very slightly shop soiled" or sell you the sofa at full price but sell you the book case for a fiver, or whatever.

So you have to suss out if they will play ball, then be creative.

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[AlexL]

sounds like Cr*p to me. However most retail outlets (shops, car dealerships etc) get comission from the finance company on selling finance - even 0% finance (most 0% deals have a sting in the tail if you don't settle at the given time so they do make interest out of some deals) so its actually better to take the finance. You will get a much better deal on something like a car if you take the finance and then settle after a month rather than cash, as the shop has the comission to play with in the deal.
Personally I always find it easier to talk 'extras' rather than a discount. So if your buying a digi camera - get a bigger card or camera bag thrown in free, or for a TV get some extra Scart cables or a couple of free DVD's. Most shops seem to be far more receptive to giving away extras than discouting the main purchase.

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[AndrewB]

Money Laundering Regulations.

The Money Laundering Regulations which were implemented last April as part of the Proceeds of Crime Act 2002 make it illegal to accept a cash currency payment over £9,000 for goods in a single transaction, unless specially registered to do so. This doesn't include using a personal cheque or credit/debit card on the buyers own bank account in payment.

Last time I bought a car I attempted to negotiate a discount on the grounds I didn't need a finance deal. Nothing illegal about that, Retail Price Maintenance (RPM) was struck off consumer law many years ago. But the dealer laughed and said by rights he ought to increase the price, as he reckoned to make as much out of selling finance deals as the cars. Even when they are initially 0% rated, the majority of buyers will continue with the loan when interest becomes chargeable - the finance companies aren't stupid.