The CC Guarantee

[enaid]

This is a good thing about Credit Cards, if you spend over £100 and you don't get your goods or they are faulty you can claim your money back from the CC company.
So supposing I bought a suit from MFI 3 weeks ago, paid in full on my CC. Where is the money now?
Is it still with the CC company?
Or do in fact MFI have it?
If in fact MFI have my money, then how can the CC company afford to just give me my money back?
I was just thinking, because as things are today a lot more firms may not survive, leaving the CC companies paying a lot of money out. Can anyone explain how they recoup this money, if indeed they do. Or do they not lose any money in the first place?
Enaid x :grinningelf:

[StoneLaughter]

Re: The CC Guarantee

The CC guarantee is there so that the credit card can pursue the debt, relieving the consumer of the burden of litigation. You get your money back instantly, from the CC company; they then pursue the retailer or whatever for the money.

[enaid]

Re: The CC Guarantee

The CC guarantee is there so that the credit card can pursue the debt, relieving the consumer of the burden of litigation. You get your money back instantly, from the CC company; they then pursue the retailer or whatever for the money.

Oh I see and what happens if the retailer is skint ?
This is what I am trying to understand, as so many companies seem to be going belly up. How do the CC's get the money back from them?
Do the CC companies suffer the loss? and if so how can they afford to?

[Paule]

Re: The CC Guarantee

So supposing I bought a suit from MFI 3 weeks ago

No wonder they went bust, they should have stuck to furniture....lol ;-)

[Sapphire]

Re: The CC Guarantee

Perhaps it was made from MDF or Formica msl:

[StoneLaughter]

Re: The CC Guarantee

Oh I see and what happens if the retailer is skint ?
This is what I am trying to understand, as so many companies seem to be going belly up. How do the CC's get the money back from them?
Do the CC companies suffer the loss? and if so how can they afford to?

They either (a) can afford to because they make so much cash in other ways, or (b) they persue the Receivers when a company goes belly-up.

To be honest I'm guessing; I have no real knowledge on this - but I can guarantee that the CC company will NOT let it go/write off the money unless they have absolutely zero alternatives.