Your Rights When Using Store Cards

Store cards are usually offered at the tills of a store and it only takes a few minutes for the application form to be filled out, submitted and accepted. Many people are drawn into signing up for store cards (which can only be used within a particular store or a handful of associated stores) because retailers tend to offer discounts on items that are purchased directly after receiving the card but one this initial purchase has been made, store card owners will go back to paying exactly the same amount as everyone else.

Store Cards VS Credit Cards

Store cards differ from credit cards because they cannot be used to purchase items from just about anywhere. The holder of a store card will be limited in his or her choice of stores and the limit on a store card is usually lower than that of a credit card. One of the biggest and most hotly debated differences between store and credit cards is the fact that store cards have a much higher APR than credit cards and individuals can quickly find themselves in more debt than they expected when they signed up for it, especially if they do not pay their monthly installments each month. The credit on store cards is not provided by the store itself but usually by an outside financial credit provider.

Your Rights in the Event of a Breach of Contract

In the event that you purchase faulty goods or the retailer does not abide to the terms of the agreed contract, you can lay a complaint with the financial credit provider that provides the credit for the store card. You will need to find out what credit provider is responsible for your store card, however, in order to direct your claim to the correct company.

You should only lay a complaint with the credit provider once you have contacted the retailer and explained the problem. If the retailer has gone out of business, or refuses to reimburse you, you can then move on to contacting the credit provider.

The Financial Ombudsman Service

If both the retailer and credit provider fail to reimburse you, you can lay a complaint with the financial ombudsman service and they will deal with your complaint. Laying a complaint is free of charge and so it will not cost you anything to turn to a third party to assist you in solving your problem.

Going to Court

If the financial ombudsman service refuses to rule in your favor you can always take the matter to court. This is a step that should be avoided because it can be very costly and there is no assurance that you will win the case but it might be a good idea if you are certain that you have been wronged.

Understand your Rights

Understanding your rights as a consumer will assist you in taking measures in the event that you are wronged by a retailer, supplier or manufacturer that has breached a contract and refuses to right the wrong that they have committed.