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Thread: Buying my Motability car - payment

  1. #1
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    Buying my Motability car - payment

    I rang today to ask about how to make the payment for my Motability car at the end of the lease. The letter I have says I can pay for Credit card, Debit card or bank/building society draft.
    The credit limit on my credit card isn't high enough to cover the entire cost of the car so I asked if my husband and I could each pay half on our individual cards. This way, the money comes out of our bank account at the end of the month. Motability however, will not allow this and the system only allows for payment to be taken. This seems so outdated now. How many disabled people can get a high enough credit limit on their credit card account when they need to rely on benefits to top up their various pensions and other income?
    I am in a position to pay for the car and will pay with my debit card because it's such a hassle to get to my bank for a bankers draft. However, I'd feel much more secure with a purchase of this amount if I had been able to pay with my credit card. Sorry about the moan.

    Teri

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    Senior Member firebird's Avatar
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    Have you asked your credit card provider if they could increase your limit? When I applied for a Tesco credit card it came with £5000 credit limit! I cut it up! I didn't want the responsibility of that amount of money being available to all and sundry if I lost it! We have paid for cars and caravans using debit cards, everything progressed securely and they do have protections available similar to using a credit card. Enjoy your car.

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    Thank you for the info re the debit cards. It's just one of those things. Everything is so inflexible these days. I have tried to extend the limit in the past and was refused even though I have no debt and always pay the card off in full via the bank each month.

    Teri

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    Quote Originally Posted by firebird View Post
    Have you asked your credit card provider if they could increase your limit? When I applied for a Tesco credit card it came with £5000 credit limit! I cut it up! I didn't want the responsibility of that amount of money being available to all and sundry if I lost it!
    Sections 83 and 84 of the Consumer Credit Act 1974 (as amended) have the effect of limiting the cardholder's liability for misuse of a credit card to £50 in most scenarios and to nil once the card is reported loss or stolen. The main exception is misuse with the cardholder's consent, for which the cardholder is fully liable.

    The exception in s. 84(3A) of the 1974 Act for distance selling contracts is because regulation 21 of The Consumer Protection (Distance Selling) Regulations 2000 (SI 2000/2334) provides more specific remedies for misuse of all consumer payment cards (not just credit cards), giving the right to cancel fraudulent transactions for a full refund.

    The exception in s. 84(3C) of the 1974 Act for distance selling of financial products is because regulation 14 of The Financial Services (Distance Marketing) Regulations 2004 (SI 2004/2095) provides more specific remedies for misuse of all consumer payment cards (not just credit cards) in conjunction with these contracts, giving the right to cancel fraudulent transactions for a full refund.

    Overall, the Consumer Credit Act 1974 gives much stronger protection for misuse of a credit card than you have for a lost or stolen debit card or charge card (where you have to pay the entire bill each month).


    These days, credit card providers are usually happy to reduce a credit limit on request.

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    Quote Originally Posted by Teri View Post
    I am in a position to pay for the car and will pay with my debit card because it's such a hassle to get to my bank for a bankers draft. However, I'd feel much more secure with a purchase of this amount if I had been able to pay with my credit card.
    It's a shame that Motability won't let you part pay using your credit card, as that way the card provider would be jointly liable with Motability for the transaction under section 75 of the Consumer Credit Act 1974. However, this is really academic, as Motability are unlikely to disappear in the event something goes wrong with the purchase.


    Card providers are sometimes willing to give a temporary increase in credit limit, but lending decisions across the board are getting much tougher. I have two separate credit cards with my bank - a Visa card with a £6000 limit and a Mastercard with a £3250 limit. The Visa card dates back to my student days before I fell ill, the Mastercard was granted when I was left without a usable card one day some years ago following a problem affecting all Visa cards issued by that bank (my debit card is also a Visa card).

    I'm in the fortunate position of only ever borrowing money on the credit cards outside the interest free period on a handful of occasions, and never for more than one month, even when I was a student. I treat money spent on a credit card as spent immediately. I use the credit cards for the additional consumer protection they give, the knowledge that I won't lose temporarily lose access to my current account if there is any fraud (not necessarily the case if a debit card is lost or stolen) and so that I don't have to remember exactly when in the month my benefits hit my account.



    Post 2008 all the credit providers seem to have got much tougher in their lending policies. It is possible to have too good a repayment history these days. Card providers can make most money using their available funds to lend to customers who repay each month but not in full. Customers like me who want a high limit for occasional large purchases but who repay in full each month make the card provider much less money.

    My mother, who is still doing some self-employed work at 69, applied for an M&S credit card a couple of years ago when she needed to travel abroad on business. Prior to this, she only had one credit card which had been declined whilst abroad on a previous trip due to the issuer's over-sensitive anti-fraud measures. This left her sitting in a hotel lobby in the middle of the night without being able to check in. Though Mum had no problem qualifying for the M&S card, she is still stuck with the low initial credit limit which is insufficient to make the M&S card her primary card. She's had this card for nearly two years now and has asked for a higher limit on several occasions, but the answer has always been that they're unable to offer her a higher limit at this time. It seems that the underlying provider (part of HSBC) wishes to limit the credit it grants to those who don't pay any interest.


    As I repay in full each month, it would make more sense for me to have a cashback credit card as I don't get any cashback or loyalty rewards from either of the cards I have. When the Mastercard is replaced, it will be replaced with a Visa card, so I'll finish up with two Visa credit cards and a Visa debit card all from the same bank. Neither credit card has contactless support, either.

    The only good things about the two credit cards I have is that they are two separate accounts with statement dates almost exactly half a month apart, allowing me to route spending to the card with the longest interest free period. Two separate accounts, along with not using my debit card for routine spending, is a helpful defence mechanism against card fraud.


    Though I'm very security conscious, I have been subject to card fraud three times over the years.

    The first time was someone taking a US$1500 cash advance from a bank in New York State - I suspect this was an inside job, as the person who went to the bank counter should have had to produce photo ID for the transaction. Both my driving licence and passport were in my possession and my transactions showed I was clearly in London at the time.

    The second time was when a bent telesales employee at a company I deal with recorded the details to pass to his associates. He was subsequently caught and the company apologised to all affected customers. Any losses the bank didn't recover from that second fraud were really down to their own stupidity. I spotted the small 'tester' transaction using online banking and called to cancel the card as I was convinced it was no mere mistake. The bank's security department refused to cancel the card when they could have limited any losses to the few pounds of the tester transaction. It was only when that card was hit with thousands of pounds worth of transactions a couple of days later that the bank changed its mind and cancelled the card.

    The third time was when the bank cancelled one of my cards because it had been used at a Shell garage during the period of the security breach a few years ago. There was no actual fraud on this occasion, but I supported the bank's cautious approach.


    I looked at trying to replace one of my credit cards with a Mastercard or American Express cashback card from a provider other than my bank earlier this year and got nowhere. Not being in employment is an instant barrier to the sort of card I want, not helped by the fact that very few cashback credit cards remain in the market. Unless I was prepared to move my current account to Halifax (which I'm not), the best option would have been American Express Platinum cashback, but they won't even consider people of working age who are not employed. The next best option, which isn't strictly cashback, would be the Amazon.co.uk Mastercard - I may try applying for that.

    If I didn't already have a credit card, I doubt I'd qualify for anything other than a sub prime card - the sort that typically give you a £500 credit limit at an APR of over 40% to start with. My bank are so desperate for me to borrow on my cards that the long term interest rate on the Mastercard is 14.9% APR, though I won't be tempted.

  6. #6
    Senior Member Lighttouch's Avatar
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    I wonder if Motability would accept a Bank Credit Transfer which you could arrange over the phone or online.

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    Motability are very specific in what they will accept - Credit or Debit card or a bank/building society draft to be cleared one week before my contract ends. It's not a problem really but it does mean that I need to get enough money into my bank account before that date to make sure the debit card payment goes through OK. This means picking a time when I am feeling well enough to get dropped off at my bank and building Society then deposit the money into the relevant bank for the debit card payment. I did ask my credit card company if I could deposit the money into the credit card account so that there was enough money to cover the payment but that is not allowed as I would still be spending over my monthly credit limit even though the whole amount would already be in the account. It's crazy.

    Teri

  8. #8
    Senior Member Lighttouch's Avatar
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    Quote Originally Posted by Teri View Post
    Motability are very specific in what they will accept - Credit or Debit card or a bank/building society draft to be cleared one week before my contract ends. It's not a problem really but it does mean that I need to get enough money into my bank account before that date to make sure the debit card payment goes through OK. This means picking a time when I am feeling well enough to get dropped off at my bank and building Society then deposit the money into the relevant bank for the debit card payment. I did ask my credit card company if I could deposit the money into the credit card account so that there was enough money to cover the payment but that is not allowed as I would still be spending over my monthly credit limit even though the whole amount would already be in the account. It's crazy.

    Teri
    Hi Teri,

    I find it very frustrating when suppliers ask you to mail a cheque to them. Youhave the hassle of buying envelopes, stamps, writing a covering letter then mailing it off - very time consuming and not using digital technology to it's best advantage.

    If I need to hire a trades person the last thing I ask is if they will accept a bank credit transfer. Initially they are sceptical and a bit reluctant and prefer cash. As I don't have a chequebook and I don't pay in cash they either agree or they're on their way.

    But they are amazed if they take up my offer as the money exchanges hands instantly - no hassle.

    People need to understand there are many ways to digitally pay someone via Bitcoins, Paypal, contactless cards for small amounts under £20.

    I use a Santander 123 current account as they pay interest of 3% before tax on balances up to £20k - It's better than most cash ISAs. They also give cash rewards of 3% on utility bills, petrol and all sorts using either acredit or debit card. They even paid me a £100 to join them.

    Switching bank accounts is very painless these days. They do all the donkey work of contacting the Direct Debit contacts and it's all done and dusted within a working week.

    Re car purchase. It looks like you are running out of options = the banker's draft looks like the best option.

  9. #9
    Senior Member Kodiak's Avatar
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    Quote Originally Posted by Teri View Post
    I rang today to ask about how to make the payment for my Motability car at the end of the lease. The letter I have says I can pay for Credit card, Debit card or bank/building society draft.
    The credit limit on my credit card isn't high enough to cover the entire cost of the car so I asked if my husband and I could each pay half on our individual cards. This way, the money comes out of our bank account at the end of the month. Motability however, will not allow this and the system only allows for payment to be taken. This seems so outdated now. How many disabled people can get a high enough credit limit on their credit card account when they need to rely on benefits to top up their various pensions and other income?
    I am in a position to pay for the car and will pay with my debit card because it's such a hassle to get to my bank for a bankers draft. However, I'd feel much more secure with a purchase of this amount if I had been able to pay with my credit card. Sorry about the moan.Teri
    If you really want to pay by your Credit Card and not your debit Card then there is an answer.

    As an example, say you have £5K Limit available on your Credit Card but you wish to £8K. What to do is to Pay £3K to your Credit Card making it £3K in Credit. This then means you will have a Spending power of £8K on your Credit Card and you will then be able to make a £8K Payment using your Credit Card.

    Personally I would prefer to pay by Debit Card as this means you will not be paying any Credit Card Interest.
    Deep into that darkness peering, long I stood there, wondering, fearing, doubting, dreaming dreams no mortal ever dared to dream before.
    Edgar Allen Poe

  10. #10
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    I would ask to split the amount.

    £100+ on your credit card
    +
    £the remaining on your debit card.

    That way you are paying them as they have requested - you aren't using someone else's card, plus you get the protection the Flymo states above.
    Motability Car History
    05/09-05/12; Nissan Qashqai 1.5 Diesel Tekna; 36,500 miles; avg 41.1mpg
    06/12-07/15; Ford C-Max 2.0 Diesel Titanium Powershift; 35,400 miles; avg 37.8mpg
    07/15-09/17; Skoda Octavia 1.6 Diesel SE-L DSG; 28,200miles; avg 43.9mpg
    09/17-Present; VW Touran 1.4 Petrol SEL DSG; 11,600miles; avg 35.9mpg (28.6 - 43.9mpg)

    Click here to send me an email with any private Motoring questions you may have. Replies usually within 48hrs

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