tag:blogger.com,1999:blog-3993498847203183398.post8003112243638787453..comments2024-03-18T12:28:29.902+00:00Comments on RevK<sup>®</sup>'s ramblings: Credit licence?RevKhttp://www.blogger.com/profile/12369263214193333422noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-3993498847203183398.post-78301795732963812512012-10-12T00:51:20.279+01:002012-10-12T00:51:20.279+01:00Yes, more info here:
http://www.cyclescheme.co.uk/...Yes, more info here:<br />http://www.cyclescheme.co.uk/employers/employer-faqs#/employers/employer-faqs/what-is-the-maximum-value-bicycle-and-safety-eq<br /><br />I set this scheme up in my workplace. Technically, the employer buys the bike and then the employee hires it for a year; at the end of that time, the employer might hypothetically choose to sell it to the employee, but they can't promise to do that, otherwise it becomes a hire purchase scheme (different tax legislation). Anyway, the government have done an exemption so that companies can buy/lease bikes up to £1000 without needing a consumer credit licence, but if you've got the licence then you could go higher.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3993498847203183398.post-39700245535480561982012-10-11T18:38:24.602+01:002012-10-11T18:38:24.602+01:00WTF, seriously?!?!?WTF, seriously?!?!?RevKhttps://www.blogger.com/profile/12369263214193333422noreply@blogger.comtag:blogger.com,1999:blog-3993498847203183398.post-55709822693422024662012-10-11T17:12:17.806+01:002012-10-11T17:12:17.806+01:00You mentioned recently that you cycle: do you run ...You mentioned recently that you cycle: do you run the "cycle to work" scheme at your company? If so, there's a fringe benefit to getting a consumer credit license, i.e. you can buy bikes that cost more than £1000.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3993498847203183398.post-34261162176971176682012-10-11T08:13:11.133+01:002012-10-11T08:13:11.133+01:00I was even thinking this before I saw your comment...I was even thinking this before I saw your comment this morning. Indeed, you would have thought so. But it is lending money (even if no interest charged at all and even if term is short - like until end of month) that is apparently the concern here!RevKhttps://www.blogger.com/profile/12369263214193333422noreply@blogger.comtag:blogger.com,1999:blog-3993498847203183398.post-57096021142809219412012-10-11T01:01:35.315+01:002012-10-11T01:01:35.315+01:00I'm rather surprised at this actually. I would...I'm rather surprised at this actually. I would have expected government regulation and such to apply if you were taking money *before* supplying, not the reverse. E.g. I would have expected the pre-pay type account situation to be more onerous in terms of complying with laws and such than post-pay. Perhaps I just have entirely the wrong end of the stick! Thank goodness I don't have any consumers as customers so far...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3993498847203183398.post-21321336763912132562012-10-10T21:11:43.438+01:002012-10-10T21:11:43.438+01:00Credit's one of those tricky things. Credit im...Credit's one of those tricky things. Credit implies extension of goods or services prior to receiving payment, so the title in those goods and services remains with you until that point. I would understand DD mandates as differing here as they're continuous payment agreements preagreed to fall on a set day of the agreed billing cycle and are either used in a prepaid or a postpaid-proforma basis (so invoice simultaneously raised with receipt of payment).<br /><br />I've never come across a DD where notification of taking of payment indicates a credit period after the invoice is received; my bills fall due on the valuation date of the DD.<br /><br />In the eyes of the Law a credit period may have a slightly different meaning, but I think it's mainly to do with the wording of the contract drawn up between merchant and customer. If you state a credit period will be provided due to a grace period between invoicing and payment, you're extending credit. If the invoice is reactively produced based upon debiting of the amount (fixed or varying, as per DD scheme) this is agreed by the customer and is more akin to a subscription where the amount due may vary based upon usage in that cycle, and all covered by the DD guarantee with regards to chargebacks for erroneous payments taken.<br /><br />Semantics, but as you likely know based upon your own supplier agreements a true credit account extends an unguaranteed and preagreed credit limit with no warranty that the customer will ever pay the amount due... A world of hurt and risk. With DD, the customer's already agreed that any charges levied are fair and appropriate unless they explicitly challenge a transaction.<br /><br /><br />... That's my abridged take on it. I'm probably just as confused as you, I just sound convincing. ;-)Christopher Woodshttps://www.blogger.com/profile/18331177480437499943noreply@blogger.com