Credit price for goods more than cash price

A question about : Credit price for goods more than cash price

Hi thanks for reading, I was doing a small business course a few years ago and was told on it if you offer goods for sale you cannot charge more for it if it is sold on credit than the cash price you are offering it for sale at i.e

If you are selling a TV for a cash price of Ј100 or

if you want it on credit it would be Ј120 plus interest on top of the Ј120 is this right?

Tom

Best answers:

• I think you can charge what you like providing its not advertised as 0% credit, that would be the illegal bit. In that case a retailer can't discount as it is no longer 0%.
• It would be odd but I don't see the problem if all the costs are upfront.
  Why did you ask, is there an example you can post?
• The only thing i would say is if the company is offering credit on its own back then it must have a Consumer Credit licence
• Am I missing something here? Car insurance companies do this all the time. Cheaper to pay in full up front than to pay using credit
• There are costs involved in offering credit, these can be passed to the customer, just like credit cards.
  But as said above they can not call it interest free credit. If you go into one of the big interest free furniture retailers for instance and ask for a discount for cash they are not allowed to do it, I know I tried and the salesman told me it was illegal.
• Maybe I'm misreading the OP, but there are plenty of cases where companies will charge a %age extra for paying by credit card.
• Is it Ј120 regular/list price (which you'll pay if you take credit) and Ј20 cash DISCOUNT?
• Hi the question came about from looking at a pay weekly shop set up by my local credit union to rival the likes of brighthouse, pay as you view etc.
  There brochure:
  https://durham.sbstore.org/deal?dealid=800
  states a cash price of (bed used as an example)
  Cash Price Ј454.99
  Total Cost for Credit Ј549.99
  Number of Weeks 104
  APR 24.19%
  Savings Ј26.00
  Weekly Price Ј6.93
  Total Payable Ј720.72
  This to me is wrong as the cash price is the cost of the goods plus a profit (or they wouldn't be in business long) whereas the credit price is a bigger profit plus profit (or at least costs offset) from the interest