A potentially interesting development from Curve…
As long as they actually do something correctly and don’t mess it up!
Ah yes adding my credit card to curve and then paying curve back instead of my credit card, but with no S75 protection. Smashing feature!
Don’t they have Customer Protection up to £100k (I have no idea what’s actually protected), isn’t that something similar to section 75?
According to social media (!) this isn’t worth the web page it’s printed on - lots of complaints about having to go though the Mastercard chargeback process with interminable delays.
Curve credit is a good idea that they’ve been working on for a long time (and may well be very lucrative if they tie it in to open banking and push a loan that is at a lower rate than your credit card APR) but it’s missing Klarna’s pre-purchase guarantee that you’ll be accepted for a loan. They’re expecting people to purchase in the hope they get the Curve offer, which might limit uptake.
Section 75 is legal protection vs Curve Customer Protection which is a contractual agreement between you and Curve. i.e. it’s an issue with the regulator when S.75 isn’t upheld but it’s on you to take Curve to court if you fall in the scope of their customer protection
Not worth the page it’s written on!
In theory, aren’t you essentially paying for something with curve credit and then paying curve back in instalments from your credit card. So section 75 would still apply directly with Curve, just not with the repayments from your credit card?
Edit: never mind. the screenshot shows the credit applying after the fact. essentially making this a loan? Again. Confusing.
TBH, the splash page makes it sound a bit confusing and isn’t clear on exactly how it will work or the rules surrounding it.
These are very murky waters and the lines are getting blurry, which is only going to complicate the rules surrounding such a product. That alone makes me not want to touch it. Confusing.
Let me explain it as best as I can.
Section 75 covers a merchant agreement with a customer. It ensures that the credit card company has equal liability with the merchant, to make sure people don’t get into debt for items they never receive or are described in a way that isn’t accurate.
It doesn’t apply when using a third party processor. Basically, you have to be paying for the goods directly.
You aren’t covered with PayPal (in circumstances where you have to have an account) due to you technically paying PayPal for quasi-cash and then PayPal transferring the money to the merchant for the service.
In the same way, you are paying Curve for e-money and Curve are using MasterCard to faciliate the final leg of the journey from your credit card to the merchant.
You can’t claim S75 against Curve because you never had an agreement with them to provide the merchandise. You have to rely on Curve to help you and frankly, it isn’t good enough.
Also as Curve Credit is essentially providing an after-the-fact loan.
Also to mention S75 doesn’t apply when you get refunded to your credit card and then use a credit balance. You should always have any excess balance refunded to your bank
Thank you for explaining! I’m aware of how Section 75 works, and how and when it does or does not apply.
But in regards to Curve’s product, on the surface it looked like it would apply, perhaps because of their name. It feels like a rather misleading product to me, and I can envision people ending up in a tricky situation in the future when they find out the hard way that they have no Section 75 protections, because of the way it works.
Better to just stick to using a credit card. Or PayPal Credit has similar interest free periods and offers, but with Section 75 protections.
If I’m being honest, I’ve never really understood the point of Curve, and I feel the same about this product too.
PayPal Credit is okay because it’s a specific credit product that is for a specific item and has protections that accompany traditional credit products as a result. they also typically only work with brands that are trustworthy, thankfully
The details of how Curve Credit works are not available yet, but it’s not beyond the realms of possibility that you will get Section 75 protection on all purchases just as if you used your credit card directly.
The reason you don’t get Section 75 protection today is because there’s no direct link between the retailer and your funding card issuer. Curve breaks that link. They pay the retailer, and you effectively buy the equivalent amount of e-money from Curve using your funding card to enable them to do so.
But if Curve issue credit to enable us to complete a purchase they may be bound by the Consumer Credit Act which means they’ll then become jointly liable to provide section 75. Whether we settle that credit immediately, or over a period using some sort of Curve Credit instalment plan, we’re just using our funding card to settle up with Curve. So while we won’t have recourse to our funding card for S75, we may have to Curve as they provide the credit facilities. It might also mean you’ll get Section 75 on those purchases funded by your debit card.
As I say… we don’t know the details of how it will work yet. But it’s an interesting proposition nonetheless.
I think they are issuing credit only after the purchase completes - you can’t do it before or as the item is purchased.
If that is correct to my understanding as you’re not paying for the item, you would be S75 free.
I doubt Curve wants to go near any statutory protection for customers… would cut into their bottom line that they don’t have!
It looks that way. That makes it seem like a niche product. If I wanted to spread the cost of something why would I let my card get charged first and have to wait a few days for it to be reversed/refunded. It’s more like (as they advertise it) Go Back in Time, when you want to spread the cost after the fact.
Has anyone tried this yet? Seems to be similar to Tymit except there’s quite a lot of restrictions on what you can buy, like no flights or foreign transactions.
I don’t believe it’s been launched yet for consumers. It’s in beta for business customers according to an email/survey I received on 17th February last month: