How £500 became nothing.

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  • alfablue
    alfablue Posts: 8,497
    RedAende wrote:
    "also have a feeling that its not legal for these firms to charge interest on the loan, or it makes the government scheme invalid, something like that. Its all tied in to avoiding the consumer credit act although I could easily be wrong on this (usually am ) "

    Any company can lend £1000.

    To lend £1001 that company then needs a credit lending licence of sorts, hence C2W tends to have a £1000 limit. Not sure how that works when a co. gives another co. 60/90 days payment terms, guess it just applies to "consumers"


    Also most schemes charge your LBS 10% of retail hence it is unfair to expect LBS to sell discounted bikes at a loss.

    My company decided not to join, some health and safety bollocks about their liability if staff are injured in a road traffic accident.

    I think the legal concern is for them to charge interest under the Cycle to Work scheme, as the arrangement has to be one of the employee hiring the bike, not buying it on a loan.

    As for the 10%, I contacted Spa Cycles about buying a bike under the scheme, and they said they would add 12.5% to the (admitedly reasonable) price - so if Cyclescheme charge 10% of the sale price, then Spa are adding on an extra 2.5% :( Maybe they have other associated costs, but I was a bit dissappointed as this pushed the Ultra Galaxy over the £1000 limit.

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