The bigger the purchase is, the greater the risk for the consumer if he or she pays in advance. It is generally not advisable to pay the full price before the merchandise is ready to be handed over and there is a possibility to examine it, or before the service has been rendered.
Advance payment entails the risk that
- the company will cease operations before the product has been delivered to the buyer.
- the consumer will lose the right to withhold payment if there is an error or delay.
If a company offers advance payment as the only method of payment, it is recommended
- that the consumer ask about other options. If the payment after receipt of the product is not possible, the use of a reasonable down payment is preferable to the advance payment of the full price. With package tours, prefabricated houses, and larger consumer contracts, the payment of a security to guarantee a deposit is stipulated in legislation.
- that the customer use a credit card. It is possible under the law to demand a refund of a payment made by credit card also from the credit provider if the company does not deliver the purchase or if there is a flaw.
The consumer is also entitled to demand remuneration from the card company for purchases made using the debit property of a payment card if the company is committed to do so in its conditions for use of the card, or otherwise.
- that the consumer considers whether or not the acquisition might be made elsewhere under more reasonable conditions.
Payment by credit
Delay in delivery
Cancellation of an order
Bankruptcy of the company
Card security (Korttiturvallisuus.fi)
Time of arrival of an invoice
A company must send an invoice to the consumer in such a way that the time between the delivery and the due date is no less than 14 days .
For a well-founded reason an exception can be made, and this time can be shorter. For instance, in so-called last-minute departures for travel, there is a justified reason for fast payment.
Compensation can be demanded for incorrect debt collection
Time of payment of a bill
Bills must be paid on the due date at the latest. If the consumer pays through a bank or the mail, the payment is seen as having occurred when the consumer has placed an order of payment. When amortizing a loan, the payment should usually be delivered to the creditor bank no later than the due date.
If a bill is not paid on the due date that is agreed upon, a breach of contract is involved, in which case the company may charge penalty interest as well as reminder fees and collecting charges. In cases of financial difficulties, the consumer should try to reach agreement with the company on payment after the due date in order to avert collection charges and other measures.
Delayed payment and collection