Credit Card Customers Survive Osborne Crash
Sydney Morning Herald
Tuesday August 22, 1995
Credit card customers who made substantial prepayments to Osborne Computers but did not receive their goods before the company collapsed, have survived the crash far better than those who paid by cash or cheque.
Many consumers remain ignorant of the fact that credit cards offer greater protection than other forms of payment.
Most of the 600 customers who prepaid about $3,000 each by credit card have had the money refunded by their bank or other financial institution after being urged to contact the card issuers by the Department of Consumer Affairs.
Hundreds of others who paid a total $1.7 million by cheque or cash are not so lucky.
They will have to decide whether to accept an offer of a refund of 60 per cent of the value of the PC they bought or face a long delay before delivery of the goods.
Although Gateway 2000 and Micronics, the new owners of the company, hope to make as many deliveries as possible before Christmas, they have up to two years in which to do so.
The Department of Consumer Affairs said about 1,100 customers registered their details after the company's collapse.
The NSW Minister for Consumer Affairs, Mrs Lo Po, said yesterday: "We believe the vast majority of consumers who paid by credit card have obtained a charge-back. I would urge those who might not yet have sought one to do so."
Credit card customers are often unaware that they are entitled to a charge-back, or refund, for the non-receipt of goods and services - and banks do little to draw their attention to this fact.
Under credit card charge-back rules, customers can request a refund from the bank that issued the card if they fail to receive the goods or services.
However, cardholders must do this within a certain time, usually 90 to 120 days from the date of the transaction, depending on the type of card. While Visa and Bankcard set a claim limit of 90 days, MasterCard allows for 120 days.
Full report Page 33.
© 1995 Sydney Morning Herald
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