IPPs offer cardholders the convenience of paying for certain large purchases such as gym memberships, magazine subscriptions or household goods, over an extended period of up to 36 months.
Even though you are paying by instalment, your bank will make full payment of the purchase price on your behalf to the merchant when the agreement is signed by you. Therefore, you remain liable to repay the monthly instalments to your bank unless the merchant agrees to terminate the IPP and refund the bank. You are not able to terminate IPPs on the basis that you no longer receive the services or no longer wish to continue with the services provided by the merchant.
In the event that the merchant ceases operations and you are unable to reach a resolution with the merchant, you may approach your card-issuing bank for assistance to raise a chargeback against the merchant. However, depending on your agreement with your card-issuing bank, you may not be able to claim any losses. On a best effort basis, your bank will attempt to recover on your behalf from the closed merchant. Failing which, the bank may refer you to the liquidators of the merchant or CASE for assistance.
Before signing up for IPPs, cardholders are advised to:
a. Deal with reputable merchants accredited under EduTrust or CaseTrust accreditation scheme which offer prepayment protection;
b. Check the CASE’ website at https://www.case.org.sg/consumeralertlist.aspx to see if there has been any complaints against the merchant or particular industry;
c. Read the merchant’s terms and conditions to ascertain whether there is any policy on returned goods or termination of services;
d. Find out the merchant’s terms and conditions on delivery fulfillment for goods or services; and
e. Read and understand the card-issuing bank’s terms and conditions for IPPs