28 Degree Card Insurance and Mobile Phone Plan

ericeric on 17/01/2021 - 14:07

Hi Guys,

Optus or Vodafone offers to buy a mobile phone from them on 12/24/36 months interest-free terms,

Question: if the monthly instalment is paid by 28-degree card, will credit card insurance still applies to the Mobile Phone? And how it works?

If the mobile price is $2400 on a 24-month term. In month #6, you would have only paid $600. At that point, if the market price of the phone reduces to $2000, can you claim price protection? of if the phone is stolen, can you claim merchandise protection?

Thanks in advance.

Financial

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Comments

  • wallet72 on 17/01/2021 - 14:39

    I don't think it works like that. I don't think they class it as a purchase until the while thing is paid.

    You'd be better off buying the phone using the card outright, then in 11 months make a price guarantee claim.

    • ericeric on 18/01/2021 - 12:15

      Thanks for your reply.

      Only thinking of this as want to take advantage of interest free offers.

      Product PDS does not say item need to be paid in one go.

  • Morien on 17/01/2021 - 14:41

    You will need to check the PDS to check for sure, however I don't think so.

    Price protection: no. It wouldn't be a single purchase. It would be 24 purchases.
    In the scenario that you suggest, in month 6 you have paid $600 (in instalments). So you have paid 25% of the purchase price on the credit card. IF they were to count all of the paid instalments as a single purchase (big IF) and give you the reduction, you would only get 25% of the reduction, which in your example would be $100. If you were to try to make another claim on it later down the track, the price you paid, the date you paid it, and the % you had paid on card would all be different, and I'd think would be rejected on the basis that the details do not match.
    You can always double check, but I would think it is a dead "no".

    Merchandise protection: no. Also because it wouldn't be a single purchase. It would be 24 purchases.

    I'd go as far to think that they would only view it as you having used the card to pay a single instalment of that product. So any claim benefit would be to 1/24th of the total cost.

    YMMV, but the point of the insurance is to get you to use your card on big purchases. The benefit to you is that you get the price protection and merchandise protection. The benefit to them if that if you don't pay on time they charge you interest. Your idea is all win for you, no win for them.

    • MeesusEff on 17/01/2021 - 16:56
      +1

      I've actually used the 28D Merchandise protection for my husbands phone, 4 months into his plan as he cracked the screen. The screen repair was less than the 4x monthly plan fee, I sent in the quote to repair and they approved it. This was 3? (year of Samsung 8 release) years ago so YMMV.

      • Morien on 17/01/2021 - 21:39

        Good to know. Thanks

      • ericeric on 18/01/2021 - 12:13

        Product PDS does not say item need to be paid in one go.

        Guess if you pay all you lay-by payment for items will be considered as purchase as well

  • khell on 17/01/2021 - 14:49
    +3

    Short answer: No.

    Long answer: No. This is a subscription. Subscriptions are not covered under price protection.

    • ericeric on 18/01/2021 - 12:11

      I am not sure if interest free payment installment is a subscription.

      Product PDS does not say item need to be paid in one go.

  • EightImmortals on 17/01/2021 - 14:59
    -2

    No.

    Price protection is only 30 days or so after initial purchase (I think). And $2400 for mobile phone, does it call Jesus?

    • mitch01 on 17/01/2021 - 16:25
      +4

      It's a year.

      • MeesusEff on 17/01/2021 - 17:04
        +2

        Not sure why you got down voted but you are right, it used to be 6 months and then it got upped to a year for both PP & MP

      • EightImmortals on 18/01/2021 - 08:42
        +1

        Thanks for the correction, it was my other card I was thinking of (and it was 3 months). :)

  • kawinuyo on 17/01/2021 - 18:15
    +2

    Also as some people have asked before. The protection has been Grandfathered, so you will want to make sure you already have it before relying on this for any sort of price protection. But yes as others have said above in this particular case it wouldn't apply anyway.

  • AndyC1 on 17/01/2021 - 20:00

    PDS.

  • rxjb on 18/01/2021 - 09:26

    Do you need to pay the shopper protection premium to get this?

    • stirlo on 18/01/2021 - 09:47
      +2

      You always do but this insurance is no longer available to new cardholders.

      • rxjb on 18/01/2021 - 10:59

        I have held this card for 10 + years but the PDS on the website notes that the current card has this protection as well?

        • stirlo on 18/01/2021 - 11:48
          +1

          The PDS applies to the "Shopper’s Protection" product which is no longer available to new card holders, existing cardholders can still access the benefits in the PDS but if you apply for a new card you are not able to add the Shopper’s Protection product to your account.

          Also note that the Shopper’s Protection premium can be $0 if you pay your balance in full prior to the statement being issued. This is because the premium is 1% of the balance on the day the statement is issued, nothing stops you spending $2k, depositing $2k and having a balance of $0 getting and the benefits for free.

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