Clydesdale Barclays Buy Now Pay Later Change of Terms

not_loaded · 23 October 2008 at 12:48PM

I’ve done a search and can’t find anything similar on this matter.

My daughter bought some items from Jessops on a 12-month Buy Now Pay Later deal. The total purchase was £208.14. My other daughter (and my wife and I) have bought like this before, and had no problem as we have paid several weeks before the ‘end of credit holiday’ date supplied in writing, thus avoiding all charges for the credit. Also, for my daughters, I understand it all helps to boost their credit rating/status with a fully paid off, on time, credit agreement.

With four weeks to go, I just sent off (on Monday 20th) a cheque for her full amount to Barclays Partner Finance. I should mention that the original Buy Now Pay Later confirmation letter came from Clydesdale Financial Services dated 21st November 2007, saying that they were ‘name changing’ to Barclays in December 2007.

I’ve just received an ‘end of credit holiday’ letter dated Tuesday 21st from Barclays Partner Finance (it crossed mine in the post) which is virtually identical to the original Clydesdale letter from a year ago EXCEPT that in the ‘payment options available to you’ section it has a phrase added to the ‘full settlement with no interest’ paragraph, saying: “…PLUS a £29 early settlement fee…”.

Obviously I sent them a cheque for the actual amount, with no inkling that there was an early settlement fee, as it is not mentioned anywhere in the Clydesdale letter. I feel this is a material change in the original terms of the deal, especially as £29 on a amount of £208.14 is clearly an excessive charge.

Has anyone on MSE come across this type of problem? Any advice on how to proceed?

not_loaded · 29 October 2008 at 10:52AM

I’ve looked through the original paperwork for this loan and there’s no mention at all of an early settlement charge.

I suspect in these fragile banking days that Barclays Partner Finance are just trying to pull in money in any way possible.

Thinking about the phrase ‘Buy Now Pay Later’ it doesn’t make a lot of sense to state that as an offer, if exorbitant charges are automatically going to be added when you do 'pay later' before the due date.

We’re still three weeks from the due date so there’s still time to work on it.

bigstevex · 29 October 2008 at 1:52PM

slightly un-related but i noticed an awful lot of places started charges 'admin' fees for interest free credit about a year or 2 ago.

If its not on your agreement though ring them up and ask to see where it is that you have signed and agreed to it!

not_loaded · 30 October 2008 at 11:10AM

Thanks bigstevex. Yes, following the letter with the additional wording I’ve written back to say the £29 charge is nowhere to be seen. I’m obviously hoping that they will check back to their Clydesdale Financial Services era, and see that the agreement was different then.

Yesterday I googled Barclays Partner Finance and came up with dozens of disaster stories concerning Barclays Partner Finance behaving extremely badly over almost any customer issue, so it does not look promising.

Hey ho. Yet another company to strike off the list!

Birdy12 · 30 October 2008 at 12:46PM

I've come across the same problem very recently. I bought a computer from PC World and used the 'buy now, pay later' offer where I could pay the full amount within 6 months and pay no interest.

I then received a letter from HFC Bank (who are financing the offer) who stated that if I wish to repay in full before the 6 monthe period was up then I would be charged an admin fee of £25!

Naturally, being careful with cash, I 'phoned HFC Bank who said that this should be staed in the t's and c's given to me. Sure enough, it was (I didn't read the t's and c's

) but I was still annoyed that It hadn't been pointed out to me at the time of purchase.

Anyway, after a bit of an argument, the lady at HFC put me on hold and then came back and said that if I paid the full amount before the 15th December, then I wouldn't incur the fee. Where they got this date from I don't know but I'm holding them to it and took the name of the person I was speaking to.

I also 'phoned PC World and complained that this hadn't been pointed out to me. The guy on the 'phone said that the person who had originally served me was normally good at remembering to point this out...well, not in this instance! They did say that if I wanted to come in before the 28 day period and cancel the agreement and pay in full, I could, but I'm going to stick with HFC's agreement.

I've taken out various buy now pay later's before and never paid a fee...perhaps its the economic climate...

CHR15 · 30 October 2008 at 1:27PM

I wish you luck in getting the £29 waived but in the meantime, as the final date draws closer it may be worth paying the £29 and try for a refund of the money.

If you don't pay the £29, they may well claim you failed to pay in time, this would lead to a much bigger argument about interest payments incurred as it will go into the extortionate apr rate.

not_loaded · 30 October 2008 at 7:40PM

Thanks CHR15, I’m keeping an eye on the closing date.

Barclays Partner Finance were extremely quick at writing back to ask for the £29, but are now being extraordinarily slow at answering my query as to where the charge comes from.

According to my research, one of their scam tactics is to make out that they never received your letter. That’s when the letter is critical to YOU not them, of course.

I wouldn’t really expect this of a big name company like Barclays.

not_loaded · 3 November 2008 at 9:15PM

Alas, still no response to my letter asking Barclays Partner Finance to justify their £29 charge which is nowhere to be seen on the paperwork.

I’m convinced that in their Clydesdale Financial Services days the agreement was different, but obviously if they can stall long enough (till the settlement date) they will then go for punitive finance rates etc.

There’s really no excuse for not answering customer correspondence on important matters, but judging by what I’ve discovered by googling, they are well into dithering and deception.

not_loaded · 10 November 2008 at 5:44PM

Hmm…

My daughter now has a letter from them saying they ‘expect to’ write in response to her query of 27th October on the 17th November. In their small print they claim a five working day (at the worst) response time. That letter arrived eight days after the date printed on it. Thus, their estimated response date plus another eight days or so therefore puts them very comfortably into their extortionate finance period.

Well Clydesdale Financial Services now known as Barclays Partner Finance, I’m glad I sent you the £29 a week ago anticipating the underhand tactics. Recorded Delivery of course…

CHR15 · 10 November 2008 at 6:59PM

Thanks for the update

I hate it when these posts finish with no outcome.

StopWhining · 20 November 2008 at 10:51PM

Early settlement fee's should be listed under clause 5 of the agreement in the key information section.

Clydesdale Barclays Buy Now Pay Later Change of Terms

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