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  • FIRST POST
    • Automaton
    • By Automaton 13th Jun 17, 12:32 AM
    • 8Posts
    • 1Thanks
    Automaton
    Can anyone help me understand this specific Buy Now Pay Later financing option?
    • #1
    • 13th Jun 17, 12:32 AM
    Can anyone help me understand this specific Buy Now Pay Later financing option? 13th Jun 17 at 12:32 AM
    I've looked all over the internet for info on this, but the wording on the website I'm using has me worried. I was wondering if anyone could help me with the financing options for scan.co.uk.

    The problem is that on the checkout page it words it differently to how it does on their page where they explain their finance options, and the way they explain it on the checkout page makes it seem like there are monthly payments before the 9 month payment-free period is up. Here is what it says on the finance page:

    "BUY NOW PAY LATER (9 MONTHS / 39)
    After a 10% deposit pay nothing for 9 months"
    "This is a Buy Now Pay Later agreement. Customers will initially only have to pay a 10% deposit, with the original loan amount payable in the 9th month, in order to incur no interest charges."

    As you can see, from this, it makes it seem like you pay the 10% deposit, then pay nothing at all for up to 9 months, and then as long as you pay all the other 90% off you won't have to pay any more.

    However, here is what it says on the checkout page:

    "Buy Now Pay Later (9 Months / 39) 19.9%
    Pay a deposit of £75.87 (10%) then 39 monthly instalments of £26.36. No interest charges will be incurred if the loan amount is paid within 9 months."

    From this, it makes it seem like you pay the 10% deposit, and then straight away have to start off with monthly payments.

    Can anyone that's used Scan before confirm whether or not it's a true payment-free period with no monthly payments, and the 39 monthly payments it mentions are only for after the 9 month payment-free period? I have emailed them before to ask about it, and they simply linked me to their finance page and said to call them up if I didn't understand.
Page 1
    • Ben8282
    • By Ben8282 13th Jun 17, 5:54 AM
    • 1,913 Posts
    • 831 Thanks
    Ben8282
    • #2
    • 13th Jun 17, 5:54 AM
    • #2
    • 13th Jun 17, 5:54 AM
    I have read https://www.scan.co.uk/info/finance
    It is stated very clearly that there is nothing to pay for 9 months.
    However, I accept that it is somewhat unclear as it doesn't actually say when the repayments will start. I think it would be reasonable to assume that the repayments will start in the 10th month, but the whole thing is badly written.
    • bengalknights
    • By bengalknights 13th Jun 17, 9:03 AM
    • 3,995 Posts
    • 1,461 Thanks
    bengalknights
    • #3
    • 13th Jun 17, 9:03 AM
    • #3
    • 13th Jun 17, 9:03 AM
    Its definitly pay nothing for 9 months after which the agreement begins.
    • BrassicWoman
    • By BrassicWoman 13th Jun 17, 9:44 AM
    • 1,205 Posts
    • 4,841 Thanks
    BrassicWoman
    • #4
    • 13th Jun 17, 9:44 AM
    • #4
    • 13th Jun 17, 9:44 AM
    the checkout page describes what happens at month 10 if the loan is not settled.
    May GC £215/£50 (oops)
    April 2016 GC: £24.09/ £20
    • Alderbank
    • By Alderbank 13th Jun 17, 10:31 AM
    • 85 Posts
    • 83 Thanks
    Alderbank
    • #5
    • 13th Jun 17, 10:31 AM
    • #5
    • 13th Jun 17, 10:31 AM
    I have read https://www.scan.co.uk/info/finance
    It is stated very clearly that there is nothing to pay for 9 months.
    However, I accept that it is somewhat unclear as it doesn't actually say when the repayments will start. I think it would be reasonable to assume that the repayments will start in the 10th month, but the whole thing is badly written.
    Originally posted by Ben8282
    It's not badly written from their point of view. It is written very carefully to deceive.

    It is stated very clearly that the original loan amount must be paid in the 9th month, in order to incur no interest charges - in other words the full balance of £533.50 must be paid in the 9th month. On the first day of the 10th month the total payable becomes £894.54 and will continue to rise.

    They send no reminders about the date. They know that some users will misunderstand how it works and think payment only starts after 9 months, and many more will forget about repayment until a helpful letter arrives in the 10th month reminding them that £894.54 is now due.

    PS it's not new. I remember sofa sellers using this trick 30 years ago
    • tonyh66
    • By tonyh66 13th Jun 17, 10:33 AM
    • 963 Posts
    • 706 Thanks
    tonyh66
    • #6
    • 13th Jun 17, 10:33 AM
    • #6
    • 13th Jun 17, 10:33 AM
    as long as you pay it off in month 9 there will be no interest to pay, monthly payments start month 10 and include interest, just pay it off in M9 and you will have no problems
    • Brock_and_Roll
    • By Brock_and_Roll 13th Jun 17, 1:38 PM
    • 743 Posts
    • 708 Thanks
    Brock_and_Roll
    • #7
    • 13th Jun 17, 1:38 PM
    • #7
    • 13th Jun 17, 1:38 PM
    Frankly, with interest rates at present levels, I cant see the benefit of even taking up this offer and running the risk that your either forget or otherwise have slightly misunderstood the terms.
    • Ebe Scrooge
    • By Ebe Scrooge 13th Jun 17, 4:06 PM
    • 3,677 Posts
    • 3,054 Thanks
    Ebe Scrooge
    • #8
    • 13th Jun 17, 4:06 PM
    • #8
    • 13th Jun 17, 4:06 PM
    and running the risk that your either forget.
    Originally posted by Brock_and_Roll

    I agree - the reason these things are set up is that a large proportion of customers will forget, and end up paying a load of interest.


    One way around it might be this. Using online banking, set up a "new payee". Then instruct a payment for £533.50 to be taken on the appropriate date in the 9th month.


    I'm not sure if all banks do this, but I know Santander ( my bank ) do. Any time I send a payment to an existing payee, it always gives me the option of "Make payment now, or on xxx date".


    Just a thought ?
    I may not know much about art, but I know what I like.
    • camelot1971
    • By camelot1971 13th Jun 17, 7:41 PM
    • 413 Posts
    • 625 Thanks
    camelot1971
    • #9
    • 13th Jun 17, 7:41 PM
    • #9
    • 13th Jun 17, 7:41 PM
    i'm not sure why people find these loans so difficult.

    I just set up a standing order into a savings account for however many months then make a note to pay the loan off a few weeks before its due.

    You can also make partial payments directly with no penalty.
    • Mobeer
    • By Mobeer 14th Jun 17, 7:11 PM
    • 1,657 Posts
    • 4,359 Thanks
    Mobeer
    Note this:
    "If your application is accepted an arrangement fee of £20 will be applied (charge applies for Buy Now Pay Later option only)"

    and this:
    "Should you choose to pay the outstanding balance off in full within the deferred period then no interest will be charged, however a £29 settlement fee will be charged."
    • Automaton
    • By Automaton 15th Jun 17, 2:02 AM
    • 8 Posts
    • 1 Thanks
    Automaton
    It's not badly written from their point of view. It is written very carefully to deceive.

    It is stated very clearly that the original loan amount must be paid in the 9th month, in order to incur no interest charges - in other words the full balance of £533.50 must be paid in the 9th month. On the first day of the 10th month the total payable becomes £894.54 and will continue to rise.

    They send no reminders about the date. They know that some users will misunderstand how it works and think payment only starts after 9 months, and many more will forget about repayment until a helpful letter arrives in the 10th month reminding them that £894.54 is now due.

    PS it's not new. I remember sofa sellers using this trick 30 years ago
    Originally posted by Alderbank
    Thank you, and thank you everyone that replied.

    One final question, again due to the wording: am I able to pay it off in full BEFORE the 9th month? For instance, I'm thinking of paying half of it off in september, and half in January. I don't know why they would word it "in the 9th month" if they mean "before the end of the 9th month".
    • Ben8282
    • By Ben8282 15th Jun 17, 5:12 AM
    • 1,913 Posts
    • 831 Thanks
    Ben8282
    Do you really want anything to do with this finance? The wording is either unprofessional or deliberately designed to be vague, confuse and possibly deceive.
    Even paying it off before the 9th month will cost you £49 (£20 arrangement fee/£29 settlement fee). The cost of your purchase is £759.70. The fees of £49 represent 6.5% of the purchase price. To put it in perspective, this is comparable to a balance transfer 0% for 9 months with a 6.5% fee.
    To answer the final question, they can't stop you paying it off earlier than the 9th month but I don't know how they would react to partial repayments.
    Last edited by Ben8282; 15-06-2017 at 5:21 AM.
    • Automaton
    • By Automaton 15th Jun 17, 9:46 AM
    • 8 Posts
    • 1 Thanks
    Automaton
    Do you really want anything to do with this finance? The wording is either unprofessional or deliberately designed to be vague, confuse and possibly deceive.
    Even paying it off before the 9th month will cost you £49 (£20 arrangement fee/£29 settlement fee). The cost of your purchase is £759.70. The fees of £49 represent 6.5% of the purchase price. To put it in perspective, this is comparable to a balance transfer 0% for 9 months with a 6.5% fee.
    To answer the final question, they can't stop you paying it off earlier than the 9th month but I don't know how they would react to partial repayments.
    Originally posted by Ben8282
    Unfortunately, it's the only way I can get the new computer I want which I am in desperate need of. I'm a student and will be paying it with my loans (thus the wanting to split up the payments). I've budgeted and after rent and utilities and this I would still have £85 per week so that's not an issue. I do agree that this is probably worded to deliberately to deceive, though, which is why I want to make sure I'm getting everything right. The fee doesn't bother me too much as, comparatively, their products are cheap and they have good reviews on customer service and delivery etc. etc. from computer enthusiasts.

    I'm having to do this through my dad, as they're unlikely to accept an application from a student without a full-time job. The same goes for a 0% interest (18 month) credit card, but my dad doesn't want to take out another credit card, so I'm left with this option.

    Realistically, as I'll be paying my dad, it doesn't matter about me splitting payments up, because he can just save them and add them both together and then pay all at once. I think I'm going to call them up and ask them explicitly, though. "Will I be able to pay half in september and half in january and still gain no interest?"
    • TrustyOven
    • By TrustyOven 15th Jun 17, 12:58 PM
    • 535 Posts
    • 610 Thanks
    TrustyOven
    Unfortunately, it's the only way I can get the new computer I want which I am in desperate need of. I'm a student and will be paying it with my loans (thus the wanting to split up the payments). I've budgeted and after rent and utilities and this I would still have £85 per week so that's not an issue. I do agree that this is probably worded to deliberately to deceive, though, which is why I want to make sure I'm getting everything right. The fee doesn't bother me too much as, comparatively, their products are cheap and they have good reviews on customer service and delivery etc. etc. from computer enthusiasts.

    I'm having to do this through my dad, as they're unlikely to accept an application from a student without a full-time job. The same goes for a 0% interest (18 month) credit card, but my dad doesn't want to take out another credit card, so I'm left with this option.

    Realistically, as I'll be paying my dad, it doesn't matter about me splitting payments up, because he can just save them and add them both together and then pay all at once. I think I'm going to call them up and ask them explicitly, though. "Will I be able to pay half in september and half in january and still gain no interest?"
    Originally posted by Automaton
    Um... you are a student with no full time job and you are:
    a) asking your dad to take care of life's problems
    b) going for an expensive brand-new computer? (by heck! when I was in full time employment the laptop I bought brand-new was only 399.99, not some fancy £533-£759 one that has been mentioned on this thread)

    If you are in desperate need for a computer, can't you go to a computer fayre and get a second-hand one for like £85 to £200?
    Goals
    Save £12k in 2017 #016 (£2040.32 / £10k) (20.40%)
    Save £12k in 2016 #041 (£4558.28 / £6k) (75.97%)
    Save £12k in 2014 #192 (£4115.62 / £5k) (82.3%)
    • Automaton
    • By Automaton 16th Jun 17, 1:27 AM
    • 8 Posts
    • 1 Thanks
    Automaton
    Um... you are a student with no full time job and you are:
    a) asking your dad to take care of life's problems
    b) going for an expensive brand-new computer? (by heck! when I was in full time employment the laptop I bought brand-new was only 399.99, not some fancy £533-£759 one that has been mentioned on this thread)

    If you are in desperate need for a computer, can't you go to a computer fayre and get a second-hand one for like £85 to £200?
    Originally posted by TrustyOven
    1) I'm going for an expensive one because if I bought a cheap one now I'd only regret the wasted money when I inevitably spend my money on an expensive one next year, for both music production and gaming. Music composition, recording and production is becoming a massive part of my life, and hopefully my career in the future (with some fall backs that my degree will grant me, obviously). To record and produce music well, and have the programs run smoothly and reduce the possibility of crashes, you need a minimum of a current-gen i5 or similar, and minimum of 8gb RAM, preferably 16gb, and also an SSD rather than a hard-drive. This would put the PC, including all the other necessary but cheap parts, at at least £600-700. Then there's the graphics card, which will be for gaming, my main hobby besides music.

    2) It's hardly asking my dad to take care of life's problems. He knows he won't be paying a penny for anything, he'll just be running it in his name so that it's even possible. There's literally no point getting a £200 PC because to save that money on top of everything else I need to buy myself (i.e. food and travel and other things) would take me until october anyway when I could just buy it up-front with my student loan. He knows that I'll pay him as soon as my loans go in, meaning he won't have to pay anything. Maybe you're not used to parents that will actually help their children with little things like this, but I don't see anything wrong with it. It's not as if I'm asking him for a loan out of his own money. It's the same as him being the "guarantor" for my rented property at uni. Students are expected to need guarantors--who are 99% of the time their parents--exactly because they aren't in full time work and because parents support their children throughout university.
    Last edited by Automaton; 16-06-2017 at 1:30 AM.
    • Arleen
    • By Arleen 16th Jun 17, 1:53 AM
    • 836 Posts
    • 607 Thanks
    Arleen
    1) I'm going for an expensive one because if I bought a cheap one now I'd only regret the wasted money when I inevitably spend my money on an expensive one next year, for both music production and gaming. Music composition, recording and production is becoming a massive part of my life, and hopefully my career in the future (with some fall backs that my degree will grant me, obviously). To record and produce music well, and have the programs run smoothly and reduce the possibility of crashes, you need a minimum of a current-gen i5 or similar, and minimum of 8gb RAM, preferably 16gb, and also an SSD rather than a hard-drive. This would put the PC, including all the other necessary but cheap parts, at at least £600-700. Then there's the graphics card, which will be for gaming, my main hobby besides music.
    Originally posted by Automaton
    You can build used-parts PC which will work as well as new one, the only downside is that it doesn't come with any guarantees for longevity, but that is generally not a problem as long as you run basic diagnostics on the marts to make sure they are operating at nominal levels. And that will cut your price by half, at least. And the best part is you can start cheap, but getting just the motherboard, cpu, 8gb of ram and HDD, and then expand as you get more money available, instead of doing it through loans.

    Also as much as you may love the sentiment for SSD, it will not make as big difference as you may think, or been told you. Nowhere near that, but will cost multipel times as much.
    • Automaton
    • By Automaton 16th Jun 17, 9:19 AM
    • 8 Posts
    • 1 Thanks
    Automaton
    You can build used-parts PC which will work as well as new one, the only downside is that it doesn't come with any guarantees for longevity, but that is generally not a problem as long as you run basic diagnostics on the marts to make sure they are operating at nominal levels. And that will cut your price by half, at least. And the best part is you can start cheap, but getting just the motherboard, cpu, 8gb of ram and HDD, and then expand as you get more money available, instead of doing it through loans.

    Also as much as you may love the sentiment for SSD, it will not make as big difference as you may think, or been told you. Nowhere near that, but will cost multipel times as much.
    Originally posted by Arleen
    If I'm making a big investment of something, I'd rather spend the extra to get parts that come with guarantees and are likely to last. The whole thing with PC enthusiasts is that, usually you upgrade your parts to the newest ones every 2-5 years. Buying used parts reduces that timeframe, making it kind of pointless.

    Besides, like I said, there's no way I can even afford £200 on a PC over summer with all the other stuff I need money for as well, not without a loan or a BNPL scheme.

    Also I've used an SSD on my friend's laptop and a few other friends' PCs, and I know for a fact that whilst the difference isn't massive in performance in games or in general PC usage, it is incredibly useful for music production in loading in/out various plugins (which you have to do a lot of).
    • TrustyOven
    • By TrustyOven 16th Jun 17, 1:09 PM
    • 535 Posts
    • 610 Thanks
    TrustyOven
    1) I'm going for an expensive one because if I bought a cheap one now I'd only regret the wasted money when I inevitably spend my money on an expensive one next year, for both music production and gaming. Music composition, recording and production is becoming a massive part of my life, and hopefully my career in the future (with some fall backs that my degree will grant me, obviously). To record and produce music well, and have the programs run smoothly and reduce the possibility of crashes, you need a minimum of a current-gen i5 or similar, and minimum of 8gb RAM, preferably 16gb, and also an SSD rather than a hard-drive. This would put the PC, including all the other necessary but cheap parts, at at least £600-700. Then there's the graphics card, which will be for gaming, my main hobby besides music.

    2) It's hardly asking my dad to take care of life's problems. He knows he won't be paying a penny for anything, he'll just be running it in his name so that it's even possible. There's literally no point getting a £200 PC because to save that money on top of everything else I need to buy myself (i.e. food and travel and other things) would take me until october anyway when I could just buy it up-front with my student loan. He knows that I'll pay him as soon as my loans go in, meaning he won't have to pay anything. Maybe you're not used to parents that will actually help their children with little things like this, but I don't see anything wrong with it. It's not as if I'm asking him for a loan out of his own money. It's the same as him being the "guarantor" for my rented property at uni. Students are expected to need guarantors--who are 99% of the time their parents--exactly because they aren't in full time work and because parents support their children throughout university.
    Originally posted by Automaton
    Yay! Getting into debt for gaming / wants, not needs.

    Yay! Bad financial mindset thinking that family based loans never go badly.

    Anyway, you have provided contradicting information in a previous post on this thread so I am not sure that any further advice or suggestions would be taken seriously by you.

    I hope it works out well for you.
    Goals
    Save £12k in 2017 #016 (£2040.32 / £10k) (20.40%)
    Save £12k in 2016 #041 (£4558.28 / £6k) (75.97%)
    Save £12k in 2014 #192 (£4115.62 / £5k) (82.3%)
    • Automaton
    • By Automaton 16th Jun 17, 2:59 PM
    • 8 Posts
    • 1 Thanks
    Automaton
    Yay! Getting into debt for gaming / wants, not needs.

    Yay! Bad financial mindset thinking that family based loans never go badly.

    Anyway, you have provided contradicting information in a previous post on this thread so I am not sure that any further advice or suggestions would be taken seriously by you.

    I hope it works out well for you.
    Originally posted by TrustyOven
    What contradicting information?

    Also, I didn't come here for advice or suggestions about whether or not I should get the loan, so don't act surprised when I am affronted by implications that I'm living in my daddy's pocket and acting like a child (which is what your post amounted to). All I asked was for an explanation as to the workings of the loan.
    • Grzegorz Kowalski
    • By Grzegorz Kowalski 16th Jun 17, 11:27 PM
    • 12 Posts
    • 6 Thanks
    Grzegorz Kowalski
    Unfortunately, it's the only way I can get the new computer I want which I am in desperate need of. I'm a student and will be paying it with my loans (thus the wanting to split up the payments). I've budgeted and after rent and utilities and this I would still have £85 per week so that's not an issue. I do agree that this is probably worded to deliberately to deceive, though, which is why I want to make sure I'm getting everything right. The fee doesn't bother me too much as, comparatively, their products are cheap and they have good reviews on customer service and delivery etc. etc. from computer enthusiasts.

    I'm having to do this through my dad, as they're unlikely to accept an application from a student without a full-time job. The same goes for a 0% interest (18 month) credit card, but my dad doesn't want to take out another credit card, so I'm left with this option.

    Realistically, as I'll be paying my dad, it doesn't matter about me splitting payments up, because he can just save them and add them both together and then pay all at once. I think I'm going to call them up and ask them explicitly, though. "Will I be able to pay half in september and half in january and still gain no interest?"
    Originally posted by Automaton
    A. Let me be honest, you don't really need that rig. Every Uni offers free, almost unlimited access to their computing power via virtual desktops, VPN etc.
    B. Go to Curry's and get their finance offer with "yourplan". Their offer has no setup fees or early repayment penalty. Account and repayments were accessible online and I was very happy after buying my laptop with them.
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