Argos Store card-Isn't this a con??

RunnyJam

Yes newcastlebelle Argos sent me the type of letter you refer to in respect of the 3 monthly item due for payment. They also sent me a full statement showing all the items of credit I have from them. It detailed the above 3 monthly item and also another item of normal credit due for payment. They were of apprx £100 each. On the reverse of the statement I had 5 options for payment method to pay off the £200 - Direct Debit; Post; On-Line or Over the phone; or at any bank or building society.
I paid on-line the £200. However they ignored the £100 payment for the normal credit and applied it to the balance which was not due for another 6 months. Thus they made it appear that I was in arrears with the normal credit and charged me interest on it. My payment was in compliance with the terms of my credit account.

It is thus not a matter of reading the Terms &conditions; it is matter of mischief at the heart of this company in how they apply the payment sent to them. I suspect there is egg on the face and their ego has been damaged. This does not surprise me because I have just looked up the enormous amount of mess they are in as seen on one of the many consumer websites such as :- h**p://www.consumeractiongroup.co.uk/forum/other-institutions-successes/6602-stonelaughter-argos-card-services.html

RunnyJam

tictax

dmg24 wrote: »

No, it is not. Would you take out a mortgage without reading the paperwork? This is no different.

People need to take responsibility for their own actions. If you don't understand the paperwork, then you shouldn't borrow the money. If you choose not read the paperwork, irrespective of whether you will understand it or not, then you are irresponsible and stupid.

I agree that you wouldn't take out a mortge but sometimes people get caught up in the moment when buying things like furniture, tvs etc. Yes you should read the terms but as someone else has pointed out they aren't always the easiest thing to read.

exel1966

RunnyJam wrote: »

Yes newcastlebelle Argos sent me the type of letter you refer to in respect of the 3 monthly item due for payment. They also sent me a full statement showing all the items of credit I have from them. It detailed the above 3 monthly item and also another item of normal credit due for payment. They were of apprx £100 each. On the reverse of the statement I had 5 options for payment method to pay off the £200 - Direct Debit; Post; On-Line or Over the phone; or at any bank or building society.
I paid on-line the £200. However they ignored the £100 payment for the normal credit and applied it to the balance which was not due for another 6 months. Thus they made it appear that I was in arrears with the normal credit and charged me interest on it. My payment was in compliance with the terms of my credit account.

It is thus not a matter of reading the Terms &conditions; it is matter of mischief at the heart of this company in how they apply the payment sent to them. I suspect there is egg on the face and their ego has been damaged. This does not surprise me because I have just looked up the enormous amount of mess they are in as seen on one of the many consumer websites such as :- h**p://www.consumeractiongroup.co.uk/forum/other-institutions-successes/6602-stonelaughter-argos-card-services.html

RunnyJam

It's commonoly known as 'allocation of payments' and all credit/store cards apply it in very similar, though not identical ways.

ALLOCATION OF PAYMENTS
If you do not pay the total outstanding balance in full by the payment due date, we will apply the amount you do pay to reduce what you owe us in the following order:
- Former Interest Free Purchases which were transferred to the standard balance on the last statement but have not yet been charged interest;
- Promotional balances. This includes any interest and fees on promotional balances.
- The standard balance. This includes interest and any charges or fees applied to the account (which are not referred to elsewhere in this condition) but excludes any former Interest Free Purchases which have not yet been charged interest;
- Interest Free Purchases which have not yet been transferred to the standard balance.
- The cash balance. This includes interest and any cash handling fees or foreign exchange fees on cash withdrawn abroad.
If you have more than one promotional balance they will be repaid in the following order:
- transferred balances before promotional purchases;
- then open ended offers before fixed period offers;
- then lower rate before higher rate offers;
- then oldest offer before newer offers.

How can it be mischief ?

The moral is, as is explained here on MSE in various places is to try and avoid cards offering differing interest free periods or if you do use them then clear the balance in full by the time the first offer expires.

RunnyJam

My account is not in arrears and comprises purchase transactions only. Therefore there is no amount payable for arrears, fees, transfers, charges, interest etc. In exact terms the first transaction is of Normal Credit £80 and the second is a 3 month Buy-Now-Pay-Later £99.79, both of which are due for payment in July 2008.
The total outstanding balance payable in full by the payment due date of July is (£80+£99.79) =£179.79
There are additional items of purchases for which payment will not become outstanding until a few months later.

Argos in their correspondence offered that I could clear the £99.79 in full and pay £3.20 of the £80 now and pay interest on the above. I did not wish to pay interest and therefore I did not accept their kind offer.
I chose to clear both the amounts in full and thus sent an On-line payment of £200.

Argos chose to clear the £99.79 from the payment, and chose not to clear the £80 which I owed them. Thus forcing me to fall into arrears and therefore making me liable to pay interest of 27.9% on it. Argos applied the balance of the money to the items for which payment would become due sometime in the future.

I have sought to clear the total amount of balance that is due for payment, which Argos have prevented me from doing. If this is not mischief then what is it? Is it in compliance with the "Allocation of Payments" that exel l966 elaborates in such "Crystal Clear" acccredited language? If so his painstaking elaboration is nothing more than the Magnacarta of those who have mischief at heart.... What kind of mischief ? ... the mischief of Exploitation of the public.

Do I have to pay to Argos ALL the money on my statement both due now and also that which will become due for payment in 6 months from now, before I am allowed to pay off the £80 that I owe them today?

As geordie joe says in an earlier reply "I'd love to see someone from Argos on Watchdog trying to defend that one!"

RunnyJam

geordie_joe

Here are the T&Cs for the argos card



http://www.argos.co.uk/webapp/wcs/stores/servlet/ArgosFSCardTermsConditionsView?langId=-1&storeId=10001

Allocation of payments
F. By entering into this Agreement you direct us (and we accept your direction but are not obliged to accept any other direction) to allocate your payments (including any by way of set-off under Condition 12 of the Further Conditions) between different amounts you owe us under different plans as follows: first to minimum payments required on any Current Plan then, to the extent of any surplus remaining, to the Normal Plan and then (on the same basis) to any Interest Opt Out Plan, then any Buy Now Pay Later Plan, then any Zero Interest Option Plan and then any Interest Free Plan. In respect of amounts so allocated to each such plan you direct that your payment be further allocated as follows: first to any amount for insurance and then to the extent of any surplus remaining to interest and then on the same basis in the following order: fees, then principal in arrears and then current principal. In addition, we will ensure that you have the opportunity to pay off the balance of an Interest Opt Out Plan; Buy Now Pay Later or Zero Interest Plan before it ends. Each time you make a payment, by whatever means (including by way of set-off as aforesaid), you confirm your said directions.

exel1966

I'm sure If Argos had anything to defend, they'd appear on Watchdog, but as they haven't they probably won't !

You're in the wrong like it or not so forget all the claptrap and whinging about something you chose to ignore or misunderstand and just put an exact summary of your expenditure showing dates/amounts and then you'll probably get a difinitive answer on what is the best course of action !

geordie_joe

exel1966 wrote: »

I'm sure If Argos had anything to defend, they'd appear on Watchdog, but as they haven't they probably won't !

You're in the wrong like it or not so forget all the claptrap and whinging about something you chose to ignore or misunderstand and just put an exact summary of your expenditure showing dates/amounts and then you'll probably get a difinitive answer on what is the best course of action !

Well, looking at the terms argos publish on their web site it is clear they did exactly the opposite. In my mind that makes argos wrong, not Runnyjam.

Even if their terms were written to allow them to do what they did it wouldn't make them right. They would probably be breaking the unfair terms in contracts act of 1999.

A standard term is unfair if it creates a significant imbalance in the parties’ rights under the contract, to the detriment of the consumer, contrary to the requirement of good faith.

I'm sure using your payment to pay off things that don't need paying for months, instead of paying the thing that needs paying now or you get charged interest, is something you could consider to be creating a significant imbalance in the parties rights under the contract, to the detriment of the consumer.

newcastlebelle

sorry Runnyjam that you've had problems, I've only ever paid with a cheque posted to them with the letter of demand, at the bank or post office..........dont trust online banking yet

RunnyJam

I am making an effort to resolve this matter satisfactorily. If it does not, I may need to knock on the door for help, of the Financial Ombudsman or the office who issue licences for money dealings. Any ideas any one how to go about this?

Thanx every body for your help and advice.

RunnyJam

geordie_joe

Go for it! I can't help you with where to go next for help, but I'm sure you are in the right and argos are wrong. I'm also sure someone in here will be able to point you in the right direction, should you need it.

So come back and let us know how you get on, and if you need more help.

Good luck :beer: