Homebase - shocking interest charge

BrokeBloke_3

Does anyone know if something can be done about the excessive interest that I am being charged by Homebase personal finance?

I purchased something on an interest-free period and had managed to pay off most of the balance before the end of the interest-free period.

I had been under the impression that after the interest-free period expired, interest would be charged based on the outstanding balance.

To my horror, I have received a statement which has doubled my balance and learned that the interest has been charged from the start of the interest-free period!

The person who sold me the product in the store did not tell me about this, and the customer services person who I made a previous payment to, also did not mention this would happen if I did not pay it all off by the end of the interest-free period.

Help!

Brian_Bullocks

BrokeBloke wrote: »

Does anyone know if something can be done about the excessive interest that I am being charged by Homebase personal finance?

I purchased something on an interest-free period and had managed to pay off most of the balance before the end of the interest-free period.

I had been under the impression that after the interest-free period expired, interest would be charged based on the outstanding balance.

To my horror, I have received a statement which has doubled my balance and learned that the interest has been charged from the start of the interest-free period!

It's all in the T&C's you signed, so no wriggle room for you.

iolanthe07

This is common in these type of "buy now pay later" deals. You have to pay them off in full before the due date or you're stuffed. As Brian says, it will be all in the terms and conditions that you signed.

BrokeBloke_3

I've previously bought from comet and they did not backdate the interest in this way, so I just expected Homebase to be the same.

Maybe I shoudl have read all the T&C, but does anybody read all the small print?

I'm particularly annoyed with that customer services person I spoke to when I made a recent payment. This was just a few days before the end of the interest-free period, so would it have killed her to just say, "by the way sir, you do realise we're going to slap a whopping interest charge in a few days, so try to pay it all off before then".

Incisor

BrokeBloke wrote: »

... Maybe I shoudl have read all the T&C, but does anybody read all the small print? ...

Don't you think you will in future?

iolanthe07

so would it have killed her to just say, "by the way sir, you do realise we're going to slap a whopping interest charge in a few days, so try to pay it all off before then".

She's probably under strict instructions not to remind you of this. It's how they keep the headline price down. Sharks don't just live in the sea.

uktyler

iolanthe07 wrote: »

Sharks don't just live in the sea.

And people are responsible for their own actions.

Read the T&C, no one has ripped you off.

You can't blame this one on Homebase.

System

almost without exception "buy now pay later" schemes are like this even if your outstanding balance was £1 the full amount of interest is payable.too many people have to have things immediately that they fail to read the t &c ! noe ones fault but their own !!!

Gorgeous_George

I remember learning this lesson many years ago. It is how these deals are financed.

Hopefully, they only catch you out once.

Pay up and NEVER shop there again.

GG

KimYeovil

Why would one not shop there again? It's a bargain - six months or nine months free of interest, all you have to do is make sure you pay off the balance in time (which means a couple of weeks, not a couple of days, before it's due.) Everybody* knows that it is expensive to not clear such arrangements in time.

* Well, okay, clearly not everyone.

BrandNewDay

I would not have known this. It wouldn't have occurred to me and if nobody pointed it out, I probably wouldn't have learned of it, either.