Clode Retail Finance- Payment processing charge

clarence83_2

Hi

Not sure where to check for this, but 12 months ago I bought a telly on finance at 0% if I paid it off within the 12 months (an amazing deal for the specific telly at the time, cheaper than anywhere else).

I am going to pay it off today, the balance is £1318.50 but they are saying that they charge 1.6% payment processing fee for any payments made not by direct debit.

This makes the amount I have to pay £1339.60

Are they allowed to do this? I might expect a charge for paying by credit card but not by debit card or cheque.

I don't recall them mentioning anything about this at the time.

Thanks

StuTheDon

Sounds cheeky - have you checked your agreement? Is it mentioned in there?

If needed could they not just take the final payment by direct debit?

clarence83_2

It looks like they would only take separate payments by direct debit, ie after the 0% offer, a high rate kicks in at £66 a month.

I might ring them and ask if they can take the whole amount by a standing order or something. I just think it's really wrong!

StuTheDon

It is really wrong - but if it is in the T&Cs you signed sadly there is probably little you can do.

Best of luck.

clarence83_2

They're at home and I would like to pay today. I will query it when I call them in a sec.

Thanks for your help!

Sportbilly_2

They did it to me last year as well. I paid up, but wish I hadn't as I subsequently found though an internet search that other people had complained/ refused to pay the charge and had had it removed. It might be worthwhile you doing a similar search before you contact them.

It's sharp practise at best- the direct debit option only applies if you then go onto the 3 year repayment plan with 30-odd % interest. Also to levy it as a percentage is ridiculous- it costs them no more to process a payment on £1500 than it does on £100, yet you'd pay 15 times more if you'd borrowed the higher amount.

On a wider point, this shows that these '0% interest free for 12 months' deals are really poor. With the initial arrangement charges and the exit fee I paid to Clode, I ended up paying the equivalent of about 7.5% in interest.