Clode Retail Finance

Mr_Meinhof

Buyer beware. Interest free doesn't mean free money.

I purchase a laptop through a well known and respected high street retailer. Went for the buy now pay in 12 months option.
The finance was through V12 who are part of/owned by Clode Retail Finance (Clode Funding).
Cost was approximately £1,500.
I paid 10% deposit.
Was told just before contract came out that there was a £65 fee to V12. Had no real option by that point.
I am now at the entering the end of the 'free' part of the agreement and wanted to pay off the balance to clear the account.
Get notified that I have to pay an additional 1.6% processing fee - approx £22. This was in the small print on the contract. I must admit that I thought it related to subsequent payments if you started to pay interest. This covers payment by cheque or credit card. The clever part is that they don't let you pay by BACS which would be free. They do not let you have their sort code (not available anywhere - very clever lads). So they force you into paying the 1.6%. Direct debits are 'free' but by that time you are into the 20+% zone anyway. So this in effect forces the price up. You would have to spend a good while reading the contract before you signed, to spot that one.

So interest free became a 12 month loan at around 5.5%.

My main point is that if you have your eyes on a shiny new piece of kit that comes with a 0% interest offer from V12/Clode - make sure and ask about the extra/fees. Make sure and read the small print when the salesperson is hovering over you. Don't rush. Ask question or query. Or do a quick sum in you head. You are not going to pay the price on the shelf.

I know the clever money lenders need to make their wedge. But I just wish they didn't hide thier 'fees'. Just be up front with it.

magpiecottage

If your loan agreement says you can pay it off via BACS at no charge why not simply ask for the details and do it via online banking?

Mr_Meinhof

The contract makes no mention of paying by BACS. You have to figure it out for yourself. You find out that it can't.

TUS

I've had several such loans via Clode over the past few years ... and every one I have called up and paid off in full with my debit card without any extra charges. I've had very good experiences with them to be honest. I've got another "buy now pay later" agreement on the go now, which is to be paid before mid-Sept, but I'll be paying it off in August again via debit card.

Mr_Meinhof

So you have never paid any extra fees?
You must be getting special contracts. Staff rates perhaps?
It is unusual for someone to be so enthusiastic about a finance company.
I will never use them again.
By the way, I don't work for their competition.

TUS

Ha, I certainly don't work for them :-p

I work in IT ... thus the night shift I'm just finishing. No - just wanted to make the point I have not paid any fees when paying off a "buy now pay later" jobby ... its always been straight forward for me. Will post back in August when I pay off my girlfriends laptop.

Caketh

The short story is that a company cannot charge an administration charge for a specific payment method if they will not allow you to pay by any other means, particularly in this case as process automatically means a DD is set up on your account in case you don't take up the interest free period offer.

The longer story:
I have dealt with this company a number of times over the years and never had a problem before. They have always sent a reminder letter so that you don't miss the deadline if you want to take advantage of the interest free option. On this latest occasion I received the letter as normal but the balance to pay was higher than the balance should have been. I phoned them up and was told that the extra 1.6% was due to the payment being taken by cheque or debit payment and it was an administration charge which was in the small print on the agreement. I told them that I authorised them to take the payment by direct debit as a direct debit in their favour was already set up on my account. I also wrote and suggested I could pay by bank transfer if they gave me their bank account number and sort code. They said they could not give bank details and did not respond to the other suggestion. I contacted Consumer Direct in order to be able to speak to Trading Standards and because they weren't immediately available the person I spoke to suggested that I contact the Financial Ombudsman which I did. The person I spoke to there was extremely helpful. The end result was that Clode Retail wrote to me and said that although they were perfectly entitled to make the charge that they would wave it in this instance. I phoned up to make the payment by debit card but there was a problem with it. Clode told me it had been refused and my bank told me it had been authorised! As I did not believe Clode I was somewhat irate and asked them whether they wished me to take this to the FO as well so she gave me the bank account and sort code for Clode so that I could pay by transfer.

westvillewonderboy

Post the account number and sort code so that the rest of us can benfit from transferring via BACS?

Cheers:beer:

Apples2

westvillewonderboy wrote: »

Post the account number and sort code so that the rest of us can benfit from transferring via BACS?

Cheers:beer:

I'll post mine up so you can all deposit away. Crack on chaps, the more the merrier.

sharpy2010

Apples2 wrote: »

I'll post mine up so you can all deposit away. Crack on chaps, the more the merrier.

Just watch out for the joker who sets up direct debit coming out of your account to one of the charity muggers who accost people in the street...