Advice needed..

onedaymyfriend

Good afternoon,

I need some advice with regards to Very.co.uk

Last year I ordered three items for a family member on Very's 'Buy Now Pay Later' scheme. The items were a HP laptop (£499), an Acer laptop with a cash price of (£356) and an England football shirt (£45). During the 12 month interest free period, only a small payment was made against the England shirt. My aunt was fully aware that the 39.7% apr would be added to each item after this time.

My question is- Can Very add more interest on to these items? They have told me that another 19.9% apr is being added to the account balance, which already includes the original 39.7% apr from the BNPL period. How can this be right?

The original cash price in total would have been - £883.93 , but as this wasn't cleared in the first 12 months 39.7% apr has been added = £1234.88

and now they have added another 19.9%. So the new total is £1512.

Any advise would be much appreciated... I've looked through the terms and cons and can't find any refference to the extra apr being added.

Thanks as always!

D

wealdroam

The £1234.88 accounts for interest due in the first twelve months.

Is the extra above that due to them charging interest on the outstanding balance since then?

onedaymyfriend

wealdroam wrote: »

The £1234.88 accounts for interest due in the first twelve months.

Is the extra above that due to them charging interest on the outstanding balance since then?

Hi! The extra is what Very call the 'account interest', which is to be added to the balance every 28 days. There is no mention of this (that I can find in the terms and conditions) - http://www.very.co.uk/help/en/privacy-terms.page

So over the 80wk payment period my aunt will pay back roughly (I think) 72% extra...

Thanks again,

D

wealdroam

Yes, it's all in there.
http://www.very.co.uk/help/en/privacy-terms.page#flexible

They send you a statement every 28 days.
Every statement will have more interest added if you do not pay the balance in full.

Under the heading Terms & Conditions for a credit account, paragraph 10 on your link says (under the sub-heading Costs of Credit)...

If you do not pay the Take 3 Payment, interest will be calculated on the daily current balance at the standard rate and applied to the account every 28 days. For all balances which do not relate to Take 3 or Interest Opt-Out Transactions, interest will be calculated on the daily current balance at the standard rate and applied to the account every 28 days.

onedaymyfriend

wealdroam wrote: »

Yes, it's all in there.
http://www.very.co.uk/help/en/privacy-terms.page#flexible

They send you a statement every 28 days.
Every statement will have more interest added if you do not pay the balance in full.

Under the heading Terms & Conditions for a credit account, paragraph 10 on your link says (under the sub-heading Costs of Credit)...

So even after adding 39.7%, I can now be charged an extra 19.9%? That to me is day light robbery.

I'm unable to use the Take 3 option, as they were BNPL items.

visidigi

Its not robbery (day or night) if you signed up to it.

This is why its critical that you pay it back within the 0% interest period. Most people do, those who don't provide the profit on the service that allows companies and banks to function from offering a 12 interest free loan.

I'm afraid your charges are right, and it would be advisable to get it all paid as soon as you can (or shifted across onto a 0% credit card or equivalent to at least remove you from the significant interest rate mire you are in now...)

wealdroam

That, I am afraid, is how credit agreements work.
You borrow money.
Interest is added to the money you have borrowed for all the time that you owe the money.
If you don't pay it back, the debt will grow and grow.

As said above, not robbery. An agreement is in place.

onedaymyfriend

Thanks for your feedback guys. I am aware that Very can change the APR at anytime, as long as they give me 28 days written notice. My next question is, once I have ordered something at one APR rate, can they then change that APR rate? Or would it just be for new purchases? I ordered an item this year with the APR at 19.9% after the BNPL period, but now the APR has changed to 37.9%... Is this right? The item will be paid for by the end of the BNPL period, I just don't see how thats fair for anyone.

Elle7

It won't matter what interest rate they charge if you pay it back before any interest is added.

But, yes, they can change the interest with 28 days notice - which it seems they have given here.