Buy now pay after 9months- Argos credit cards

baskey

Hi,

I have bought some items using Argos cards under "Buy now pay after 9months" offer. Just I completed 9months and I was surprised that they calculated interest from day one as I have not paid the amount within 9months.
All the time, I was thinking that first 9months its interest free and after that I need to pay interest. Neither I was not informed about this during the purchase nor a reminder sent to me before expiry of 9months period. They charges hefty amount as Interest. Now I have paid amount in full. However I paid the interest of GBP174 for borrowing GBP 954. I think, it is unfair on their side to charge for entire period.

Do any one have similar experience or any possiblilty to challenge them legally?

Thanks,

Baskey

aj3001

You just signed the bottom as opposed to read the T&Cs didn't you?

baskey

aj3001 wrote:

You just signed the bottom as opposed to read the T&Cs didn't you?

In fact I have not given any terms and conditions at the time of purchase and I don't remember whether it was mentioned at the time of issueing the card or not.

I was only 10 days delayed to make the full payment after 9months. Is there any way I ask them to refund. Any views pls.

Thanks,

regards,


Baskey

YorkshireBoy

baskey wrote:

...I don't remember whether it was mentioned at the time of issueing the card or not.

The following is what you signed for on the credit agreement...

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

(5) Buy Now Pay Later Plan

a) You need not make any minimum monthly payment for an option period (Option Period) of 3 months, 4 months, 5 months, 6 months, 7 months, 8 months, 9 months, 10 months, 11 months or 12 months (whichever period is offered under the particular Buy Now Pay Later Plan) from the date of the transaction. Provided the transaction is paid for in full by the end of the Option Period no interest is payable by you in respect of that transaction.

b) 1 month before the end of the Option Period we will tell you the amount you have to pay, and the date by which payment must reach us, so that no interest is payable under this Plan.

c) If you do not pay in full for the relevant transaction at the end of the Option Period the balance owed for the relevant transaction, together with interest accrued over the Option Period, will be transferred to your Normal Plan. Interest will then accrue under the Normal Plan, however Condition E(2) will not apply.

I was only 10 days delayed to make the full payment after 9months. Is there any way I ask them to refund. Any views pls.

You can ask, but based on the above I wouldn't think you'd have any success.

chelle

I believe this is normal in the buy now pay later schemes.

If you do not pay before the time is up, you pay interest from the day the loan was first given to you.

They are not obliged afaik to send you a reminder to pay off the balance before they charge you interest as this is obvioulsy how they make the money.

Robert_Sterling

Caveat Emptor ... Let the buyer beware ... of Argos et al.

OverlandLandy

baskey wrote:

Hi,

I have bought some items using Argos cards under "Buy now pay after 9months" offer. Just I completed 9months and I was surprised that they calculated interest from day one as I have not paid the amount within 9months.
All the time, I was thinking that first 9months its interest free and after that I need to pay interest. Neither I was not informed about this during the purchase nor a reminder sent to me before expiry of 9months period. They charges hefty amount as Interest. Now I have paid amount in full. However I paid the interest of GBP174 for borrowing GBP 954. I think, it is unfair on their side to charge for entire period.

Do any one have similar experience or any possiblilty to challenge them legally?

Thanks,

Baskey

I wish you luck...but I don't think this is one that you will win. All of the 'pay nothing for xxxmonths etc'...cards/offers all appear to work on the same basis. If you had paid it off before the deadline you would have got it interest free......and would have been able to invest the money elsewhere....

The information on the Argos website (and it may be in their book) is pretty clear on the matter

http://www.argos.co.uk/static/FSCard.htm&tag=HP1_6e

Spendi

i got stung by this one as well !!

pavlovs_dog

the T&Cs on the application form make it very clear that interest is deferred on BNPL plans - ie, if you do not clear the outstanding balance within th BNPL period, you are charged interest from the date of purchase.

by signing the credit agreement, you agree to these terms and conditions.

also, the "your BNPL ends on x date and you owe us £x" letters are sent as standard, and the last i heard, this had not changed - so i'd be very surprised if you didnt get one. they come on white paper, which makes them stand out considerably from the yellow stuff your normal monthly statements are printed on. there is no obligation for argos card services to do this - very few credit companies do. as chelle pointed out, its where they make their money

moneyuser

This is the whole point of these deals, they catch the unaware or lazy people out. I wonder what percentage of people forget about the "pay later" bit