Buy now pay later

joshmfc

Hi MSE's

Can anyone help? I bought some kitchen appliances on a buy now pay later basis. If I paid in full after 12 months there was no interest charges. Unfortunately I didn't pay the full balance of £1750 after the 12 month period and so started paying the loan off on a monthly basis. After 2 months of doing this I asked for a settlement figure as the loan period was 4 years and monthly ammount was approx. £76 mean a total ammount to pay of approx. £3600. To settle early will still cost me £2400 even though I have already paid 2 x £76. I nearly fell of my chair when I read it. Without being an expert this rate of interest seems to be in the region of 40%.

Although I expected to pay some penalty I didn't expect it to be this much. Does anyone know if or how I can get this settlement figure reduced.

Many thanks

Joshmfc

scotsgirl_3

Hi

I suspect it works like this - the interest will have been added from the time you took out the agreement. If you settled within the 12 months the interest would have been removed, but because you didnt the full years interest will have been added on. Also, with the majority of these agreements you will pay more interest at the start as it is often added on on a monthly basis - so at the start you will pay more to interest than repayment, and gradually this will change.

hope this makes sense

mrmajika

Plus, 'for your own peace of mind', there may have been some PPI involved also.

I have just taken a suite on one of these Pay Nothing For a Year deals. I have noticed that I have been given interest free and PPI free for the 12 months. If I don't pay within the 12 months then the interest and PPI is added for that 12 month period and then continues. The APR is 29.9% I will be paying off long before the year is up!

SavinginUnison

Check the terms of your agreement, it should state very clearly on there. We have just used buy now pay up in 12 months tp get a new laptop that we were saving to buy next year - we have £300 out of the £1000 saved for it and we are doing the whole £2 saver thing which is great and we get quite excited as they start to mount up. The rest will be our Christmas and Birthday gifts.
The minute we got in from PC World we put the date that it will need to be paid off on the bottom of December on the calendar and an alert on the Mac that we use every day. Don't let them con you if your agreement shows that they are trying it on.

Astaroth

As others have said, it normally isnt "interest free" but "you dont pay the interest" if you pay within 12 months. If you fail to pay in full within the 12 months then the interest for the first 12 months then becomes payable.

joshmfc

Thanks for your replys. Looks like i will have to lump it and put it down to a stupid mistake. I'm gutted really though cause when i bought the appliances I had every intention of paying of the loan off before the 12 months was up . Things don't always work out as you planned!!!

Thanks again

Gorgeous_George

I agree with the others.

These deals are only worthwhile to the credit company if there are people, like yourself, who (for whatever reason) do not pay within the agreed 'interest-free' period.

I don't like the term 'Buy Now Pay Later'.

It should be 'Have Now Pay Later'.



GG

amidala_2

Hi, I have just done the same thing by not paying a buy now pay later deal off before the 12 months. I have written a letter to the company complaining that they should write to you to advise you that the interest free period is coming to an end as well as other things. I don't remember when signing the agreement whether all of the terms and conditions were fully explained to me at the time. I am waiting to hear back from the company which was called "open and Direct"!!!! Any advice for me on what to do would be appreciated? I was thinking about paying it off with a life of transfer low rate cedit card. Is this a good idea?

rsykes2000

I've done 'BNPL' deals twice. On neither occasion did the company write to me and on both occasions when I called to complain about this they lied to me and said they had written. Strange that I received all other post I was expecting apart from those 2 letters...
Fortunately like the person above I had made a note of the date it needed to be repaid by and had done it.
Anyway, as for a life of transfer card, I doon't think this will be worth it. The companies tend to load all the interest at the start of the loan period so it might not be as though you'd actually be saving anything by doing it this way. It's definitely worth giving them a call and asking for an early settlement figure to find this out for sure though.

DawnW

I too have done a couple of these deals, and in my experience, they DON'T write to you to tell you when the interest free period is going to be up, you are expected to just remember, a bit like the 0% credit card deals... It is really important if you use any of these to note in your diary when you need to pay it off. As long as you do that it is a reasonable deal, but if not, beware!

pollyanna24

I got a letter reminding me that my payments for my DFS sofa start on 31st March.

I intend to pay it off because even though if I don't, they will take 6 payments over 6 months, I noticed that they whacked a whole load of PPI onto it even though I told the man at the time I had the money to pay for it, I just didn't want to if I didn't have to.

Cheeky so and so. That's the kind of thing most people wouldn't notice and it took me a while to notice and all!