Has anyone else noticed?

eloiseh

(I am not sure if this is the right area to post this.)

Has anyone else noticed that it is becoming increasingly popular for websites to set you up with a credit account as part of their account.

On TV the other day I noticed TWO adverts which said that in order to purchase you would be required to set up a credit account.

I am currently going through a complaints procedure with Next. When purchasing a top online (due to an introductory £10 off your first purchase online voucher) Next performed a credit check on me and declined me for a credit account. I thought that I had clicked the option that said not to set up one, but it seems they will try either way. This is unfair, it would be like going in store and being given a store card you didn't ask for. Worst of all is they will put your purchase on credit without asking. (if you are accepted). I now have a declined credit check for credit I didn't need, want or ask for.

They didn't ask for a sort code or account number to run the credit check either, or that would have flagged a warning to me.

I am taking next to the FOS, and strongly recommend that anyone else caught out by this do so too. Hopefully they will be made to change their website, making it more clear that if you progress further they will try to set up a credit account.

DCFC79

Next have been like that for years, cant say ive seen the ads you refer to though. I dont use next(theres a wide choice of shops) so its not a problem for me.

I do how ever think its a bit cheeky they still carry out a check on you even if you select no as the OP did.

electrobix99

I registered on Next years ago and only when I checked my credit file the other month did I notice on there I had a credit account marked as inactive and closed.

I did not provide enough information for them to even do a credit search properly. I did not even buy anything in the end.

geoffky

I also think this needs sorting out as it is not plain from the beginning. why would i want a credit account with next i do not know but it does stop me shopping online with them as i never will or never had a credit account with a high street retailer..

~Beanie~

eloiseh wrote: »

They didn't ask for a sort code or account number to run the credit check either, or that would have flagged a warning to me.

They don't need bank account details to do a credit check, just your name and address etc

Candy53

I've always had catalogues over the years, but just stick to one now, but I think I know why they do a credit check.

Even in the old days, they needed to know I was credit worthy, and even if I said I wasn't going to have anything on credit, and I was going to pay the full amount, they never trusted me, as they then wonder why you're buying things from a catalogue, as most people do this to be able to pay over a period of time. They always wanted me to set a credit account up.

Looking at it from their point of view, when they send the things you've ordered, they still belong to them untill you've paid for them, and even if you say you're going to pay in full, they do a credit check to see if you're reliable, and will pay. I should think there will be some people who do order things, then don't pay.

Candy

rartherinv

FoS will fob you off with a 'Read the T&C's properly' response. Unless loads of people complain, they will assume you have clicked the wrong button on the website, which you yourself are not too sure of.

Not picking through T&C's aside, if they did not ask for your bank details during the purchase process then that would be a big signal that you are signing up for credit. You are confused in thinking that because a merchant does not ask for your account number and sort code they will not check your credit file, they can only use your bank details to charge you or set up a regular payment. To check your credit file all they need is your name, address, DOB and your permission to check your credit file, all of which you gave to them on your 'application'.

FoS will not even look into the matter, you will just get a standard middle finger in writing. you were slightly ignorant in this matter regarding terms and conditions, understanding of credit searches/agreements and basic understanding of how catalogue companies work - they are not normal retailers, they are lenders.

miss_hh

I also purchased items on two occasions from next. On the 1st purchase I didnt realise that I was giving permission for a credit account check until they told me that I was refused. The following time I purchased something, I un-clicked the box. When I checked my credit file last month, Next had performed two separate credit checks on my account.

I knew I would never get a credit account and these checks have not helped my credit file any.

eloiseh

FSA Regulations clearly state that when it comes to credit accounts the company must make it very clear that you are signing up for one, which Next did not.

Next made it appear that if I clicked the other box no credit account would be applied for. This was a wrong. I have spoken to Next who have moved me up their complaints system, but as I have said to them I am taking the to the FoS.

After having a look online I see that in 2009 other people had the same problem. Next agreed that in 2010 they would change their site (after the Christmas rush...) which hasn't happened.

They are taking away a basic right - to pay for something up front. It is not made clear that no matter what I click a credit account will be applied for. At no stage is there a button that allows me to pay for an item with my debit card, until after it has rejected me. Consumers should be given the option to pay with a debit card.

Why can an online shop pressure people into paying on credit by only allowing purchases once a credit account has been applied for, or on debit card once they have been rejected?

Shops wouldn't be allowed to do this, why can online retailers?

DCFC79

Just dont use next is a solution.

eloiseh

That doesn't stop it happening to other people. Also I have used next and this has happened. "Just don't use next is a solution" isn't a solution to the problem.