Santander BNPL, possible early settlement fee loophole?

Tobster86

I bought something from Comet earlier this year on a 0% buy now pay later with a £25 early settlement fee. The facility is provided by Santander.

It's come to pay time; my options are pay it off in full with the early settlement fee, or don't pay it and begin to incur horrendous interest.

Or there's possibly a third option.

It is an entirely automated system that takes payments and you can specify how much you want to pay. If I pay off most, but not all, of the balance now; and incur said horrendous interest on the for example 1 pence remaining, and then clear the balance in full next month; do I effectively (and legally!) avoid the early settlement fee?

I can't see anything in the T's & C's that would suggest that this wouldn't work, but it just seems a bit too easy.

chanz4

woulnt the intrest be on the whole amount though

bengalknights

Yes you do

Tobster86

Chanz4, it doesn't seem like it. The relevant wording I found is:
"If you applied for a deferred payment loan, we will not charge any interest from the date of this agreement to the end of your deferred period. We will charge interest from the end of the deferred period on any balance that remains outstanding under this agreement after that date"

bengalknights: Do you have any past experience of this and if so would you be kind enough to share some finer details, how much paid vs outstanding, etc?

Obviously if I do this I want to do it in a subtle undetectable way that won't result in subsequent hours of arguing on the phone with them.

I'd also like some confirmation that it's not in any way illegal.

andy.m_2

Wouldnt you need to leave 12p in and make a 1p payment each month for the full period?

bengalknights

Tobster86 wrote: »

Chanz4, it doesn't seem like it. The relevant wording I found is:
"If you applied for a deferred payment loan, we will not charge any interest from the date of this agreement to the end of your deferred period. We will charge interest from the end of the deferred period on any balance that remains outstanding under this agreement after that date"

bengalknights: Do you have any past experience of this and if so would you be kind enough to share some finer details, how much paid vs outstanding, etc?

Obviously if I do this I want to do it in a subtle undetectable way that won't result in subsequent hours of arguing on the phone with them.

I'd also like some confirmation that it's not in any way illegal.

Based on my personal experience with Santander themselves since the laws changed in february you can pay whatever you want and you only get charged the interest on the oustanding balance if you left 12p as a balance you would pay it of over the duration (although most likely they would just write it off)