Very acc & bnpl interest

Legacy_user

Hi, I want to ask about Very acc & bnpl interest. I bought smgt on bnpl offer. And I didn't pay be the end of bnpl period. So the bnpl amount was added to my account. But I also saw on my statement that I'm charged for account interest. I thought the bnpl amount will be spread and I will be paying only that, but now it's interest on interest. So is it right?
I can't find my acc agreement and I can't find info on littlewoods website.
Thanks in advance

_Andy_

melynaake wrote: »

Hi, I want to ask about Very acc & bnpl interest. I bought smgt on bnpl offer.

In English?

opinions4u

I'm assuming you mean "buy now pay later".

I googled (other search engines are available) "Very buy now pay later" and it came up with this link.

The wording at the bottom of the screen states:

Buy Now Pay Later is subject to the stated minimum cash order value and account status. Interest will accrue from the date of purchase but will not show on the account until the first statement after the expiry of the deferred payment period. You can avoid paying interest by contacting us and paying the cash price in full before the end of the deferred payment period. All Financial Services products, delivery and installation charges are excluded from this offer. Rewards will not be earned on any purchases made on Buy Now Pay Later credit terms, which is valid until 04.01.2013

In other words, if you don't pay it off during the interest free period you pay interest from the date of purchase.

That's common with this sort of agreement. In future I suggest you read the terms and conditions before signing up for any credit. Or better still, save up and buy the goods cheaper elsewhere.

I'd also strongly recommend avoiding text speak or abbreviations. It makes it difficult for old codgers like me to understand what you're trying to say! I've just spent 5 minutes wondering if you're talking about Banque National de Paris or a right wing political party.

I also pondered what "smgt" is. I'm currently working on the theory that it's some sort of skin massage genial therapy treatment, but my search engine suggests it's an Australian training company.

CRISPIANNE3

melynaake wrote: »

Hi, I want to ask about Very acc & bnpl interest. I bought smgt on bnpl offer. And I didn't pay be the end of bnpl period. So the bnpl amount was added to my account. But I also saw on my statement that I'm charged for account interest. I thought the bnpl amount will be spread and I will be paying only that, but now it's interest on interest. So is it right?
I can't find my acc agreement and I can't find info on littlewoods website.
Thanks in advance

I bought a b.n.p.l item and with me it was clearly highlighted that if I did not pay the outstanding amount of the end of deal they would add £63 interest. It is so very clearly laid out but alas so many people do not read the small print or their statements.

All you need to do is look at your statement and everything will be revealed.

UsetheFORCE

They don't do these BNPL offers out of goodwill, people often get caught out by this...next time, read what you are actually signing upto!!!

System

Sorry for abbreviations, bad habit. I did read the agreement, but I understood, that account interest is payable only if the payment is late or if I didn't make a take3 payment, but not on top of buy now pay later interest.
So for instance item costs £200 plus £50 interest. The £250 amount would be charged to to my account and I will pay only this amount, not 'plus' the account interest charged on top of £250.

SnowTiger

melynaake wrote: »

Sorry for abbreviations, bad habit. I did read the agreement, but I understood, that account interest is payable only if the payment is late or if I didn't make a take3 payment, but not on top of buy now pay later interest.
So for instance item costs £200 plus £50 interest. The £250 amount would be charged to to my account and I will pay only this amount, not 'plus' the account interest charged on top of £250.

You misunderstood the terms of the offer.

very.co.uk is quite upfront about how BNPL works. This page about BNPL is linked to from their home page. It contains:

Interest will accrue from the date of purchase but will not show on the account until the first statement after the expiry of the deferred payment period. You can avoid paying interest by contacting us and paying the cash price in full before the end of the deferred payment period.

And when a BNPL deal is coming to an end they add wording such as this to your statement:



It all seems extremely clear to me.

UsetheFORCE

They are deferring payment for a period of time, they are being kind enough to write off the interest if you pay the cash amount by the date they state, If you fail to do so you pay the consequences for your failure.

Interest is calculated monthly and added to the amount outstanding, so naturally, the next month will include interest on interest and so on.

They do BNPL in the hope that a good proportion of people don't settle by the due date and have to pay the interest.

Better_Off_1983

I tend to buy things on buy now pay later and it says that you do not pay interest for 12 or so months.

I tend to pay monthly as soon as the item(s) has been delivered rather than wait until it appears on the statement. Paying for the item when the interest is applied is not really wise - its like when people take advantage of the 0% balance transfer on a credit card and only pay the minimum every month rather than divide the total amount by the amount of months of the interest free period. Then then 'tart' around for another 0% card only increasing their debt.

I am guessing smgt means 'something' literally?

System

Yes, I pay for my buy now pay later offers on time too, but it's so happened that I didn't get enough money for one item. If I knew I'd have to pay interest on interest I would have asked someone to lend me the money. In the t&c they use just 'interest', they don't specify that,' from now on we are going to charge you monthly/account interest too'. I understood I only will be liable for the interest that accrued during the deferred period.

And yes, smgt (had to be smth) means something.

Thanks for your answers. Lesson learned.

SnowTiger

melynaake wrote: »

Yes, I pay for my buy now pay later offers on time too, but it's so happened that I didn't get enough money for one item. If I knew I'd have to pay interest on interest I would have asked someone to lend me the money. In the t&c they use just 'interest', they don't specify that,' from now on we are going to charge you monthly/account interest too'.

So you found the terms and conditions? Well done.

They contain this:

To make the most of our BNPL offers, it is important that you understand how and when we charge interest on them. Selected purchases may be available on one of the following BNPL offers;

If the offer does not attract interest during the deferred period the BNPL purchase will be charged to your account on the first statement for which the payment due date occurs after the end of the deferred period. Once it is charged it will be part of your current balance and will become liable for interest and payment, but no interest will accrue on the purchase until it is charged to your account.

If the offer does attract interest during the deferred period, interest will accrue from the date of purchase. The BNPL purchase will be charged to your account on the first statement for which the payment due date occurs after the end of the deferred period. Once it is charged it will be part of your current balance and will become liable for interest and payment. If the BNPL purchase is not repaid in full by the first payment due date after the end of the deferred period the accrued interest will be charged to your account. If you don’t want to pay interest on either offer, you must pay the full price of the relevant purchase and notify us that you are making payment specifically on your BNPL purchase. You can do this by targeting a payment online through My Account or contacting us on 0844 822 8000*. The payment must clear the BNPL purchase in full by the due date shown on your statement. If you are not sure how buy now pay later offers work please call us on the above number.

Again, this seems extremely clear to me.