We'd like to remind Forumites to please avoid political debate on the Forum... Read More » This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Interest free credit - How does it work?

Hazel_ · 2012-12-26 20:17:07

I get the basics as a consumer - You borrow x amount and if you repay it before the date specified you won't pay interest. But for a retailer how does it work? I'll use DFS as an example. They give you 4 years interest free credit, So if the suite costs £1000 and the credit is supplied by Bank A, Do Bank A pay DFS £1000?…

Options

Comments

Cornucopia Posts: 16,477 Forumite

28 December 2012 at 9:43AM

To be clear, and to be fair to DFS, their 0% is a simple HP-type scheme. The payments are equal and fixed in advance to clear the entire balance by the end of the interest free period.

Only people who run into difficulties would have any reason to incur penalties: either interest or fees.

0