4% credit card charge on todays purchase

tferry21

On the 5th November 2013 I brought a laptop from Currys for the price of £529.
They had a "pay nothing for the first six months" deal, after which you had the option of paying off the outstanding balance or going onto a payment scheme where you paid £20.44 for 36months.
It all sounded pretty good to me, so I put down a deposit of £52 and walked out of the store with a shiny new laptop.
On the 9th April I get a letter from Creation Finance Ltd saying that my six months have almost expired and I have until the 5th May to pay the balance £501.10. This figure is the balance of the laptop PLUS a £25 administration fee.
Although I was annoyed about the £25 administration fee, I accepted it and today phoned their 0871 number to make my payment.
After going through the laborious automated system, giving my credit card details etc they hit me with the hidden charge of 4% on all debit & credit card payments.
4% on my balance of £501 is £20!!!!
So in addition to having to pay the "administration fee" of £25, they also add a charge of £20 for the privilege of paying by credit card.
So now I'm £45 out of pocket!
I'm so disgusted, Currys did not make clear at point of sale that these charged would be applied, in fact they sold it to me as six months interest free credit!

Do I have any recourse?

CLAPTON

what did the paperwork say?

dealer_wins

Send them a cheque!!

tferry21

Looking through the paperwork I have found details of both the 4% credit card charge and the £25 admin fee buried deep in the small print.
So I guess I don't have a leg to stand on. I still think its pretty duplicitous not to be totally clear about these charges at point of sale though.

[Deleted User]

if it was in the t&c`s i really dont see the problem,both are pretty standard practice for this type of argeement

grumbler

Credit and debit card fee clampdown begins

I would complain (to FOS?) abut 4% on principle.

tferry21

woodbine wrote: »

if it was in the t&c`s i really dont see the problem,both are pretty standard practice for this type of argeement

The problem John, is that these charges should be made clear to the consumer at the point of purchase so he can make an informed decision about how to spend his money. It shouldn't be standard procedure to rip people off in this manner.

antrobus

woodbine wrote: »

if it was in the t&c`s i really dont see the problem,both are pretty standard practice for this type of argeement

Yes, but it's consumer credit, isn't it? Doesn't the CCA require pre-contract disclosure?

The Consumer Credit (Disclosure of Information) Regulations 2010 are pretty specific about the sort of things that have to be disclosed before the agreement is made. Things like the "total amount payable" and "any other charges payable" etc; I don't think you can get away with hiding these things in the actual agreement anymore.

tferry21 wrote: »

...I'm so disgusted, Currys did not make clear at point of sale that these charged would be applied, in fact they sold it to me as six months interest free credit!

Do I have any recourse?

Complain. FOS.

osborn99

It doesn't matter what the t&c say. The maximum they could have charged you is £12.5. 2.5% of 501.10. Ring Currys and remind them of the new rules, you are entitled to a £7.5 refund

opinions4u

Although I was annoyed about the £25 administration fee, I accepted it

Was there an APR on the credit agreement?

As for the 4% card fee, pay using an alternative method that's free.

Hominu

osborn99 wrote: »

It doesn't matter what the t&c say. The maximum they could have charged you is £12.5. 2.5% of 501.10. Ring Currys and remind them of the new rules, you are entitled to a £7.5 refund

Currys have already been paid in full by Creation Finance, its the later who you need to remind of the rules. If the £25 wasn't included in the original paperwork as part of the "Total Amount Payable if paid within 6 months" then I'd be asking for a £32.50 refund.

Alternatively, pay with a cheque and request a £25 refund.