Littlewwods/kandco etc

gh4662

We use Kamdco to buy beauty products when they are on special offer as they are usually available cheaper than anywhere else including QVC and with 12.5% back even more of a bargain.

The reason for the post is the lack of transparency of the statements, we bought some items on a 20 week account and some were deferred on a BNPL account. There is no way to know what is left to pay on the 20 week account as it is lumped in with the BNPL figure so you have to contact them to find out what is due, I queried this and was just told we don't tell people what is owing on any item.

Secondly, although it doesn't affect us as we always pay off BNPL items before the interest is added, there is nothing in the terms and conditions about early payment of the amount due and interest accordingly. So it would seem that you can have interest added, pay it off within a day and still get charged a years worth of interest. I have queried this a number of times and never get an answer from kandco, just a response which says, "we publish our t&c's on our website"
My question is, can they advertise an interest rate as an APR % if if it basically a fixed charge not related to the amount of time that the
loan is live?

[Deleted User]

Yes, all BNPL works this way.

SnowTiger

gh4662 wrote: »

Secondly, although it doesn't affect us as we always pay off BNPL items before the interest is added, there is nothing in the terms and conditions about early payment of the amount due and interest accordingly. So it would seem that you can have interest added, pay it off within a day and still get charged a years worth of interest. I have queried this a number of times and never get an answer from kandco, just a response which says, "we publish our t&c's on our website"
My question is, can they advertise an interest rate as an APR % if if it basically a fixed charge not related to the amount of time that the
loan is live?

Credit cards work, mostly, in a similar way. If you don't pay your statement in full you're charged interest on purchases from the the date they're made.

Paying early is paying for the item before the BNPL period ends, not one day afterwards.

Look at it this way: when you purchase an item on BNPL interest still accrues, but if you pay for the item before the BNPL period ends you don't have to pay it. If you pay one day late, the interest you pay isn't for the next x months, it's for the time the BNPL covered, plus future interest will be added.

gh4662

But if it is deferred for 12 months and then payable over a further 52 weeks and you pay it after 12 months and one day, I agree u should pay interest for the first 12 months (the BNPL) period but why is there no reduction in interest payable for the further 52 weeks?

An answer of BNPL is all like that doesn't really address the question, it's the same as saying " all PPI is like that' several years ago

gh4662

And if you bought the item on BNPL, paid 50% of the item price a day after placing the order why would you still pay the full amount of interest.

tomtontom

If you have to use credit to buy beauty products perhaps you would benefit from buying cheaper brands? There is a thread on the beauty board about dupes you may find helpful.

gh4662

Who said I needed credit to buy them, if you had bothered to read the first post I quite clearly said that these products were unavailable anywhere else at the same price, so was actually saving money.

gh4662

I am concerned that people are being ripped off by misleading advertising though.

tomtontom

gh4662 wrote: »

Who said I needed credit to buy them, if you had bothered to read the first post I quite clearly said that these products were unavailable anywhere else at the same price, so was actually saving money.

Then it would make sense to pay them off straight away.

The advertising is not misleading - as already said, what you describe is exactly how BNPL works. It seems you had the same type of misunderstanding with Next - perhaps it is time for you to review your understanding of how credit works?

gh4662

The same Next who admitted they were wrong and refunded the money?
I understand perfectly how credit works and certainly was right in the case of Next that u cannot advertise a daily interest rate then add a months worth of interest if it's paid off within a day.

I feel that terms and conditions should be clear for the average Littlewoods customer, the fact that customer service have now replied saying they don't know the answer and have had to refer to another department proves they certainly don't understand their own t&c's

SnowTiger

gh4662 wrote: »

But if it is deferred for 12 months and then payable over a further 52 weeks and you pay it after 12 months and one day, I agree u should pay interest for the first 12 months (the BNPL) period but why is there no reduction in interest payable for the further 52 weeks?

An answer of BNPL is all like that doesn't really address the question, it's the same as saying " all PPI is like that' several years ago

You don't pay interest for the next 52 weeks. You only pay the deferred interest.