Littlewwods/kandco etc

SnowTiger

gh4662 wrote: »

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

Not ripped off. Only misunderstanding how BNPL works.

I have Very and Isme accounts. The information they supply about BNPL is very clear. And customers are notified in advance when BNPL is coming to an end and how to avoid interest.

SnowTiger

gh4662 wrote: »

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

Unclear?

http://www.littlewoods.com/bnpl:

Choose to pay nothing for 12 calendar months - quote 4JX7G. This Buy Now Pay Later is subject to the stated minimum cash order value, account status and is only available with interest bearing terms. Interest will be calculated for the deferred payment period plus the repayment period. The deferred payment period will begin at point of order (including for those items which are purchased on pre-order and/or are not ready for immediate dispatch). You can avoid any interest by contacting us and paying the cash price in full before the end of the deferred payment period. This offer is valid until 31/01/2015.All Financial Services products, selected items, delivery and installation charges, unless otherwise stated, are excluded from Buy Now Pay Later, exclusions will be confirmed at the point of order. Rewards will not be earned on any purchases made on Buy Now Pay Later credit terms.

And customers are notified in advance when they need to pay. Very and Isme notify customers on every statement, I'd guess the same goes for littlewoods.

I'm not sure what you're misunderstanding about it.

Perhaps you're seeing the deferred interest added to your account and incorrectly assuming it's future interest. It's not. It's the deferred interest.

gh4662

My point is that surely the interest charge is based on a percentage over a period of time hence them quoting an APR?
If you order an item on BNPL then immediately (the day after placing the order) pay off all but £0.01p how can they then charge you the full amount of interest as you hadn't borrowed the full amount of money for that period?

And regarding how the interest is calculated from date of order to settlement ie 12 months plus 52 weeks, there is nothing in the t&c's about early settlement.

This from a trading standards website below, please notice the first sentence regarding a proportionate rebate on interest payable.

Early settlement is the term used when you pay off a credit agreement before it is due to end. It entitles you to a proportionate rebate on the interest payable on the agreement. The law provides that borrowers can settle most agreements early, provided certain conditions are met. There is a list of conditions including that the agreement is regulated under the Consumer Credit Acts of 1974 and 2006. Under section 97 of the Consumer Credit Act 1974, the borrower is entitled to know how much they have to pay in order to clear the debt. There are specific rules in relation to the amount and calculation of the rebate.