Sofaworks / Laser Finance / Creation Financial Services

Alumb05

Hi

I bought a sofa from Sofaworks last December and i stupidly decided to get it on one year interest free credit. I missed the payment date but i wasn't too worried and expected to have to pay a bit of interest as i was 18 days late. I called Laser Finance (a part of Creation Financial Services) and they told me that my £2,200 bill had risen to £4000 but if i paid it off in full it would make it £2,950. I guess they have this covered in the Terms and Conditions somewhere but surely this can't be right.

I claimed bank charges back a few years ago because it was deemed 'unfair' so is it possible to do the same thing here or something similar? Has anyone else ever experienced this? I realise it is my own fault for not reading the terms and conditions in detail but this just seems ridiculous. Do i have any options apart from simply paying this off?



Thanks in advance

molerat

According to the agreement you signed interest is charged from the day of the loan but if you pay off by the agreed date then that interest is waived. You have had their money for a year at around 35% APR which is where the £2950 figure comes from. The £4400 will be the total to pay over the agreed repayment term.

Bmth100

They've simply backdated interest from the start of the Agreement, which is how these things usually work. You wouldn't be able to claim it back as unfair charges because it'll have been in the Agreement from the beginning; it's how these companies make money, they rely on people who miss the payment date or forget to clear it in time to avoid the backdate.

Alumb05

Thanks for the responses, looks like it's an expensive lesson learnt :-(

bearcat16

Alumb05 wrote: »

Hi

I bought a sofa from Sofaworks last December and i stupidly decided to get it on one year interest free credit.
Thanks in advance

Nothing stupid about taking interest free credit when it's offered.

You do have to stick strictly to the term and conditions though!

Pay it off if you have the cash handy, if not you could put it on a new 0% credit card.

forgotmyname

As above zero interest can be useful and some use it and earn a bit of money in the process, if you have the funds and they offer 0%, they stick the money in an account that pays interest and pay it off before its due.

You really need to be careful though, as you found out. Paying late and not paying it in full can be costly.

I remember threads where people assumed they paid it all off and then hit with bills because there was a small amount left outstanding, I assume they have stopped that now though?