Should you be Notified When a Buy now Pay in 12 months deal is due to be paid back

Realist_49

I fell foul of what appeared to be a decent offer. Buying a "Managers Special" computer from Staples ( which I could have paid for from my existing cards) I felt pressured into taking a Buy Now and pay in 12 months deal! At the end of the term I received a Letter for The Clydesdale bank Informing me I was now in a credit agreement to repay the sum over 3 years which they were taking money from my current account. Ringing their call centre I was told they (or the supplier) were under no obligation to inform me that this was due to happen so I could close the account by paying the full amount. I suggested this was " sharp practise and I should have the opportunity to shut the account. I was told to be careful in what I had said and I could close the account by paying double my initial purchase price. Is this Legal practise or should the Retailer and finance company be avoided like the plague?

jonesMUFCforever

You were told the deal at the beginning.
Companies like these bank on you forgetting to pay back otherwise they would be uneconomical to run.

Nebulous2

BNPL deals often seem to come with tripwires to catch the unwary. Unfortunately it is up to you to keep track of these and pay it on time. If you don't make it then interest at often high rates start from the time you took out the deal.

Lots of people seem to manage them very well and get lengthy loans at 0% interest. These are balanced by many people who don't manage them so well and pay enough interest to cover both types of people's interest.

elle_may

And you have the money in their bank before the due date, many people don't allow for this.

bearcat16

Realist_49 wrote: »

I suggested this was " sharp practise and I should have the opportunity to shut the account. I was told to be careful in what I had said

That's so funny!

"You need to be careful what you say, young man, there might be CONSEQUENCES"

I've seen this before, and in my opinion, will probably be the subject of regulation before long.

Basically the finance company says it's a credit agreement with X% APR (usually quite high) but they will waive any interest as long as you pay in full by a certain date, often 12 months or so.

They of course don't remind you and the day after the due date you become liable for the total interest for the previous 12 months, and get charged monthly interest going forward.

It's pretty disgraceful, but totally legal and widespread.

DCFC79

Shouldn't be down to the finance company to remind you its due (some may do it), its down to the customer to remember.

27col

Your loan, your responsibility.
How about taking responsibility for your own actions.
I would have thought that everyone who frequents these forums would know by now that BNPL only works because they rely on people not taking any notice of the terms and conditions.

mcpitman

DCFC79 wrote: »

Shouldn't be down to the finance company to remind you its due (some may do it), its down to the customer to remember.

27col wrote: »

Your loan, your responsibility.
How about taking responsibility for your own actions.
I would have thought that everyone who frequents these forums would know by now that BNPL only works because they rely on people not taking any notice of the terms and conditions.

Couldn't agree more.

I'd have thought the "12 month, buy now pay later" was a fairly big give away that 12 months after purchase you need to pay the balance.

DCFC79

mcpitman wrote: »

Couldn't agree more.

I'd have thought the "12 month, buy now pay later" was a fairly big give away that 12 months after purchase you need to pay the balance.

I guess it could be likened to insurance that auto renews with the customer forgetting that it is on auto renew.

poppasmurf_bewdley

bearcat16 wrote: »

That's so funny!

"You need to be careful what you say, young man, there might be CONSEQUENCES"

I've seen this before, and in my opinion, will probably be the subject of regulation before long.

Basically the finance company says it's a credit agreement with X% APR (usually quite high) but they will waive any interest as long as you pay in full by a certain date, often 12 months or so.

They of course don't remind you and the day after the due date you become liable for the total interest for the previous 12 months, and get charged monthly interest going forward.

It's pretty disgraceful, but totally legal and widespread.

Doesn't anybody use a diary these days? So simple to write in an entry saying 'Pay ??? deal by today'.

And who, in their right mind, has a 'rogue' direct debit floating about in their current account for a year without knowing about it?

glentoran99

poppasmurf_bewdley wrote: »

Doesn't anybody use a diary these days? So simple to write in an entry saying 'Pay ??? deal by today'.

do you have a 2017 diary yet?