Confused by online price with Interest Free Credit

highheidyin

I am in an argument with a trader about the price they have advertised a product at, online.

They offer the item (a TV) with 12 months interest free credit but don't state the APR or the total price to pay and the wording of their ad was confusing so I asked for clarification.

Is there anywhere that shows what the rules are about displaying goods offered with interest free credit are? I don't think they would take me for a ride but would like to show them what should be done to avoid confusion?

cookie365

Well, if it's interest free credit the APR is zero and the total price to pay is the ticket price.

What's the problem?

Geodark

I think he is meaning more along the lines of buy now pay later. So you get 12months interest free, then if it isnt paid off it goes on tick.

neilmcl

As above, if it's interest free then then the total price to pay is the price advertised. Assuming there's no fees attached then the APR will also be zero.

Who is the retailer?

highheidyin

The ACTUAL price to be paid isn't displayed - it shows the deposit required and then seperately states that a number of instalments are required on certain dates so, you cant just glance at it and know the price - you have to read it and add the figures up, if you know what I mean.

I actually misunderstood it as it wasn't clear and thought I would be paying less than it works out to be. I thought there was legislation to avoid this confusion

unholyangel

highheidyin wrote: »

The ACTUAL price to be paid isn't displayed - it shows the deposit required and then seperately states that a number of instalments are required on certain dates so, you cant just glance at it and know the price - you have to read it and add the figures up, if you know what I mean.

I actually misunderstood it as it wasn't clear and thought I would be paying less than it works out to be. I thought there was legislation to avoid this confusion

If the agreement is a regulated one then they need to provide certain information (including interest rate and total payable among other things). If they failed to do this as part of the contract then the credit agreement would be unenforceable.

If they provide it before the contract is concluded by not in the advert, it may amount to a breach of the Consumer Protection from Unfair Trading Regulations 2008 if it is likely to mislead the average consumer.

bris

There is no such thing as interest free, shop about the TV will be cheaper elsewhere.


The retailer pays the interest and adds it to the cost of the product, usually at a higher rate than they get charged.

neilmcl

Again, who is the retailer?