Advice with Buy Now Pay Later at VERY

kattynel123

Hi all, please excuse me if I've not posted this in the best forum...

I need advice: :mad:
Last May I purchased a washing machine £185 from Very - Buy Now Pay Later, interest free for 12 months.
Then last September I purchased a fridge freezer on the same account, again BNPL for 12 months. It cost £230

Along the way I have paid bits off and made a few other purchases and in October of last year I paid a sum of £180 off the account. I admit I assumed this would be taken off the first purchase - the washing machine BUT it was used by Very to pay off the fridge!

I am therefore now in a position that I have the remaining amount of £180 to pay off the washing machine by 10th June instead of having until sept to pay for the fridge.

I have enquired with Very who have said there is nothing the can do to extend the payment date. I think this is wrong.. They should not have allocated my payment to the fridge which was a BNPL item. This is actually what they have stated in an email to me:

As the £180.00 payment made back in September wasn't targeted towards BNPL goods, it would automatically come off your normal shopping account which in this case would have included the fridge freezer.

Please help!! Is there anything I can do?!

molerat

They seem to be saying the fridge is not on BNPL. If you have paperwork to confirm it is then a complaint is in order.

All payments will be applied firstly in the following order;
1. Any Payment Protection Insurance premiums and then other insurance premiums (including, first, any arrears).
2. Any default charges and then any other charges (including, first, any arrears).
3. Any other arrears or overdue sums on the account.
If you have paid less than the minimum payment, we will then;
4. Repay items on the standard interest rate, If you have more than one item, we will apply to the oldest item first;
5. Repay items on Interest Opt-Out.
If you have more than one item, we will apply to the oldest item first; or If you have paid exactly the minimum payment, we will then;
4. Repay items on Interest Opt-Out, promotional interest rates and the standard interest rate pro rata; or
If you have paid more than the minimum payment but less than any applicable optional Take 3 payment, we will then;
4. Repay the minimum due for items on Interest Opt-Out, promotional interest rates and the standard rate pro rata
5. Repay items on promotional interest rates. If you have more than one item, we will apply payment to the highest interest rate first and if there is more than one item on the same interest rate, we will apply to the oldest item first.
6. Repay items on the standard interest rate, If you have more than one item, we will apply to the oldest item first;
7. Repay items on Interest Opt-Out. If you have more than one item, we will apply to the olderst item first; or
If you have paid exactly any applicable Take 3 payment, we will then;
4. Repay the minimum due for items on promotional interest rates, the standard interest rate, and any optional payment for Interest Opt-Out and Take 3 Facility pro rata; or
If you have paid more than any applicable Take 3 payment, we will then;
4. Repay the minimum due for items on promotional interest rates, the standard interest rate and the optional payment for Interest Opt-Out and Take 3 Facility pro rata.
5. Repay items on promotional interest rates. If you have more than one item, we will apply payment to the highest interest rate first and if there is more than one item on the same interest rate, we will apply to the oldest item.
6. Repay items on Interest Opt-Out. If you have more than one item, we will apply to the oldest item.
7. Repay items on the Take 3 Facility if applicable. If you have more than one item, we will apply to the oldest item.
8. Repay items on the standard interest rate, oldest item first.
9. If you make a payment that is more than the full balance for all items due for payment (including new purchases) and also have Buy Now Pay Later (BNPL) items which are not yet due for payment, we will apply the excess towards those BNPL items, starting with the item which will next become due.

TherealMandM

Why did you just not use the payment system to choose what it paid off.
Under make payments there is a option to pay bnpl.
Choose item, choose full or part payment and enter amount and done.

kattynel123

Thanks so much molerat... I'm just unsure how I can prove it was a BNPL. I purchased it as this, and it's obvious that I wouldn't have paid a chunk of it off before paying some off my previous purchase first but I'm not sure if there is any actual proof. When confirming to buy I'm pretty sure there isn't an option to state if it's BNPL - it just sits in the account until you pay it!

matmidgley - this is exactly what I should have done and I realise that this was my mistake at the time but I honestly didn't know that this was an option. I just assumed the money would be paid off the most historical item. Lesson learned the hard way! I am still hoping they can extend the BNPL as, in my opinion, knowing that the fridge was a BNPL the money should have been used for the washing machine.

Thanks for your help. I am still awaiting a reply from Very.

Vortigern

I have never seen such a complicated hierarchy of payments as that used by Very and posted by molerat at #2 above.

Just look at the numbering 'scheme' - there appear to be 5 number 4s, two of which are consecutive.

How do they get away with imposing such complex conditions on their customers, some of whom are relatively new to credit agreements?

Most (if not all) credit cards now have a hierarchy of payments which will pay off the most expensive debt first. Very should be forced to use a similar approach.

boo_star

Vortigern wrote: »

I have never seen such a complicated hierarchy of payments as that used by Very and posted by molerat at #2 above.

Just look at the numbering 'scheme' - there appear to be 5 number 4s, two of which are consecutive.

How do they get away with imposing such complex conditions on their customers, some of whom are relatively new to credit agreements?

Most (if not all) credit cards now have a hierarchy of payments which will pay off the most expensive debt first. Very should be forced to use a similar approach.

It's not that convoluted, frankly.

But I do think they've breached their own T&Cs in this instance.

GingerBob_3

boo_star wrote: »

It's not that convoluted, frankly.

But I do think they've breached their own T&Cs in this instance.

It is convoluted and complex - unnecessarily so. It's been designed by a moron with the express intention of causing confusion; confusion which can very easily lead to being shafted with late payment markers or worse, which are then published by the CRAs.


Why do people have anything to do with pond life such as Very?

molerat

OP, your complaint needs to be on the basis that the fridge was purchased on BNPL and as such any extra amounts should have been set against the earlier purchased BNPL - the washing machine - in accordance with their terms. Do not try to confuse matters by trying to get them to extend the washing machine terms. If they do not play ball then escalate to the FOS. http://www.financial-ombudsman.org.uk/consumer/complaints.htm