Studio.co.uk minimum payment on credit agreement

jenmarmaduke

Studio have told me the only option for direct debit on their credit agreement is the minimum payment. Is it legal to only offer this option? At 49.9% APR I can see why they’re trying it on. They told me if I want to pay more I must use other methods to make manual payments.

They also added something called “Interest Saver Plan” to my account without my consent. I’m still unsure what this is exactly.

I’m thinking about complaining to FOS but wanted to check if they’re doing anything wrong first. It seems wrong that they should only allow you to pay the minimum on direct debit when this is widely known to be a bad option if you can afford to pay more.

Nile

Hi, we move threads if we think they’ll get more help elsewhere (please read the forum rule) so this post/thread has been moved to another board. If you have any questions about this policy please email forumteam@moneysavingexpert.com.

I’ve moved your thread from the ‘I wanna’ board to the ‘Credit Cards’ board.

Regards

Nile

Carrot007

They have no requirement to even offer a DD. So yes they are fine.


I'm sure it takes 20 seconds to make a payment online.

Ben8282

I agree that it's not very good to only offer a minimum payment direct debit option but unfortunately if that is the way they want to do it, that is their right. As stated in the previous reply, they are not obliged to offer a direct debit payment option at all just as you are not obliged to make use of the 49.9% APR credit facility that they have extended to you. If you pay in full at the time of order by credit or debit card you can avoid the interest and the inconvenience of their direct debit policy. Alternatively, as their account appears to work in the same way as a credit card and they don't charge interest if you pay the full statement balance by the due date, just log on and pay by other means. They accept debit and credit cards. They are not doing anything wrong so there is little point in reporting them to anybody.

With regard to this 'Interest Saver Plan', I have no idea what it is either so best if you contact them directly and ask them about it. I would assume that you agreed to it when signing up for the account, perhaps unwittingly by failing to opt out of it. If it is costing you money and you don't want it suggest you get in touch with them and tell them that you no longer require it.

Finally, welcome back to the forum after an absence of exactly 10 years. Your 1st post was made at 2145 on 6th January 2010 and your 2nd post at 2149 on 6th January 2020.

Willing2Learn

What is Interest Saver
Interest Saver is a credit option on your account that allows you to spread the cost of an order without paying any interest for a specific time. We call this an Interest Saver plan. Our Interest Saver plans can run for 3, 6 or 9 months depending on how much you spend.

How does it work?
Whenever an Interest Saver plan is available we will tell you how long it will last for and how much you need to spend to be eligible for the offer. Don't worry, we will tell you if your order qualifies when you checkout. We make sure that no interest is added to your account for the eligible order, but if you already have a balance on your account you may still be charged interest on that amount. We will charge interest once the plan ends.

https://www.studio.co.uk/relative/your-money/interest-saver

Ben8282 wrote: »

welcome back to the forum after an absence of exactly 10 years. Your 1st post was made at 2145 on 6th January 2010 and your 2nd post at 2149 on 6th January 2020.

Wow...talk about sharp observation skills...