Intrest Free Credit from BHS

mrseyes

I bought an item from BHS store, on 11 months interset free credit, completed all paper work including direct debit form giving my bank details etc, paid deposit on 6th October 07, money came out of my bank on the 8th October.

Its is now December and they have not taken 1st installment as yet and and was wondering why.

I will ring them on Monday but i am thinking whether i was supposed to let my bank know or do they do this.

Zebedee69

DD's are normally setup by the company your doing business with.....

Its worth a call to see if there was a mistake setting up the DD.

Thomas_Crown

mrseyes wrote: »

I bought an item from BHS store, on 11 months interset free credit, completed all paper work including direct debit form giving my bank details etc, paid deposit on 6th October 07, money came out of my bank on the 8th October.

Its is now December and they have not taken 1st installment as yet and and was wondering why.

There are two types of interest free credit agreement. I think you should read the T&Cs to check which type of agreement you have entered into.

The first type is where you pay by direct debit each month for 11 months with no interest added to your account. At the end of the 11 months you owe nothing.

The second type is where you pay nothing for almost 11 months & settle your account in full just before this period is up & owe nothing more OR
you pay nothing for 11 months & then start to pay by direct debit until the account is clear.

If you choose to extend the second type of agreement into the direct debit phase then you will undoubtedly get hit with a high %AER. Tread carefully!

Zebedee69

Woo, I think its a good idea to have a DD into a savings account then so you can pay it all off after the 12 months lol!

Thomas_Crown

Zebedee69 wrote: »

Woo, I think its a good idea to have a DD into a savings account then so you can pay it all off after the 12 months lol!

Yes, that's a good idea, assuming of course that the OP has signed the type of interest free credit agreement that does not require any payment for 11 months.

Zebedee69

So in reality what your doing is a bit like stoozing.............?

Id get your cash into a nice high paying account right now!

mrseyes

Thomas_Crown wrote: »

There are two types of interest free credit agreement. I think you should read the T&Cs to check which type of agreement you have entered into.

The first type is where you pay by direct debit each month for 11 months with no interest added to your account. At the end of the 11 months you owe nothing.

The second type is where you pay nothing for almost 11 months & settle your account in full just before this period is up & owe nothing more OR
you pay nothing for 11 months & then start to pay by direct debit until the account is clear.

If you choose to extend the second type of agreement into the direct debit phase then you will undoubtedly get hit with a high %AER. Tread carefully!

Infact when i looked at the paper work it does state the monthly amount i should be paying for next 11 months.

4sibbs

My niece bought a laptop from Curry's costing 429.99, in addition she purchased antivirus software 29.99 & was 'conned' into paying a PRODUCT SUPPORT fee of 7.99 a month to Curry's for a breakdown cover she does not need as the manufacturer offers a warranty.

The agreement is 12 months interest free credit, the contract is shown as a Fixed Term Loan agreement if she opts to pay monthly after the interest free period ends. They have worked out the payments on the total amount of 467.97 over 48 months which means a 429.99 laptop will cost her 870.24. They have included the antivirus software & the first PRODUCT SUPPORT payment in the total amount (which she has already paid by direct debit) meaning they are charging her interest on both of these e.g antivirus software will actually cost her £150.

We have picked this up & advised her to pay the full amount before this agreement commences but many others would not can this be legal or another con by these unscupulous companies?

CLAPTON

how much was the product
how much is the monthly payment