Interest free loan (price increased to cover interest)

mdjohnst

This is happening at a dental practice which offers interest-free payment plans on treatment.
The course of treatment costs £1000 which is offered to patients who pay without taking on a loan.
If the patient wants to accept the interest-free offer, the cost is inflated by 10%.  The patient is then offered an interest-free loan of £1100
This fee is not disclosed to the patient so in my opinion this at best is dishonest and at worse illegal as this is technically not interest-free.
I have trawled the internet for an answer but cannot find anything.

superbigal

A cash price discount instead of the Interest free price is certainly not legal so I suspect if you can prove this they are on a sticky wicket.
This is why cash buyers never get anywhere in DFS style shops now.
Interest Free "should" cost the retailer roughly 6% on a deal with the finance company.  Statistics say it increases sales by possibly 50%.   The finance house also profits by people missing the deadlines etc.

jonesMUFCforever

mdjohnst said:

This is happening at a dental practice which offers interest-free payment plans on treatment.
The course of treatment costs £1000 which is offered to patients who pay without taking on a loan.
If the patient wants to accept the interest-free offer, the cost is inflated by 10%.  The patient is then offered an interest-free loan of £1100
This fee is not disclosed to the patient so in my opinion this at best is dishonest and at worse illegal as this is technically not interest-free.
I have trawled the internet for an answer but cannot find anything.

What did the dental practise tell you after you asked them about this?