Beware Currys credit application

Penquite

I have just ordered a new Samsung heat pump tumble dryer from Currys as they are offering a £50 off deal plus 12 months interest free. The payments to be made by monthly DD. However, when the credit agreement popped up to sign, I noticed that the monthy payment they had set up, was not sufficient to clear the full amount in the interest free period. Had I only paid the amount requested, I would still have had £100 outstanding at the end of the credit period. This would allow them to backdate the full interest of 29.5% to the total cost of the appliance, back to the starting date. I wonder how many people they catch out with this little scam

Silvertabby

Penquite said:

I have just ordered a new Samsung heat pump tumble dryer from Currys as they are offering a £50 off deal plus 12 months interest free. The payments to be made by monthly DD. However, when the credit agreement popped up to sign, I noticed that the monthy payment they had set up, was not sufficient to clear the full amount in the interest free period. Had I only paid the amount requested, I would still have had £100 outstanding at the end of the credit period. This would allow them to backdate the full interest of 29.5% to the total cost of the appliance, back to the starting date. I wonder how many people they catch out with this little scam

Nothing new - we had this when we bought a tv from them the best part of 30 years ago.

The offer was 6 months interest free credit, but before signing the paperwork we noted that the DD amount was nowhere near enough to clear the amount due in that time.  Queried with the sales chap, and he said while he couldn't change the DD himself, we could contact the credit supplier ourselves to increase the amount to be taken (which we did).

Sales chap also said that most people didn't bother upping the amount because 'they liked saving money' by paying a much lower amount per month than they expected.  When I pointed out that paying stupid% interest over 2 years was NOT saving money, he just looked at me as though I was robbing him of his credit sales commission!

BethRobinson

So not a scam then?

Silvertabby

BethRobinson said:

So not a scam then?

No, not a scam.  Just something to be aware of.  

rollingmoon

BethRobinson said:

So not a scam then?

Advertising something as available interest free, and then setting up the terms of repayment to ensure that it isn't? Sounds like a scam to me.

IvanOpinion

This is not a scam, it is about adults taking responsibility for their own lives, using simple maths they they all had the opportunity to learn in primary school.

It is little different to credit cards, except that with a credit card you get the opportunity to make a single payment and if you choose not to make that for the full amount then you pay interest - the only difference is that, in such agreements, you have 6, 12 or whatever chances to pay the full amount.

It has been nearly 20 years since I took out one of these credit agreements, but if I remember correctly the paperwork did provide all the necessary numbers.