Currys 0% for 12 months

gargans

I feel such a fool. I consider myself MoneySaving aware, and so when on the look out for new TV I scoured the market. It was just after Christmas, and I had a little cash but not really enough, and so had resigned myself to waiting a couple of months. Until i saw a deal i thought was perfect.
Currys had a TV I wanted, at a price which was on a par with the best I had seen (from reasonably reliable stores/websites) but better still it was 0% for 12 months and I did have to pay anything for 12 months. It was New Years eve and the store was just closing. I asked the salesman how that worked. He explained that i would be billed in 12 months time, if i didn't pay it would go onto a credit agreement and interest would be charged.
Seemed reasonable, I would have 12 months to save up the £300 quid, and so I wouldn't have to worry about the credit agreement. I signed a document with HFC and off I went with my TV with the shutters rolling down behind me.

A month later I received a letter from HFC outlining the agreement, it made no mentioned of a chance to pay the outstanding amount up front, it just set out the monthly payments that would start next December 31st. - this worried me greatly. I wrote to HFC, and they stand by the signed document. Which means I would pay £500 for a £300 TV !

I visited Currys, they have no knowledge of the promotion, and think I am just trying to wriggle out of it. I feel such a fool. I know I should have read the agreement, but I discussed it with the salesman, and was happy with how it was explained. It was also, as I mentioned, just as they were closing up for New year eve - everyone was in a hurry to get home.

Two questions therefore. Am I the only muppet who fell foul of this? I have admit i would take some comfort in knowing i am not the only one, and would appreciate the benefit of hearing if you have managed to resolve the matter. Secondly, where can i go to get details of that promotion? Surely there must be some historic record of the promotions shops offer, so that when I revisit Currys I can argue with the benefit of some evidence.

Hope you can help.

Poppycat

These sort of deals are quite common, I am note sure if Currys run it but others stores do. You pay the amount of interest on the loan for the full backdate if you dont pay on time

It seems you were mislaid by the salesman, did you have a witness at the time which may prove

I think I would write a letter to Currys (keep copies) and a complaint about being miss sold the tv on a financial deal. I wonder if the FSA can help with this.

gargans

no witnesses i am afraid. My wife and kids were in the car. Funnily enough, she said whilst i was in there, she notice the promotion signs being taken down. This is why I want to find out if a record of promotions are held anywhere.

Bagger

Gargans, I feel you are being misled here. You did not give actual dates. I assume that when you said you have to start paying on December 31st, I suspect you meant Dec 31st, 2008. If that is the case, then it looks as if Currys are running their 0% offer.

The way these things work is that you do not have to pay anything for 12 months. If you settle the account before the 12 months, you do not need to pay any interest. However, if you paid all the money except £1, say, then they charge you interest on the full amount backdated to when you purchase the TV!!! I would check this out again with the finance company. They sometimes make it difficult to pay, unless on their terms. Remember, the finance company does not make much if you settled your account in full before the 12 months are up.

Bagger

gargans

Thanks for your reply.
Purchase was made on 31st December 2007, and payments are due to start December 2008.
I understand the finance companies incentives - Currys said I would be advised of a debit to be made in December 2008, only if I could not make that payment, would the credit agreement commence. This is the only opportunity I beleive I have to make the payment prior to the credit agreement starting. So yes, you are right, they are not making it particularly easy. Yes I would have liked the comfort of paying it sooner, but I understood and was happy with that.

When I received the credit agreement from HFC however, and it made no mention of this one off payment opportunity, I became suspicious.

If this is the situation, I have no doubt i have been mis sold, but I am wary that it is merely my word against Currys. Whilst the actual promotion may make it clear, certainly the headline advertisements in the shops were not clear, and the salesman absolutely mis sold it. However on my last visit to Currys, when I mentioned the promotion, they just looked at me blankly.
So I would like to find the terms of the Promotion as advertised, so that I can see that either i am correct, and I expect Currys to confirm there will be an opportuntity to pay the outstanding amount prior to the credit agreement starting, or that the promotion says otherwise, and I have been mis sold.

Again, all help/advice welcomed.

Gogz

loobylee

Hi Hon

Have had one of these CA from HFC before. As long as you pay before the 12mths is up and pay the £25 fee for paying the balance in full you will not be charged interest and the account will be closed.

Hope this helps

gargans

Hi Loobylee. Whats a CA

loobylee

Hi Hon

CA is a Credit Agreement

finbow

What the others said is correct...currys don't offer any other credit agreements allowing payment to start after a year except for the one that the employee explained to you.

So you should be able to pay the full balance with no interest bar £25 admin fee in 12months.

Sounds like its HFC who have made a mistake not currys in this case.

gargans

Thanks guys, I think this has cracked it. I think Currys are acting no better than a company who employ teenagers as front of store staff. HFC however are being their usual less than helpful selves.
When I wrote to HFC telling them I expected to be able to pay off the original amount prior to the 12 month period and the CA (Hey Looby, I'm hanging with the MSE posse now!) starting, they seemed to have just ignored my letter and just sent me a copy of the CA with what they said " the relevant sections highlighted".

Those relevant sections were:
Key Financial Information - the section which shows the amount borrowed, and the total amount to be paid back over 48 months.
Customer Signature - mine
and the Direct Debit Instructions.

Call me a cynic, but do you not think it would have been helpful at this stage to highlight the "Early Repayment Option" section which was on the same page, and which as Loobylee and Finbow both point out allows me to repay the original amount plus £25.

Eee, you have to keep an eye on these canny finance companies!

many thanks for your help:T

vitez

loobylee wrote: »

Hi Hon

Have had one of these CA from HFC before. As long as you pay before the 12mths is up and pay the £25 fee for paying the balance in full you will not be charged interest and the account will be closed.

Hope this helps

Hi I have just enetred the same agreement as gargans, but got suspicious as soon as I returned home. I never buy things in this way but I thought I would this time as the deal seemed really good. I havent even received any papers in the post from HFC yet but I was just curious as to how you can make the full setelment? Do HFC give you an option to pay x amount on the first date? Or would I need to send them a cheque?

Thanks in advance for any advice.

V