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MSE News: The '0% store card' that's not 0%
Former_MSE_Guy
Posts: 1,650 Forumite
in Credit cards
This is the discussion thread for the following MSE News Story:
"A store card claiming to offer a 0% annual percentage rate (APR) actually charges over 139% on some typical borrowing ..."
"A store card claiming to offer a 0% annual percentage rate (APR) actually charges over 139% on some typical borrowing ..."
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Comments
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Tell us something we dont know! Been all over the boards for month probably years. Glad you picked up on it though.0
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I think it's good that MSE is finally acknowledging this company. Many people have been scammed by this company, of course the majority of these people didn't bother to take the time and read the terms and conditions yet they still come crying about E-Platinum taking their money.
One thing the article didn't mention was the highly inflated prices in their E-Platinum Shopping club thingy. One user reported that products such as TVs were incredibly expensive, it would work out much cheaper by getting a door step loan or even a payday loan.
On the upside, they have refunded people who fell for this scam.We’ve had to remove your signature. Please check the Forum Rules if you’re unsure why it’s been removed and, if still unsure, email forumteam@moneysavingexpert.com0 -
"The Office of Fair Trading says firms normally have to include fees in their stated APR"
Ok..well this company isnt doing that. "normally have to include fees"? What does that mean? Do they ahve to or don't they? Are the OFT doing anyting about this?0 -
Once upon a time, few cards charged handling fees for balance transfers. Hell, I can even remember when card companies were scrambling over each other to discount each other's debt by the negative equivalent of a handling fee in order to grab market share. Yes, you heard me right - transfer a balance to a new card and end up owing 2 or 3% less than you owed last month
So, why has the OFT allowed all the card companies to promote balance transfers at "0%" when front-ended handling fees have been standard cartel practice for years now?
A 3% up-front handling fee for a 6 month 0% deal translates to well over 6% APR for example, especially since any debt remaining after 6 months is at a 'normal' (20%?) rate.
The card companies are just greedily filling their snouts from the accounts of customers who are none the wiser whilst the OFT is busy looking the other way.0 -
peterbaker wrote: »A 3% up-front handling fee for a 6 month 0% deal translates to well over 6% APR for example
Well.. 6.09%...peterbaker wrote: »especially since any debt remaining after 6 months is at a 'normal' (20%?) rate.
Yep agree with that. I think APRs should be based on a year's borrowing, ie taking into account the follow-on rate. There would be nothing to stop companies also quoting the actual rates alongside. Eg "6 months 0% interest + 3% fee, APR 15%".peterbaker wrote: »The card companies are just greedily filling their snouts from the accounts of customers who are none the wiser whilst the OFT is busy looking the other way.
Actually I've been pretty greedily filling my snout with cheap credit over recent years. I hope the OFT continues to look the other way - too much "responsible" lending in my case means too much nannying. I know how much debt I can take on. If CC companies think I'm not worth the risk, fair enough. But if they feel can't lend because they've been told to protect me from myself.. well...0 -
You sure about that? You clearly haven't covered all the bases in calculating an APR for a front-ended fee. And if I and my friends offer you £250,000 on your credit cards and you take on what you think you can afford, what are you gonna do if I and my cartel mates then call in that debt you knew you could take on? Hey we can turn that debt into the most scarey monster you ever saw! And what if we simultaneously up the handling fee for new balance transfers to 10% because we find you and tens of thousands of other clever dicks actually borrowed more from other lenders than you told us you had borrowed?I know how much debt I can take on.
Think we can't do that? When was the last time you read the changes to your Ts & Cs that drop through your mailbox like confetti ? - Hell we may have already set the train in motion to catch you out, boy - your snout will come out so fast it'll glow red hot and then freeze and drop off 
... unless you know something I don't 0 -
I tried to look on their website to see if they had any good deals, but couldn't see any prices unless I registered? how much is a 50 inch tv for example?0
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I got an email about this the other day. Don't normally reply or take any notice of spam, but had a look as I knew this was probably too good to be true - to be fair the fees are clearly stated and quite high in the credit agreement (1.something if I remember correctly), so anyone that doesn't notice this only has to look at themselves and their failure to read the terms.
Plus the prices being over the top doesn't surprise me. I'm with Home Shopping Direct/JD Williams, and their prices seem expensive, I'll only use them if, after looking around, it works out cheaper than elsewhere - but paying those fees people probably flock straight to that website so they get what they think is value for money having paid the fees!0 -
peterbaker wrote: »You clearly haven't covered all the bases in calculating an APR for a front-ended fee. And if I and my friends offer you £250,000 on your credit cards and you take on what you think you can afford, what are you gonna do if I and my cartel mates then call in that debt you knew you could take on? Hey we can turn that debt into the most scarey monster you ever saw! And what if we simultaneously up the handling fee for new balance transfers to 10% because we find you and tens of thousands of other clever dicks actually borrowed more from other lenders than you told us you had borrowed?
Think we can't do that? When was the last time you read the changes to your Ts & Cs that drop through your mailbox like confetti ? - Hell we may have already set the train in motion to catch you out, boy - your snout will come out so fast it'll glow red hot and then freeze and drop off ... unless you know something I don't
If you disagree with the calculation perhaps you say what you think it should be rather than talk about these mysterious "bases" I haven't covered. 3% fee and 0% for 6 months, is 6.09% APR over 6 months. Sorry if the maths doesn't suit your argument.
As for the rest, well as I say I know how much debt I can take on. So the question of your mates offering me a huge amount of credit and then suddenly calling it in isn't going to arise because I'm not going to accept it on that basis. As for 10% BT fees or detrimental changes to T+Cs, well - for new deals I'll decline them. For existing deals, I won't take on a deal where the rate can be varied without my option to reject the change.
The only fear I have is from people with the same view as you - and that by whipping up emotion the authorities will believe I need protecting from myself.0
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