Argos - Interest?

[PinkGlitterGirl]

Can anyone tell me if this is correct, before I phone Argos and make an idiot out of myself!
I bought a TV on 9 months interest free credit. This was up on the 26th June. On 9th July I paid the balance in full. I have just recieved my statement, and they have wacked on £45 in interest! I assume this is the full 9 months interest... judging by the ammount... can they do this? I was not expecting that!! That just seems so sneaky! I had no idea that was what would happen - it was not explained to me when I bought the TV! I figured I would have a £1 or 2 where the few days of interest would have accrued... but £45??!!

[blitz]

If you read the terms and conditions of the Buy now Pay Later (or interest free periods for the 9 month one) terms and conditions it will state that if the balance is not paid off interest will be added on from the purchase date.

Quote: Argos Financial Services

What is Buy Now Pay Later?
A Buy Now Pay Later plan allows you to have what you want now and pay for it later when it's more convenient. You don't need to pay anything during the Pay Later period, although you can if you wish, it's entirely up to you. Simply pay the cash price before the Pay Later period is up and we won't charge you any interest (we will remind you when payment is due). If you don't pay in full at the end of the Pay Later period, interest from the date of purchase will be added to your account and you can then choose to pay as much or as little as you wish until the balance is paid off, subject to a minimum monthly payment of 4% of the balance or £2, whichever is greater. Our most popular plan is 6 months Buy Now Pay later when you spend over £195, but there are even longer periods available, e.g. up to 12 months on selected products. We will tell you when you can take advantage of these offers.

What is deferred interest?
Deferred interest is interest which is due from the date of your purchase. It can be avoided by paying off the Argos Card credit plan by the due date. So if you have a 6 month BUY NOW PAY LATER deal and you pay off the cash price any time up to the 6th month, then the interest won't be charged and all you will pay is the cash price. We'll even send you a letter with about a month to go to your payment date, to remind you of the amount you need to pay to avoid interest. If you choose not to clear the balance by the date it is due, then this interest, from the date of purchase, will be the same as if you had bought the item on the normal credit plan which attracts a typical 27.9% APR variable.

[2Grumpy]

Originally Posted by blitz

Simply pay the cash price before the Pay Later period is up and we won't charge you any interest (we will remind you when payment is due). If you don't pay in full at the end of the Pay Later period, interest from the date of purchase will be added to your account

That would be 9 months & a few days interest on around £250 then. Ouch. I guess this is how they make their money (at 27.9% APR!).

Did they remind you when payment was due? Did that allow time to pay? That would be your only channce for any sort of refund

[blitz]

In one of the last 3 statements you recieved you should have been reminded to pay the full amount off

[Rich44]

Yeah they do send you a formal reminder in quite blarge print too, sorry you've been caught out but to be fair to Argos they do make it clear this is the case unlike some

[PinkGlitterGirl]

No, I didnt recieve a reminder - I knew the date, because I recently returned an item bought on the same day (and on same reciept) as the TV.
Should also add that I already had the card at the time of purchase, with nil balance. I bought the TV on the card, as I was asked at the til if I had an Argos card. I replied that I did. The sales assistant told me if I put it on the card, I would have a 9 month interest free period as I was spending over £195.
I wasnt given any information that this interest would be piled on at the end. If I had, I would have paid in cash at the time, as I originally intended to. Ive ended up paying another £45 for a £260 TV. Am not impressed!

[Rich44]

The reminders come with your statement its printed in big letters on the statement that your interest free period is due to end on xx date not calling you a liar at all but this is where the reminders are although we have also had them seperately as well.

Sorry you have been charged this but it is how 99% of these interest free schemes work, they do have to get their money somewhere. I know its not good now but at least you wont get caught out again and it could have been worse you could have bought a £2000 TV and had back dated interest