NEXT Directory Statement Interest?

[smartmartian10]

Anyone have any idea how NEXT apply their interest charges?

 

The statements and website state that they apply "a maximum monthly service charge of 2.014% added to your account when a balance is carried forward to the next month"

 

I have checked one years worth of statements and they are all over the place. Two of the months is a straight 2.014% on the balance carried forward. The rest are sometimes pennies sometime pounds different!

 

Anyone checked theirs? Anyone challenged NEXT?

[smartmartian10]

I wrote to Next regarding interest calculations and said

 

I have been looking at the service charge applied by Next to the statements on the above account for the last year. I am having trouble reconciling the charges.

I note from your website;

“There will be no service charge if you settle the account in full. There is a maximum monthly service charge of 2.014% variable (APR 26.49%) added to your account when a balance is carried forward to the next month.”

On the reverse of the statements it states;

“If full payment of the current balance, as shown overleaf, has not been received by the due date shown, an interest charge calculated every month at a maximum of 2.014% variable (APR 26.49% variable) will be made on the opening balance on your next statement.”

I have only one statement in the last year where the service charge is exactly 2.014% of the balance carried forward; the other eleven are all at varying amounts. Please forward a detailed build up to the service charge on the statements from March 2006 to March 2007.

[smartmartian10]

I now have a reply from Next (Bridget Parnell - Customer Relations)

 

"With regard to the query you raised concerning service charge, I can advise that a charge of 2.014% is applied to any balance outstanding from the previous statement. However, in addition to this, an individual charge is raised for each item billed on the new statement, for the number of days from when the approval period expired, to the date of the statement. For example, if an item was sent out on the 1st March and the statement date was the 6th, the item would appear on the statement dated 6th April. The approval period expires on 10th March, and so service charge would be applied for that item individually, for the period from the 11th March to 6th April. This is possibly the reason why the service charge does not equate exactly to 2.014% of the total amount billed on the statements you looked at, if those statements include new sales.

 

I will however, arrange for a breakdown of the service charges applied to your statements to be sent to you as as soon as possible."

 

So thats how they do it. But it is not what the statement and website say they will do!!!!!!

 

I have another (more important) issue with Next so for now I will not be tackling them further on this. But if anyone else has an opinion I would welcome it.

[smartmartian10]

Next have written back about the interest with details on how they calculated the interest for last year and it is (almost) all as above.

 

But guess what - one of the months even they can not make add up! So they have credited the account with 12p!

 

It surely can not be right that the statements and website say one thing and they calculate the interest another way! Anyway I will not be pursuing this for now as I have other issues with Next. Lots of other issues.

[Mike220359]

You got more back from Bridget than I did, the thing is they cannot say the add interest one way and then alter it with an addition, this really is legal dynamite and very serious for them. Could you scan the letter you got back from customer ralations and PM it to me, it may be the kick up the bottom that I need to do to sort out my wife's account.

 

Regards

Mike

[doo]

Interesting - am subscribing to this, will watch with interest while I try and get the default removed from Next.

[smartmartian10]

Mike - PM me with an email address and I will send you a scan of the letter from Next.

 

Regards

[smartmartian10]

No good, I couldn't resists. Have written back to Next and basically said your wording is very clear "maximum monthly service charge of 2.014%". I am somewhat confused that you are in fact charging above your self stated maximum!

Please advise me where it is stated you will charge in this manner.

[smartmartian10]

I have a reply from Bridget Parnell (this one she seems to have signed herself!)

 

"I have consulted our Legal Department, regarding your query, and can advise that the information about the way in which interest or service charge is calculated on new purchases, is contained in the 'Other Financial Information' section of the credit agreement."

 

Not sure why she needed legal department to tell it was written there! And this will be, in my case, the credit agreement that doesn't exist, she continues .....

 

"I note that this information is not in the original credit agreement issued to you when you opened the account with us and I have therefore spoken with our Fulfilment Manager [now thats a tough job title to do or great fun not sure which!] to establish how we inform our customers of any changes."

 

"I am advised that any amendments to the Credit Agreement, such as changes of interest rate or changes in approval period for example, must be communicated to customers and 30 days notice given. We notify all customers, either by enclosing details with their monthly statement, by e-mail if we have an e-mail address on file, or by sending a revised copy of the credit agreement (if the account has not been used for six months), each time it is updated."

 

I am not aware they can amend the Credit Agreement as she describes it!?!? Most companies revise the terms and conditions! Anyway she then enclosed a copy of the latest version of a credit agreement.

 

My opinion is this is just not right. Anyway as no agreement makes no difference to me. But I will pass the letter to the OFT people who are investigating and let them digest it.

[Mike220359]

Thats interesting, so they have two ways of calculating interest, I'm sure that the OFT will take great interest in that one (LOL)

 

I suppose the legal department is a way of scaring you, has it worked ?(LOL)

 

Mike

 

I wonder if the Fulfilment manager has a fulfilling job?

[JulesTools]

Full of something and it smells like male cows

 

My wife is having similar fun with Studio

 

Lisa Vs Studio