Argos add interest on "interest free credit"

[MRSWESTHAM]

Hi Guys

 

This might be dumb but id appreciate any input.

 

OH bought a leather recliner cair from argos and chose inerest free credit.

 

Pais off more than minimum each month. 4 lots of £50 and then called to ask how much he owed as wanted to clear the balance. Was told £173. Paid in then straight off.

 

Then got statement saying he owed £3.78 !! Then got letter saying Pay up or goes to debt collector . I looked at statement and it says interst £3.78. but we thought it was interest free.

 

Is this because we paid up early?

 

I know its only £3.78 which he has since paid buti was just interested?

 

Any input as always, would be greatly recieved .

 

Mrs W:cool:

[Conniff]

Have you asked them what the interest is for? that would be your first call.

[BSC]

It may be an early settlement fee, not interest. This would be in the Ts&Cs if it applies and you should have been made aware of it prior to signing the agreement.

[MRSWESTHAM]

Hi Guys

 

It says interest on it , we didnt think to ask about early settlement but you would of thought they would of put early settlement fees on it ?!

 

Im not a fuss pot really just curious

[BSC]

Early settlement fees are common. Esentially it's an admin fee to process the closure of the account.

 

It should not show as interest though. Write to them and ask for an explanation of the charge.

[Bookworm]

No, Argos doesn't do early settlement fees.

 

Did you have other purchases on the card? They pay the balance in a certain order, and if you didn't specify which purchase the money was to go towards, it could have been used to pay off another one of the purchases and then the BNPL would expire and interest accrue, if that makes sense. They keep on doing it to me and I have to phone them and tell them to redistribute it the right way. As I pay by S/O, their system doesn't have a ref number so you can direct the payment where you want it to go...

 

Phone them and complain.