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But now pay later ...

(7 Posts)
Lizzle10 Wed 08-Jan-20 09:59:58

So angry with myself ... last year my washing machine broke a week outside the guarantee I rang the manufacturer giving the fault code displayed on the control panel and they advised me it would be cheaper to replace than repair . Just around that time I had a random email from Very , I’d never used them but they offered a buy now pay later option . They had the washing machine I wanted at the same price as John Lewis and I could defer payments interest free for a year . Great deal I thought - ordered machine happy days ! Forward nearly a year (now stupidly and I know it’s my own fault I didn’t read the small print ) I decided to pay £150 off the balance of nearly £500 thinking with money being a bit tight atm I could incur a little interest on the balance and pay it in the new year . Had my statement come through yesterday with a whopping £200 interest added . I rang them to query to be told that even though I’d paid off £150 I was still charged the full interest on the whole amount as I hadn’t cleared the full balance . I stupidly thought I’d be charged interest on what was left not a whole years interest on the full amount ! Customer services weren’t helpful basically said it was tough luck it’s the T&Cs which I know it is . Fuming with myself !!!

Oldwoman70 Wed 08-Jan-20 10:06:50

Don't be too hard on yourself, unfortunately a lot of people have been caught out in the same way. Whilst it may be "in the T&Cs" it is usually in the very small print in the middle of a lot of other very small print. The fact that interest has to be paid on the full amount if any remains unpaid at the end of the repayment period should be written in large print.

Barmeyoldbat Wed 08-Jan-20 10:07:03

Oh dear so sorry what can I say. My advice to anyone is never ever buy anything on buy now pay later, its usually a 100% interest or more.

My daughter, with the learning disability, was always doing it before I got POA for finances and believe I know what the
b.....ds are like.

So sorry there is not much you can do but learn from it. Can you just pay the full lot now or even get a bank load, might be cheaper and pay it.

Thought for the future, a credit card might be better, even with an interest of 18% its cheaper than pay as you go. All the best.

Hetty58 Wed 15-Jan-20 23:22:35

With Very 'buy now, pay later' it's clearly stated that interest is charged in full if the balance is not paid on time. It isn't hidden in the small print. Lizzle either didn't read or didn't fully understand the compound interest charged.

That £500 could have been paid at about £40 a month !

Doodledog Wed 15-Jan-20 23:33:48

Lizzle has made it clear that she accepts responsibility and knows that she made a mistake.

I do feel that such high rates of interest are a disgrace, and should be looked at by the government. A £200 charge on a £500 item is ridiculous - it really is money for nothing for Very. I know that companies need to cover the risk involved in lending money to high risk groups (not suggesting that this applies to the OP, obviously); but there should be more regulation of the amounts of interest allowed, and maybe a traffic light system on the agreement documents, so that people can see at a glance whether companies are reasonable in their charges or not.

Hetty58 Wed 15-Jan-20 23:54:25

That's true Doodledog and I agree that interest rates should be regulated. The highest rates are paid by those who can least afford them. I can't see our present government doing anything about it!

oldgimmer1 Thu 16-Jan-20 05:16:27

Caveat Emptor (I think) grin.

All establishments are now required to clearly state their interest rates now.