CreditCards Blog

Some time ago I entered into an interest free credit agreement where I paid a deposit for the goods and if I paid the balance with 9 months no interest charges would be incurred - I recently sent a cheque off to cover the balance as per my invoice only to get a letter back stating that there was an excess charge of 1.6% of the balance paid outstanding as payment was not made by direct debit.

On phoning the finance company they did point out in the agreement a line that states payments not made by DD would incur and 1.6% charge - they also told me that they would not set up a DD until the interest free period had lasped - so in essence you would either pay interest or the 1.6% charge!!!!!

The store using the finance company have parted way due to this while the finance company have a dedicated email for this complaint!!!!

Your warned to read the small print but can this be fair?:confused:

If it is in the paperwork you have I don't think you can complain - unless this information was not made clear at the time of purchase (where you could have made an informed decision whether to carry on or not).
IMO pay up unless you want your credit file tarnished.
Sorry can't offer any other advice unless you write and complain to see if they will back down.
Try Trading standards as well.

Thanks for your comments -

When I bought the goods no reference was made to this charge at all and the shop has now parted company with the finance company due to this, as they were unhappy about it when they were finially told.

It wouldn't have been so bad as you say if you were told at the point of sale that paying the balance in the interest free period will incur a "processing charge" or you can choose to pay interest.