Yea, they have an interest free period of 6 months, after which you either pay the balance (which is normally the purchase price less the 6/36ths you have paid) or else you are automatically into paying the balance over the remaining 30 mnths at the 29.9%.
What rip-off? Aren't the terms and conditions of such agreements explained in detail on the form or accompanying documentation? Whether people bother to actually read this is another matter.1. The people who understand the rip-off
Not necessarily. Chances are they would need to get a new card with one of these interest free offer period and pay €40 government stamp duty for the privilege. In contrast a 6-12 month interest free period on a loan agreement is better value once the loan is cleared before any interest (e.g. at c. 30%) kicks in.Hi Demoivre,
Even if there is an interst free period, for a purchaser under those conditions it would be cheaper to put it on a visa card (with a 6/9 month interest free period).
Why is this unlikely?My bug bear about these "loans" is that it would be unlikely that a purchaser will over a year have the loan paid off
So what? That's their own problem surely? Certainly not a reason in itself for even further/tighter regulation of the credit market impacting everybody else and not just those who can't/won't manage their finances prudently if that's the insinuation?and some people can be tempted to take this year as a "breather" for paying the loan.. very often these people are not well paid and find themselves being hit by higher interest rates as a result....
there was a loan application beside the till.
I also noted the occupation of the applicatant - a machine operator.
What rip-off? Aren't the terms and conditions of such agreements explained in detail on the form or accompanying documentation? Whether people bother to actually read this is another matter.
Whether we are told about it or not 20+% interest is a rip-off and only designed to catch people out and nail them.
These shops will do anything to get you to give them details for credit rating checks and possible credit for a purchase. I have had assistants say 'sure it won't hurt to try for the credit, all it takes is a few details. if you get accepted then you can decide if you want to pay up front or not...'
I can see why people get caught out. They make it seem like 'everyone is using this credit, it's great' and the 'jones' factor' kicks in
Whether we are told about it or not 20+% interest is a rip-off and only designed to catch people out and nail them.
I would actually agree with Clubman on this one.
I disagree that this is a rip-off unless the rate charged is not divulged or differs from that mentioned (both illegal).Whether we are told about it or not 20+% interest is a rip-off and only designed to catch people out and nail them.
And a consumer can do one single, simple thing to avoid this - say "no".These shops will do anything to get you to give them details for credit rating checks and possible credit for a purchase. I have had assistants say 'sure it won't hurt to try for the credit, all it takes is a few details. if you get accepted then you can decide if you want to pay up front or not...'
Then some people are just gullible?I can see why people get caught out. They make it seem like 'everyone is using this credit, it's great' and the 'jones' factor' kicks in
Then some people are just gullible?
It's the consumer's own fault if the information is there and they fail to read it. How many times have we read on AAM about people who did just this and the some time down the road had a problem with some financial product where they admitted that they failed to bother reading what they signed at the outset?On the rip off debate, its hard to call because like clubman said the facts are there to be read so people just choose to ignore them or are just gullible
How aggressive in practice? I can't imagine many situations in which a "no" or "please go away" would not deal with such a problem.but there are aggresive sales people who will push people into making very quick binding decisions
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