Argos - Buy Now Pay Later

godtabh · 18-05-2021 11:36am #1

An elderly relative was on to my mam saying they got a great deal in Argos on a big ticket item.

The item is very expensive and not something my mam expected this person to buy (a large/fancy tv).

They said they bought it on Argos buy now pay later. I cant see anything about this online.

Tried ringing Argos but they didnt seem to know how Ireland worked and refereed me to the Argos Card in the UK.

We are worried that they may have been scammed. We haven't seen relative in person in a while (different counties/covid) and we are just worried.

L1011 · 18-05-2021 11:42am

Its very easy to find on their website?

Its hire purchase with a usurious interest rate unless paid off in full within 6 months

https://www.argos.ie/static/StaticDisplay/includeName/BuyNowPayLater.htm&mvt=ar:roi:customer-serv_4

godtabh · 18-05-2021 12:25pm

L1011 wrote: »

Its very easy to find on their website?

Its hire purchase with a usurious interest rate unless paid off in full within 6 months

https://www.argos.ie/static/StaticDisplay/includeName/BuyNowPayLater.htm&mvt=ar:roi:customer-serv_4

I saw that page but thought it was a cached page

Darc19 · 18-05-2021 9:28pm

Avoid at all costs unless you are 100% certain that you can pay it off BEFORE the six months are up.

It is an absolute racket.

If you don't pay off the FULL interest from day one is applied until 54 months later.

(6 months + 48 monthly payments)

If you pay off on the first day of the 7th month, they will STILL charge you full interest for the 54 month term.

This is how these credit companies make their enormous profits.

Eg, a €250 item.
Pay middle of month 6 = €250

Pay 1st day of month 7 = €440

And they will not negotiate.

Miss a payment, that's another €30 thanks.

Just avoid them.

godtabh · 19-05-2021 8:49am

That’s a different racket. We are worried that this relative has been taken advantage of

Doodah7 · 19-05-2021 9:46am

godtabh wrote: »

That’s a different racket. We are worried that this relative has been taken advantage of

But Argos don't upsell or really have salespersons in the normal sense?? They are just there to process reservations or purchases.

Hard to see how they were persuaded to buy a more expensive item than they wanted or indeed if they had no original intention of buying at all?

Nigzcurran · 19-05-2021 10:42am

I don’t think Argos even authorise credit immediately so your relative would had to have applied for credit and then return a second time?

Xterminator · 19-05-2021 11:12am

so an interest free loan is a racket?

i agree that most buy now pay later companies charge far more than a credit union or bank loan in their APR. But a canny customer can use the interest free period to their own advantage! pay it off and not have to pay a penny interest

The argos interest payments are clearly flagged, the apr is high, but not a rip off 22.99% and nothing is hidden or underhand? with argos there is no hard sell either- in my experience.

whippet · 19-05-2021 11:17am

Xterminator wrote: »

so an interest free loan is a racket?

i agree that most buy now pay later companies charge far more than a credit union or bank loan in their APR. But a canny customer can use the interest free period to their own advantage! pay it off and not have to pay a penny interest

The argos interest payments are clearly flagged, the apr is high, but not a rip off 22.99% and nothing is hidden or underhand? with argos there is no hard sell either- in my experience.

It borders on a racket.

A good few years back when we bought a house and cashflow was tight we did one of these deals with a furniture place. We knew we would have the cash to pay the balance in full before the interest rate kicked in.

It was a tricky process to actually pay off the balance in time - almost as if the finance company wanted us to miss the cut off date.

I can't remember the details of it - but we needed to get a balancing statement with a reference to pay the full amount - requesting this balancing statement took about two weeks and it arrived 48 hours before the payment was due. I had to drive to their offices and make sure they signed a note that I made to prove that the payment was made before the cut off.

Run a mile !!! you are better off saving the cash and buying the item when you have the money

Sebastian Dangerfield · 19-05-2021 11:20am

I used this for a laptop a couple of years ago. I needed the laptop quickly and had a bonus due in about 4 months, so decided to hold onto my cash and pay it out of the bonus.

There was no hard sell. In fact I had to go back a second time, only a manager could put it through and there wasn't one onsite when I called in at lunchtime.

It was approved in about 10 minutes instore. I got access to an online account to make payments, which I chipped away at in months 1-3. I paid it off simply in month 4, interest free as advertised.

I would echo the comments that it is best used if the intention is to pay within the 6 months, but it worked fine for me.

Xterminator · 19-05-2021 11:23am

whippet wrote: »

you are better off saving the cash and buying the item when you have the money

well it is always wiser to do that. But not everyone has the cash handy, but if the TV breaks theu may need to replace sooner rather than later.

In this case the OPs relative can pay in full within 6 months and not pay a penny interest.

if they don't have the cash, they can pop into their credit union in their own good time and borrow the money, clear the argos loan on time and pay the lower APR.

And there was no hard sell of the financial product, as anyone who has ever shopped in argos can tell.

So whats the racket?

Dav010 · 19-05-2021 1:35pm

whippet wrote: »

It borders on a racket.

A good few years back when we bought a house and cashflow was tight we did one of these deals with a furniture place. We knew we would have the cash to pay the balance in full before the interest rate kicked in.

It was a tricky process to actually pay off the balance in time - almost as if the finance company wanted us to miss the cut off date.

I can't remember the details of it - but we needed to get a balancing statement with a reference to pay the full amount - requesting this balancing statement took about two weeks and it arrived 48 hours before the payment was due. I had to drive to their offices and make sure they signed a note that I made to prove that the payment was made before the cut off.

Run a mile !!! you are better off saving the cash and buying the item when you have the money

How is it bordering on a racket? You had a pay off finance before a certain date to avoid interest, which you did. Are we missing something?

whippet · 19-05-2021 2:33pm

Dav010 wrote: »

How is it bordering on a racket? You had a pay off finance before a certain date to avoid interest, which you did. Are we missing something?

I was talking about how difficult it was to actually pay it off on time - grant it - my experience was from 15 years ago

jimmycrackcorm · 19-05-2021 2:54pm

whippet wrote: »

I was talking about how difficult it was to actually pay it off on time - grant it - my experience was from 15 years ago

I don't think you are referring specifically to Argos.
I've used the Argos deal before because I considered the money was better in my pocket for six months than theirs and I simply paid the outstanding amount less the deposit in month 6.

Bojill · 20-05-2021 1:58pm

I've used the finance company that this is referring to.
It's so easy to pay off partial amounts or the full balance at any time.

Argos - Buy Now Pay Later

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