Buy now, argue later... my TV drama at Currys
M.D. writes: On January 2, I purchased two televisions from Currys PC World at the Trafford Centre in Manchester. This was an interest-free buy now pay later plan – with the full £359 cost payable by July, by which time I am due a work bonus of £400. But I was surprised to get an email from credit firm Creation later in January, saying my first direct debit was due on February 2. Creation claims the interest-free plan was cancelled in the store on January 12 and a 24-month Creation plan was substituted, including interest charges. I have not been in the store since January 2 and Currys say it cannot cancel the Creation plan even though I have never authorised it. YOU gave me a copy of the deal you agreed with Currys on January 2. It clearly says you have until July 2 to pay for the TV sets.
It explains: ‘If you pay £359 by this date you won’t be charged any interest. If you choose to, you can make monthly payments after this date, which would be £19.73 per month starting on August 2.’ This would include interest at 19.9 per cent.
Confusingly though, the same document says you have been accepted by credit firm Creation, with a spending limit of £5,000.
This would allow you to carry on shopping, but of course there would be interest to pay on anything not covered by the buy now pay later offer. Currys gave Creation your personal details, including for your bank, which is why the credit firm was able to draw cash from your account.
You also gave me a statement you received from Currys, dated January 12. It shows that on that date the £359 you owed was transferred from the buy now pay later interestfree deal.
Instead the same amount became part of your interest-bearing £5,000 credit line with Creation. When you complained to Currys the store was unable to produce anything to show you had cancelled the interest-free agreement. Yet the company says the store manager denied this agreement existed and claimed it had always been a credit sale with interest. Currys tried to paper over the cracks by offering you £110, covering roughly the first six months of payments to Creation. You turned this down, understandably objecting to being forced into a loan agreement you never signed.
I asked both Currys and Creation to let me see anything you signed, cancelling the initial interest-free deal and switching to an interestbearing loan. Neither could produce any such evidence. Currys said simply: ‘We are unable to provide this information.’
Creation did send me a copy of what it said was your credit agreement, but every figure had been blacked out. So had your name, address, phone number, bank details and signature. It might just as well have been Mickey Mouse borrowing £1million for all it proved.
So, here is what seems to have happened. Creation now says it was wrong to tell you that the original buy now pay later agreement had been cancelled. It now says it has never even seen the original agreement. It believes Currys tried to send the original agreement, but it was never received.
When Currys sent it again, it failed to tell Creation you had opted for the interest-free six months.
Currys says: ‘This was caused by an internal error and we apologise for the inconvenience this has caused. We have now cancelled the contract completely, confirming no future charges to Mr D.’
That is right – the slate has been wiped clean, the TV sets are yours, the payments already collected are being refunded to you, and you have nothing at all to pay now, in July, or ever. A good result.