While we are all happily shopping on and off line, I just wanted to share a recent experience with the "BillMeLater" credit service. We are accustom to this being a payment deferral (typically 6 months) that represents another discount on the purchase of an item. When this popped up as a choice for a office computer purchase, I just clicked it and assumed I would not have to pay for six months and could avoid any interest charges, as I have in the past. After getting my first late warning less than 30 days after the purchase, I called to find both a $25 late payment charge and that I was being charged interest at the rate of 19.99%.
After calling "Customer Service", "Amy A" explained that the 6 month promotion is only if it says "Same as Cash" or "6 Months Deferred Interest" on the offer from the company, and that if it just says "BillMeLater", it is just like any other credit card and the first payment is due on the first billing cycle.
I opined that a this seemed misleading and she promptly credited back the $25 charge as a "one time courtesy."
Welcome to the new Financial Regulation bill and credit reform! Caveat emptor!
-JOHN
If you would like John or Rosemarie Boyd to speak to your group or organization on financial planning or investment strategies contact Rosemarie at rboyd@boydstrategy.com or call her at 508-754-3226. The comments on this blog do not represent individual Investment, Tax or Legal Advice, and do not represent an offer to buy or sell any security. Consult the appropriate professional before acting on any idea seen here.
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