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Is this legal?

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Anonymous
Not applicable

Re: Is this legal?


@pipeguy wrote:

@nyancat wrote:

I consider it extremely unethical, and it SHOULD be illegal. But, sadly, it isn't. GE is the worst offender with this practice.


I disagree (not that it matters)....

 

Why is it unethical or should be illegal? I consider it a very nice perk 0% financing over 6-12 months. I mean just understand the terms of the agreement and schedule to pay the full balance 1 month early say on month 5 for a 6 month deal or month 11 for a 12 month deal. If you miss the deadline, who's fault is that? the lender that gave you free financing? 


I agree that it should be illegal. People probably don't realize they will be charged back interest on these plans. People should know what they're getting, so I don't think lenders should be allowed to call this financing 0%.

Message 11 of 31
Anonymous
Not applicable

Re: Is this legal?


@Anonymous wrote:

@pipeguy wrote:

@nyancat wrote:

I consider it extremely unethical, and it SHOULD be illegal. But, sadly, it isn't. GE is the worst offender with this practice.


I disagree (not that it matters)....

 

Why is it unethical or should be illegal? I consider it a very nice perk 0% financing over 6-12 months. I mean just understand the terms of the agreement and schedule to pay the full balance 1 month early say on month 5 for a 6 month deal or month 11 for a 12 month deal. If you miss the deadline, who's fault is that? the lender that gave you free financing? 


I agree that it should be illegal. People probably don't realize they will be charged back interest on these plans. People should know what they're getting, so I don't think lenders should be allowed to call this financing 0%.


The contract spells it out pretty clearly.

Message 12 of 31
Klesko
Regular Contributor

Re: Is this legal?

I got hit with this once on a BBY card many years ago. I had the min setup to auto pay and I noted which month the 0% would come off so I could pay the remainder off. Well apparently I wrote it down wrong, I was two months off. I got his with a massive deffered interest amount. I called but they refused to remove it. 

 

Lesson learned...

Penfed Visa 10k | Penfed PLOC 25k | Citi Hhonors 10k | Total Rewards Visa $25k | Alliant Visa $15k | Barclays Arrival + $13k | Barclays AAdvantage $5k | Barclays Apple $2.2k | CapOne QS WMC $26.5k | CapOne QS $5k | CapOne Plat $5k | Discover 8.5k | Allegacy Visa $6k | DCU Visa $7.5k | Best Buy Visa $11k | Lowes Store Card $30k | Walmart Store Card $10k | Amazon Store Card $25k
Message 13 of 31
longtimelurker
Epic Contributor

Re: Is this legal?

It's not so very different from the cc grace period.   If you don't PIF, you owe interest from the date of purchase on everything, not just from statement date on the amount you didn't pay

Message 14 of 31
Josh2942
Established Contributor

Re: Is this legal?

Its is and it is also fair because you know the terms before you apply and or use the finnacning. I have a BBY card and bought a 4k tv on it and paid it before the 24 months. Barclay does that with Apple. We make choices and have to deal with the consiquences if we cant follow through

Jaguar F-Type R Loan 50K Balance
Goldman Sachs Signature Loan $29,000 TU 750 score pulled at time of loan.
Student Loan Debt $1,500
Credit Card Debt $300 1>% of $166,700
FAKO Transunion 723 Equifax 744
What's in my wallet? Chase Sapphire Reserve, Chase Freedom Unlimited, and AMEX Blue for Business
Message 15 of 31
Josh2942
Established Contributor

Re: Is this legal?

agreed.

Jaguar F-Type R Loan 50K Balance
Goldman Sachs Signature Loan $29,000 TU 750 score pulled at time of loan.
Student Loan Debt $1,500
Credit Card Debt $300 1>% of $166,700
FAKO Transunion 723 Equifax 744
What's in my wallet? Chase Sapphire Reserve, Chase Freedom Unlimited, and AMEX Blue for Business
Message 16 of 31
Josh2942
Established Contributor

Re: Is this legal?

Thats why the terms are written in black and white. Because you choose not to read them it doesnt mean they are no there. It even says it on your statment every month how much the defered interest has accumilated.

Jaguar F-Type R Loan 50K Balance
Goldman Sachs Signature Loan $29,000 TU 750 score pulled at time of loan.
Student Loan Debt $1,500
Credit Card Debt $300 1>% of $166,700
FAKO Transunion 723 Equifax 744
What's in my wallet? Chase Sapphire Reserve, Chase Freedom Unlimited, and AMEX Blue for Business
Message 17 of 31
thom02099
Valued Contributor

Re: Is this legal?


@Anonymous wrote:

@Anonymous wrote:

@pipeguy wrote:

@nyancat wrote:

I consider it extremely unethical, and it SHOULD be illegal. But, sadly, it isn't. GE is the worst offender with this practice.


I disagree (not that it matters)....

 

Why is it unethical or should be illegal? I consider it a very nice perk 0% financing over 6-12 months. I mean just understand the terms of the agreement and schedule to pay the full balance 1 month early say on month 5 for a 6 month deal or month 11 for a 12 month deal. If you miss the deadline, who's fault is that? the lender that gave you free financing? 


I agree that it should be illegal. People probably don't realize they will be charged back interest on these plans. People should know what they're getting, so I don't think lenders should be allowed to call this financing 0%.


The contract spells it out pretty clearly.


Exactly. The contract is very specific.  We as consumers have the option to accept the terms....or not.  It's that simple.  WE have the obligation to read all the terms and conditions.  To not do so is negligent on our part.  If one doesn't agree with the terms, don't apply for the card.

Message 18 of 31
Anonymous
Not applicable

Re: Is this legal?

Ignorance to the law, or contract in this case, excuses no one. If you don't agree with the terms you don't have to use the card or sign the contract but the moment you do you're liable to whatever it states, not just whatever you read.

Message 19 of 31
longtimelurker
Epic Contributor

Re: Is this legal?


@Anonymous wrote:

Ignorance to the law, or contract in this case, excuses no one. If you don't agree with the terms you don't have to use the card or sign the contract but the moment you do you're liable to whatever it states, not just whatever you read.


Not quite true in general of course.  If the contract language violates some controlling law, those provisions aren't enforceable.   So if the CFPB had determined that this sort of interest was not legal (which they haven't!) you would not be liable.

Message 20 of 31
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