Brendan Burgess
Founder
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Dixons
If you buy something on HP through Dixons, you have a choice.
An ordinary HP agreement has an APR of 19.8%.
The other HP agreement has an APR of 29.8%, but if the customer pays it off before the end of the year, there is no interest charged.
The repayments on the "interest-free" loan are paid by standing order, as distinct from direct debit. They notify you three weeks before the end of the year what amount is due. If this is paid on time, no interest is charged. But if you miss the payment date, it stays as a 29.8% HP agreement.
For example, for a purchase of €600, you will pay €23.52 per month for 48 months.
After 11 months, you will have paid off €258.72. If you pay the balance of €341.28 before the end of the year, you will have paid no interest.
ESB
The ESB charges 22.9% on most items. If it charged 23%, it would be obliged to get a money lender's license.
On selected items, there appear to be genuine interest free loans for up to one year.
If you buy something on HP through Dixons, you have a choice.
An ordinary HP agreement has an APR of 19.8%.
The other HP agreement has an APR of 29.8%, but if the customer pays it off before the end of the year, there is no interest charged.
The repayments on the "interest-free" loan are paid by standing order, as distinct from direct debit. They notify you three weeks before the end of the year what amount is due. If this is paid on time, no interest is charged. But if you miss the payment date, it stays as a 29.8% HP agreement.
For example, for a purchase of €600, you will pay €23.52 per month for 48 months.
After 11 months, you will have paid off €258.72. If you pay the balance of €341.28 before the end of the year, you will have paid no interest.
ESB
The ESB charges 22.9% on most items. If it charged 23%, it would be obliged to get a money lender's license.
On selected items, there appear to be genuine interest free loans for up to one year.