ARGOS has reduced its credit facilities in the run-up to Christmas – leaving customers worried about whether they will be able to afford their presents.
The retailer offered buy-now-pay-later (BNPL) plans of three, six or 12 months.
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Argos has quietly axed the popular payment option ahead of ChristmasCredit: Getty
But over the summer, Argos quietly deleted the six-month option.
Customers can now choose BNPL plans for up to three months when they spend more than £50 or 12 months if they spend more than £199 on any product.
Customers slammed the company for removing the six-month interest-free option, which was previously available if more than £99 was spent.
One said on Xu, formerly known as Twitter: “Any idea when the 6 month BNPL plan will be available again on the Argos card?
“I can’t do my Christmas shopping at Argos without it.”
Another added: “Why did you end the six month plan? I used that a lot.”
On Facebook, a user told the Argos Complaints Group: “They have changed the Argos card plans several times over the past few months.
“It’s terrible that they got rid of the six-month option.”
Under the new options, customers buying a £99 Fitbit or a £149.99 Amazon Fire Tablet should be sure to return it within 90 days – rather than taking the longer six-month option.
If they fail to pay on time, they will be charged a high interest rate of 34.9% on the outstanding amount, retroactive to the time of purchase.
If they wanted to have 12 months to repay the amount, they could get it by buying more from Argos to get over the £199 threshold, but that would increase their debt.
Consumer champion James Daley, of the Fairer Finance campaign website, said: “Although Argos payment plans are presented as buy-now-pay-later schemes, they are actually much more like ordinary credit plans – with serious consequences for failure to pay.
“The removal of the six-month option will be a severe blow to many shoppers as they plan how to pay for the extra cost of Christmas at a time when the cost of living crisis is still looming large.
“It is true that interest rates are higher than they have been, but it would be nice to see Argos offering more flexibility for its customers, not less in this climate.
“Even if they have to charge a small amount for the six-month option, it’s clear that’s something their customers value and would use.”
The Argos card is a “revolving credit” store card, which means that after checking affordability, customers receive a unique credit limit for purchasing goods at Argos and do not have to reapply for each new purchase.
This limit is regularly reviewed and may be increased or decreased.
When they go to buy something from Argos, they can choose normal credit, giving them up to 56 days to pay, or longer Buy Now Pay Later plans may be available. But they are not guaranteed.
An Argos spokesman said: “We regularly review the offers on our Argos cards and the credit terms we offer to meet the needs of our customers.
“Our latest offer is a buy now pay later plan for any product worth over £199 with a 12-month payment term, giving our customers the option of longer-term payments.
“Our customers appreciate the Argos card because it gives them the ability to buy items and avoid paying interest, provided they cover the full amount within the agreed time frame.
“A large majority of our clients repay their BNPL plans within the term and do not pay interest.
“We’re seeing customers take advantage of more than one plan to better manage their payments.”
The conditions and the interest rate were clarified, as well as the way in which cardholders can avoid paying interest, they said.
StepChange’s director of external affairs, Richard Lane, said: “Consumers need to ensure that any loan they take out, whether it’s from BNPL or someone else, is affordable and they will be in a position to meet repayments within the allocated amount . timeframe.
“For someone struggling with debt from using BNPL or any other type of credit, independent and confidential support is available from free debt advice charities such as StepChange.”
In comparison, Argos’ competitor Very.co.uk offers customers the chance to split payments over three months interest-free, or spend £50 and defer payments for up to six months, or spend £300 and defer payments for 12 months.
John Lewis offers interest-free payment plans on selected items costing £200 or more, with duration depending on the product.
For example, an order of £1,000 can be split into monthly payments of £83.33 over a year.
Last December, money guru Martin Lewis issued a warning about credit card debt in the run-up to Christmas and revealed the rules to follow.
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