Courts, Comet, Powerhouse, Time Computers and Dabs.com were all
advertising “interest free” credit or “0% APR” or “interest free
option/choice” deals for their products. In fact, interest was
payable from the date of the agreement if a lump sum was not paid
off in full by the end of the interest free period.
The OFT takes the view that such adverts break the Consumer
Credit (Advertisements) Regulations of 1989, which ban any advert
that states or implies the consumer can get interest-free credit
where in fact he would be liable for consumer charges.
Under the Stop Now Regulations the OFT is required to consult
with companies or traders it believes to be in breach or
threatening to breach a number of laws harming the collective
interests of consumers covered by those laws before taking court
action. It can seek written assurances in lieu of court action.
The OFT has already secured similar agreements from seven other
major retailers in the past year and said it will continue to press
companies to comply with the law.
