Since 2001, eleven companies, including Dixons, have agreed with
the OFT to end advertising campaigns described as misleading that
claimed "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 that a consumer can get interest-free credit
when in fact he would be liable for consumer charges.
Currys, part of the Dixons Stores Group, ran a campaign
breaching that agreement. Dixons said it was a marketing error. It
appears that other than naming-and-shaming, the OFT is taking no
further action.
