I have an issue with the current no deposit interest free offers currently being pushed onto the market.
The below offer from DSE is symptomatic of the kind of deceptive offers out there.
The company is advertising 24 months interest free with no deposit on purchases over $600. I believe this is being deceptive as:
* There is a $60 fee to establish the interest free account
* There is a monthly fee of $2.90 on the account
* There is a $60 annual fee 12 months after the account is created.
I would argue the $60 account establishment fee is no different to a deposit (yet increases the cost of the purchase), the $2.90 account fee is similar to interest.
All up a customer keeping the account for 23 months faces a total cost of $60 establishment fee, $60 annual fee, $66.60 in monthly account fees which totals to $186.70. For a $1,000 purchase this would equate to a cost of 9.7% annually.
I know one should never sign on the dotted line without understanding the full implications, and generally should avoid debt that is not self liquidating, but sometimes we do need to be protected from ourselves and I think these kinds of offers should be banned, or at least the actual costs better explained.