The "No
Interest, No Payments" Scam
When you think of
scams, you think of criminals in hiding inventing ways to
trick people out of their money. But what about the legal
scams that are perpetrated against consumers by corporate
America?
Here is another
corporate scam that is very deceptive and leaves many
consumers buried in debt from unexpected interest
charges.
"No Interest, No
Payments Until 2011!!!" It sounds like you don't have to start
making payments until 2011. It also sounds like interest will
not begin to accrue until 2011.
But that's not how
the scam works. The consumer is expected to start making
payments right away and the debt has to be paid in full
before 2012 (this is hidden in the fine print).
Otherwise, the consumer is forced to pay a mountain of
unexpected interest charges.
Let's say that in
2009, you purchase a large screen TV for $1999. You finance it
on a "no interest, no payments until 2011" plan. One of two
things can happen:
1) You expect to
start paying for the TV in 2011. When 2011 arrives, you find
out that you have to pay back interest from 2009 and 2010 (in
addition to the interest and principal for 2011).
2) You start making
payments in 2009. When 2011 arrives, you have paid $1800 on
the TV. You should only owe $199, but that's not how the scam
works. You will also be charged back interest on the full
amount for 2009 and 2010.
To make matters
worse, the interest rate charged in these scams can be as high
as 45%!!
Beware of the "No
Interest, No Payments" scam. Also, look out for these other
legalized corporate scams:
