0% Interest Store Credit Cards: Too Good to Be True?

More and more stores are offering their customers the option of signing up for store credit cards, which are often promoted as having 0% interest. However, customers who sign up for store credit cards during a so-called 0% interest promotion may end up finding themselves charged with interest fees they didn’t expect.

If you signed up for one of these store credit cards during a 0% interest promotion and were later charged an interest fee, you may be able to participate in a class action lawsuit investigation regarding deceptive fees or interest charges.

Basics of Store Credit Cards

In this day and age, it’s not unusual at all for retailers to offer customers store credit cards. Signing up for these store credit cards can seem like a no-brainer, especially when they’re advertised as having 0% interest and you’re looking to make a large purchase.

However, consumer advocates are concerned that store credit cards may be advertised in ways that misrepresent them as much more advantageous for customers than they actually are. Store credit cards may benefit the retailers significantly more than they benefit customers.

In fact, customers may even be left with huge interest charges, even if they were promised 0% interest. Some customers have found themselves unexpectedly owing hundreds of dollars in finance charges. So how can this happen?

“Deferred interest programs are a popular choice for consumers who need to purchase expensive items like refrigerators and dishwashers but don’t have the money or savings,” according to Nessa Feddis from the American Bankers Association, speaking to CNBC. “They allow them to make the purchase when they need to and spread the payments over time without having to pay any interest.”

While most customers using store credit cards manage to repay their loan within the interest period, those who fail to repay within this period may end up facing significant interest charges.

Promotions for store credit cards often include phrasing like “No interest if paid in full.” This refers to something called deferred interest—a kind of interest that starts adding up at point of purchase, but doesn’t actually hit the customer until the end of the advertised promotional period (typically six to 18 months later).

If a customer has fully paid off the credit card in this time period, the interest is dismissed. But if the customer has not paid off the card, or if a payment is late, they will end up facing interest fees that have accumulated in the duration of the promotional period as well, which can amount to hundreds of extra dollars in charges. In some cases, customers may be facing interest rates as high as 30 percent on these “0% interest” store credit cards.

Store Credit Cards Lawsuit Investigation

Some of the major retailers involved in the investigation for 0% interest store credit cards deceptive practices include Apple, Cabela’s, Disney, Dressbarn, Sears, and more.

If you signed up for one of these kinds of store credit cards during a 0% interest promotion but have since been charged an interest fee, you may be able to join a class action lawsuit investigation.

Join a Free Zero Percent Store Credit Cards Class Action Lawsuit Investigation

If you were unexpectedly faced with high interest charges on a store credit card even though you made the purchase on a 0% interest store branded credit card, you may be entitled to compensation.

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