Heba Elsherif  |  April 24, 2018

Category: Consumer News

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Closeup of VISA, Mastercard and Union pay credit cards.Some retailers are being investigated in a recent no interest credit cards class action lawsuit investigation for allegedly charging customers unexpected lump-sum interest charges on a “zero-interest” store brand credit card.

If you were deceptively charged interest on a zero-interest store credit card, you may be eligible to join in this class action lawsuit investigation.

As more consumers allege problems with no interest credit cards that ultimately charge high interest rates, some of the retailers being investigated include:

  • Apple
  • Disney
  • Cabela’s
  • Dressbarn
  • Forest River
  • Furniture Row
  • Helzberg Diamonds
  • The Home Depot
  • Kay Jewelers
  • Kohl’s
  • Lord & Taylor
  • Menards
  • Mor Furniture for Less
  • Zales
  • Sony/Playstation
  • Sears
  • Saks Fifth Avenue
  • Lowe’s Home Improvement
  • Raymour & Flanigan: Furniture & Mattresses

No Interest Credit Cards

Zero-percent interest store credit cards are commonly offered by retailers and it is a common practice of them to offer them. As a result, it can be a little hard to resist the temptation of signing up for these credit cards or store debit cards. This is especially the case when going in to make a big purchase on some items.

However, the benefits of owning one of these cards land in the hands of the retailer more than for the customer. There are, in fact, huge interest charges that become associated with “0% interest” promotions being offered by retailers.

Although there may be a “0% interest” promotion offered with the card, there often comes with it hundreds of dollars in finance charges, customers find. Credit cards and debit cards offered by retailers often come with something called deferred interest.

This simply means that for these deals, no interest is charged if the amount is paid in full. These gimmicks are often found in retailers that sell heavy and “big-ticket items” such as appliances and furniture, credit card experts say.

With a deferred interest plan, interest does not disappear until the initial purchase amount is paid off by the time the period ends. If the consumer does not pay off the full purchase price during the promotional period, they will owe full interest on a balance that remains from the date the item was purchased.

As such, when an item is purchased, deferred interest begins to accrue on top of the no interest credit cards. It is only six to eighteen months later, however, that a customer would be required to pay this amount.

Store credit cards often charge interest as high as 30 percent, and additional finance charges may be added if a customer makes a payment late or does not pay the credit card minimum balance in time. It is often the case, and unfortunately so, that buyers of credit cards are unaware of these fees and charges made on top of no interest credit cards. This is so because customers are not expected to be charged interest rates on a credit card marketed to have no interest.

You may be eligible for compensation and join in the no interest credit cards class action investigation by having been faced with high interest charges on a 0% interest store-branded credit card. No interest credit cards like these have been described as “traps for the unwary” due to the confusing nature of their terms.

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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