Brigette Honaker  |  July 11, 2018

Category: Consumer News

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Best Buy faces a class action lawsuit from a customer alleging that the electronics store’s financing programs are deceptively marketed as having “0% interest,” when interest is only deferred.

Plaintiff Deanna Dornaus recently filed the class action lawsuit against Best Buy Co. Inc. alleging that the company tricks consumers into applying for “no interest” financing option when the program is actually a deferred interest offer.

No interest financing offers can be extremely attractive to consumers, especially when making large purchases. These offers are advertised as accruing no interest for the promotional period, often 12 or 18 months.

However, Dornaus claims that offers at stores like Best Buy may be deceptive, offering deferred interest instead of zero interest.

“Best Buy tricks consumers into applying for, accepting, and utilizing what is, in reality, deferred-interest financing that is confusing, misleading, and deceptive, and that ultimately results in the consumer being subjected to the punitive imposition of significant and previously undisclosed retroactive interest charges,” Dornaus claims in her Best Buy class action.

The Best Buy class action states that with Best Buy’s zero interest financing programs, interest can be charged retroactively to the entire original balance if the balance is not paid off at the end of the promotional period. Surprising consumers with retroactive interest can be shocking and a large financial burden.

If a consumer cannot immediately pay the interest charge as well as the remaining balance, they will be forced to pay additional interest charges until the whole account is paid off, according to the Best Buy “0% interest” class action lawsuit.

This exact situation allegedly happened to Dornaus in March 2015 when she made a $1,515 “0% interest” purchase. At the end of her 18 months promotional period, she had a small remaining balance and was shocked when she was charged $609 in retroactive interest.

Dornaus claims that Best Buy’s practice of advertising their deferred interest plans as having “0% interest” is deceptive and unlawful. Reasonable consumers allegedly rely on advertisements to understand financing offers and are rarely prepared for a retroactive interest charge after the promotional period is over.

“In reliance on Best Buy’s deceptive misrepresentations or omissions, including the fact that Best Buy omits or disguises the true terms of its so-called ‘0% interest’ or ‘no interest’ promotions, consumers are convinced to make purchases they otherwise would not make had they known the truth,” the Best Buy class action lawsuit argues.

Dornaus seeks to represent a Class of California consumers who made purchases at Best Buy using store-issued credit and were later charged retroactive lump-sum interest on an amount greater than was advertised.

The Best Buy class action seeks restitution, disgorgement, actual damages, punitive damages, exemplary damages, court costs, and attorneys’ fees.

Plaintiffs are represented by Jeffery Kaliel and Sophia Goren Gold of Kaliel PLLC; Melissa S. Weiner and Christopher J. Moreland of Halunen Law; Jeff Ostrow and Scott Edelsberg of Kopelowitz Ostrow Ferguson Weiselberg Gilbert.

The Best Buy 0% Interest Class Action Lawsuit is Dornaus v. Best Buy Co. Inc., Case No. 1:18-cv-04085-RMI, in the U.S. District Court for the Northern District of California.

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215 thoughts onBest Buy Class Action Lawsuit Says ‘0% Interest’ Offer Is Deceptive

  1. Banerta says:

    Best Buy billing practices are a scam! They do not apply any payments toward the promotional balances, even when you pay more than the minimum. There is no way to pay down the balances and then they throw the extra interest on at the end of the promotion. If this is not illegal, it certainly should be. There has to be a way for the consumer to pay down their balance if they are making regular payments and more!

  2. Marci M. says:

    Something needs to be done about Best Buy’s “No Interest” contract conditions. They are absolute crooks and they know they are able to easily take advantage of customers via this offer. I was hit with $1800 EXTRA in retroactive interest fees in July 2023. An absolutely absurd and pointless setback.

  3. Alba Aponte says:

    I am having the same problem with Best Buy. I payed them the promotional balance a couple of moths before it expired and they still charged it and don’t want to fix it.

  4. Nate hostutler says:

    Definitely need to be invoked these guys are crooks in the worst way taking advantage in the worst way.

  5. Barbara W. says:

    I want to be a part of this!

  6. Xiaohan Yang says:

    Please include me, I called best buy today, and they just hung up on me. So deceptive and I’m trapped. I made a 700 purchase, and they charged me 170 on interest.

  7. Praveen says:

    How can i be part of this, i am trapped as well best buy credit card is totally deceptive

  8. ahmad umair says:

    please include me

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