Consumers Cautioned About Deferred Interest Store Credit Cards

Even though deferred interest store credit cards such as the Sony Card may seem like a great deal, it can lead to expensive consequences.

About 1 in 5 customers who sign up for deals with deferred interest store credit cards, often on large items, can end up paying unexpected and excessive charges.

If a consumer successfully pays off the debt from these deferred interest deals during the allotted interest-free period, then the card can be a helpful method of payment.

However, for those who are unable to pay off the debt during this period or are late on even one payment, charges can shoot up after that no-interest period is over.

Deferred Interest Store Credit Cards

What many consumers don’t understand about these deferred interest store credit cards is that the interest doesn’t go away permanently; it’s a retroactive deal. The interest collects during the no-interest period and is suddenly charged after that period is over if a consumer hasn’t paid off the debt or made a late payment. Most no-interest periods are between 6 and 18 months long, so consumers have to be able to pay their debt in full by the end of these periods. Six to 18 months may seem like a long time away when making a purchase, but when making payments after a large purchase, time can fly by. Back interest from deferred interest store credit cards can add huge and unexpected costs for consumers. The average interest rate is 15 percent, but deferred interest rates can reach much higher. Buyers often neglect to check the interest rates when they make purchases, as they expect they will pay off their debt before this knowledge becomes necessary. Because of this, the months of high interest often comes as an unwelcome surprise for consumers. Stores may neglect to inform consumers about the high interest rates associated with their deferred interest credit card programs, leaving consumers unaware of the potential financial complications that may arise if they miss paying in full by the deadline. Deals for deferred interest store credit cards are extremely popular for consumers across the United States. In total, consumers reportedly spend over $150 billion each year using store cards. While not all of this is done through deferred interest deals, a large portion is. A majority of consumers succeed in paying off their deferred interest debts before the back interest is applied. Avoiding hefty prices from deferred interest deals is essential. When signing up for a deferred interest store debit cards, divide the amount you owe into how much you need to pay back each month in order to pay in full by the end of the interest-free period. Making these payments on time is extremely important. One missed payment can mean that the interest on the full amount will be due. If you or someone you know has been hit with high interest rates after failing to pay back any  deferred interest store credit cards from Sony or another store during the no-interest period, and you believe you were not adequately informed of these policies, you may be able to file a deferred interest class action lawsuit.

Join a Free Store Debit Card and Credit Card Fees Class Action Lawsuit Investigation

Did you participate in a 0% interest promotion on a store-branded credit card and were charged an interest fee? Were you unexpectedly charged a Returned Payment Fee on a store-branded debit card? You may be eligible to join this class action lawsuit investigation into allegedly deceptive store card fees.

Join the Investigation Now