P252 CEEFAX 252 Tue 5 Jun 21:11/29 1/5 ! "£ KNOW YOU5 CREDIT Buying a video on credit? Has the company supplied you with written details of the credit you have to pay? You must know how much you will have to pay on a credit agreement. Borrowing money costs money. When it comes to credit it pays to shop around. The Consumer Credit Act 1980 enables customers to ask for a written quotation of credit details. MoreP252 CEEFAX 252 Tue 5 Jun 21:21/15 2/5 ! "£ KNOW YOUR CREDIT This written quotation must include the total cost of credit expressed as an annual pjrcentagj rate. The latter includes interest on the loan and charges you pay as a condition of getting the loan, for example insurance and maintenance. The following chart shows the cost of buying a video in various stores. Ask for a written quotation for furthjt information. MoreP252 CEEFAX 252 Tue 5 Jun 21:15/03 3/5 ! "£ KNOW YOUR CREDIT MINIMUM TOTAL STORE COST DEPOSIT RIP'D APR £ £ £ Lewis's 399.95 39.95 471.95 19.7% Boots 399.95 39.95 486.35 23.8% Woolworth 399.95 40.95 493.29 25.9% Tjlifusion 409.95 40.95 518.79 29.5% Dixon's 399.99 40.99 521.95 34.25% Curry's 399.99 39.99 539.43 39.9% Banks * 400.00 --- 476.00 18.7% REPAYMENT PERIOD 24 MONTHS *A typical bank loan. MoreP252 CEEFAX 252 Tue 5 Jun 21:12/35 4/5 ! "£ KNOW YOUR CREDIT The preceding chart shows that it can cost you a lot more than you think to buy your video on credit. If more people shopped around for credit they they would know more about how it works. This would bring competition into the credit market which could lead to lower credit rates. Always ask for a written quotation. MoreP252 CEEFAX 252 Tue 5 Jun 21:18/27 5/5 a "£ KNOW YOUR CREDIT Although shops advertise instant credit and interest free credit, in general, these facilities are open only to those people who hold cheque cards. If you have any questions on credit write to: Richard Thomas National Consumer Council 18 Queen Anne's Gate London SW1 More