"Zero" Percent Interest?
This consumer alert deals with the confusing advertising that says "0" percent interest until
next year, or ads that say you don't pay interest on your purchase until next year. Is "0"
interest really "0" in these ads.
First when the ads say you don't pay interest on your account until next year, that is NOT
"0" percent interest, it simply means the interest payments are postponed to the end of the
year, then you pay the interest on the past year. It's like running a taxi meter and you will
have to pay it all at the end of the end of the year. It is NOT "0" interest it is only
postponing it for a year.
Other ads say "0" percent interest, but if you are late on a payment you have to pay all the
back interest at 26% and continue paying that interest rate for the rest of the loan.
Read the fine print, "0" is not always "0". Don't get ripped off. | |
