BNPL plans limited
Argos has scaled back its buy now pay later (BNPL) options for customers, causing worry for those planning their Christmas shopping. Previously, the retailer offered BNPL plans for three, six, or 12 months. However, the six-month option has quietly been removed, leaving customers with only three-month or 12-month options, depending on their spending amount.
Customer outrage
Shoppers have expressed their frustration and disappointment with Argos for removing the popular six-month interest-free option. Customers took to social media platforms such as X and Facebook to voice their concerns and demand an explanation for the change.
Increased risk and consequences
Under the new credit options, customers purchasing items such as a £99 Fitbit or a £149.99 Amazon Fire Tablet would need to pay off their balance within 90 days, rather than the previous six-month period. If they fail to do so, they will be charged a high interest rate of 34.9% on the outstanding amount, dating back to the time of purchase. Alternatively, customers can choose the 12-month option by spending over £199 but would accumulate more debt.
Consumer advocate calls for more flexibility
Consumer champion James Daley from the Fairer Finance campaign website expressed his disappointment in Argos' decision, stating that it would have serious consequences for shoppers during the costly holiday season. Daley urged Argos to provide more flexibility for customers, even if a small fee is charged for the six-month option.
The Argos Card and options
The Argos Card is a revolving credit store card that provides a single credit limit for customers to purchase items from Argos without needing to re-apply for each purchase. The credit limit is regularly reviewed and can be increased or decreased. Customers can choose between normal credit with up to 56 days to pay off the balance or explore Buy Now Pay Later plans, which are not guaranteed.
Argos response and customer usage
An Argos spokesperson defended the changes, stating that the company regularly reviews its credit terms to meet customer needs. They highlighted the buy now pay later plan for any product over £199, allowing for a 12-month payment option. Argos acknowledged customers' appreciation of the Argos Card and their ability to buy items without paying interest, as long as the full balance is covered within the agreed term.
Alternatives and advice
Other retailers, such as Very.co.uk and John Lewis, offer different payment options to consumers. Very.co.uk allows customers to split payments into three over three months with no interest, or delay payments for up to six months after spending £50, or 12 months after spending £300. John Lewis offers interest-free payment plans on selected items costing £200 or more, with the duration depending on the product. Money expert Martin Lewis has previously warned about credit card debt during the holiday season and shared tips on responsible borrowing.
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