Can a company add interest charges during a no interest promotion?

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Can a company add interest charges during a no interest promotion?

Ad states no interest for 6 months. Company has charged interest rates before the 6 months are over.

Asked on February 17, 2011 under Bankruptcy Law, Oklahoma

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

The company has to honor the terms of its own promotion. Of course, promotions, sales events, specials, etc. are notorious for having various limitations, caveats, and qualifiers in "fine print" (like the warnings at the bottom of drug commercials). For example, a common one is "no interest for qualifying purchasers" or "no interest for purchasers with good credit" or the equivalent--and then they classify you as non-qualifying or not good credit. Another is that you don't *pay* the interest before 6 months--but it starts accruing. You should review any promotional material or agreements regarding the promotion again, to see what limitations there are; if there are limits, the company can probably take advantage of them, but at the end of the day, it must honor its own terms, whatever they happened to be.


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