Courts, Comet, Powerhouse, Time Computers and Dabs.com were all advertising “interest free” credit or “0% APR” or “interest free option/choice” deals for their products. In fact, interest was payable from the date of the agreement if a lump sum was not paid off in full by the end of the interest free period.
The OFT takes the view that such adverts break the Consumer Credit (Advertisements) Regulations of 1989, which ban any advert that states or implies the consumer can get interest-free credit where in fact he would be liable for consumer charges.
Under the Stop Now Regulations the OFT is required to consult with companies or traders it believes to be in breach or threatening to breach a number of laws harming the collective interests of consumers covered by those laws before taking court action. It can seek written assurances in lieu of court action.
The OFT has already secured similar agreements from seven other major retailers in the past year and said it will continue to press companies to comply with the law.