Here are
some advertising pitches that might capture your attention:
"Zero- Percent Financing!"
"No Interest and No Payments Until 1999!"
"No-Interest Financing."
Here's the catch: Hidden costs or conditions may nullify any
advantages of so- called "no-interest" payment plans.
You have to be careful and study the details.
For example,
in many "zero-interest" offers you do not have to
pay interest for a specified period, say, six months -- but
you must pay for the purchase in full by that date or you
will be charged for interest on the entire purchase dating
back to the purchase date. That detail often is included in
the papers people sign, but they may not notice it.
Some "zero-interest"
offers have important restrictions -- they may apply only
to certain brands, or only to purchases over a minimum dollar
amount.
In another
variation, some "zero-interest" offers actually
charge you for interest each month from the date of purchase
and then provide a rebate at the end of the "no- interest"
period -- but only if the payment has been made in full by
then.
Some ads
tout "no payments for six months" -- but, when payments
do begin, you are obligated to pay interest that accrued from
the date of purchase.
The Attorney
General's Office sometimes challenges certain "zero-interest"
ads as misleading or deceptive. But consumers need to be careful
to protect themselves.
| Follow
these tips to avoid being misled by "zero-percent"
advertising: |
