It Isn't The Same As Cash

Robert bought some furniture with a 24-months-same-as-cash deal. He just got a collector call saying the term is actually 12 months. Dave thinks he signed and got more than he bargained for.

QUESTION: Robert bought some furniture with a 24-months-same-as-cash deal. He just got a collector call saying the term is actually 12 months, and now the balance is $2,800. He thinks he got messed over on the percentage rate, but Dave actually thinks he signed and got more than he bargained for.

ANSWER: You agreed for this to convert to a finance contract if you didn’t pay it off in 12 months. You did not pay it off, so they’ve charged you interest since the 12 months was up, but they’ve also charged you for the entire time.

You can dispute it, but you’re probably going to lose. These contracts are a bear trap. They are designed to screw you. I hope you’ve learned never to play with snakes again. It’s going to cost you $1,000 to learn this lesson.

If I were you, I’d get it settled, pay it, and be done with it forever. Never, ever finance anything again as 90-days-same-as-cash or 12-months-same-as-cash, because this is what happens to people all the time. They’re designed for you to not pay them off so they can back-charge interest through the entire time.

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