How do Littlewoods work?

Always Be Closing

Hi guys

Opened an account and they gave me 400 quid credit.

Never asked for any card/bank details or photo ID.

I ordered 2 items amounting to just under 400 and it's given me order confirmation and delivery date.

Surely that can't be it?

ohnonotgmail

Did you take a look at the interest rate?

Always Be Closing

ohnonotgmail wrote: »

Did you take a look at the interest rate?

No - to be honest the items I were looking for were unavailable everywhere else so I don't really mind paying over the odds interest wise, I'm just surprised how easy it was and the fact they required absolutely no information from me other than name, address, phone number, email and date of birth

ohnonotgmail

Just as an FYI the rate is 44.9%

NIMAN

You'll tend to find these are in favour of the company, not the customer.

Thats a shocking APR rate. Make sure you don't default on any payments for sure.

Sebastian Dangerfield

Always Be Closing wrote: »

No - to be honest the items I were looking for were unavailable everywhere else so I don't really mind paying over the odds interest wise, I'm just surprised how easy it was and the fact they required absolutely no information from me other than name, address, phone number, email and date of birth

For the amounts involved, I think the reward of the high interest rate from people who pay outshines the risk - potential lost revenue from people who don't. Even at that they will employ debt collection agencies where they feel escalation is needed.

A lot of their customers from my experience are people who will max the limit, then spend any additional credit arising from payments, so they are paying 40% on their full balance pretty much all the time.

I use them now only for sales - as you say there are things on there you don't get everywhere, and in sales the prices can be better than shops too (way over the top on non-sale stuff though). I pay as I buy, but definitely find it useful.

Do you intend to use the credit or pay it off immediately?

worker bee

I find them very good. Deliveries normally come ahead of or exactly on time.

Returns are easy - through the local shop - and are free.

Just make sure to pay as you order or as soon as you get the bill. Try not to use them as a credit card and you'll be fine.

jacksie66

This post has been deleted.

worker bee

Well, there's no interest if you pay ahead of time.

The sale prices are very good. And they have offers where you get say 20% off for spending more than €50 etc and these are quite good too.

The prices are there to see and to compare so I'd say I've done well with them.

Sebastian Dangerfield

jacksie66 wrote: »

So they're massively overpriced and charge insane interest. Why would anyone use them?

1) Not everything is massively overpriced. There are some really good bargains to be had in their Sales, which generally start earlier and last longer than shops.

2) You don't have to use credit, you can pay on checkout.

3) The customers of theirs I know would be deemed sub-prime by most lenders. They do charge insane interest, but some people are ok with that - they're happy to pay extra to buy something they couldn't otherwise afford. They don't think of it as 44% per annum, they think of it as €16-17 per week on €500, which is deemed ok. They convince themselves they'll pay it down but don't.

*speaking based on conversations with friends and family, not every LWs customer*

Jose Maria

They have a 20% off your first credit order at the moment, could you sign up, order your goods, get your 20% off and then pay back the loan immediately??

kathleen37

I always thought their prices were higher because they do offer the 20 week/52 week interest free credit?

I've used them in the past - on that basis. I wouldn't use them if I was being charged interest on their original prices. I've never had any issues with them.

worker bee

I would say you could - check the small print to see if you are charged a minimum amount no matter when you pay back etc. And if there's none then go for it. It's just really important to set a reminder on your phone etc if you are delaying payment. Cos if you start running those interest rates then you are seriously overpaying for goods.