Best Buy & Geek Squad Policies

[khenline86]

I purchased some items a while ago, and just had the promotional payoff date ending on March 20th. I kept an eye on the remaining payoff amount, and continually paid enough off to have it paid off by March 20th. As of 3 weeks before the promotional ending date, it said I owed a certain amount, and I sent in that amount, plus a little extra to ensure that it was completely paid off.

I sent in that payment, and then for some reason, it says my payment was not enough to cover the remainin balance?! Now, because of Best Buy and the credit card center being VERY misleading, I have to pay almost $200 worth of interest because I have a smalle remaing balance of $12!!!

I paid my minimum payment, plus alot more each month. Also to ensure that I would have it completely paid off, I made mulitple payments each month, and for some reason that was still not enough! I mean paying $100 on a $25 minimum payment each month, you think that would well cover it!

I even had an employee at my local Best Buy tell me that my payments go to my closest ending promtional payoff date first! How misleading! If I had known this would happen, I would have sent in more money on my last payment... : (

If I had to recommend this credit card service or this store, I wouldn't if this is how things are handled...very sneaky if you ask me! I am planning on not buying anything else from this store if this is how things are run! I will also be sharing this with family and friends and encourage them to find else where to purchase their large purcahses on an interest free plan.

Very disappointed....

[Mbrguy Emerging Expert]

Unfortunately, they have to apply the payments in accordance to federal law (CARD Act). Have you spoken with HSBC to see if they will work with you on this? This wasn't any "sneaky trick" as they have no choice in how to apply the payments, but maybe they can remove part or all of the interest charge if you explain the situation.

[Jimmienomam]

I agree with MBRguy as the earlier payments that you paid "in excess" is applied specifically how the Credit Card Act of 2009 designates. This means that payments dont just go to the oldest purchase, but get split from highest to lowest interest rate items. I know this sounds shady, but HSBC doesn't make this standard on how to disperse payments. it's actual law that they have to abide by.

But that being said you may have a case. According to the CARD act mentioned above, during the last 2 billing cycles before a deferred unrest is due, the whole amount (after the minimum due I assume) goes directly to the item that is under deferred interest.

So if you truly did check how much was due and paid the minimum amount plus the amount due on deferred interest item, then there would have to be another reason for the interest being charged. Like late payment during deferred interest promo etc

[Ryan-BBY Senior Social Media Specialist]

Hello khenline86 -

Melissa from our Social Media team, will be reaching out to you regarding your concern. Thank you for your continued patience!

[Melissa-BBY Senior Social Media Specialist]

Hello khenline86,

When dealing with an interest free financing promotion, it can be concerning trying to ensure that you are making the payments in time to avoid the deferred interest charges. I am sorry to read that your efforts in ensuring this didn’t happen were not as successful as you expected.

As Mbrguy and Jimmienomam mentioned, the payments for our credit cards are applied based on the credit card laws that were put in effect the past few years. Based on this HSBC, who issues our Best Buy credit card, Reward Zone credit card or Reward Zone MasterCard; payments are applied first to all minimum payments that are due on the account. Next, if funds remain in the payment, they are applied to any purchases that are incurring interest charges. Lastly, the payment would be applied to purchases made with a financing promotion, in the order they are set to expire. I apologize if this had been presented any differently to you, as the statements should indicate how the payments had been applied.

Unfortunately, as the cards are issued through HSBC, we do not have direct control or influence over their accounts or policies. I have forwarded your concerns regarding this to them however, to review further. As soon as I receive a response from them, I will send you a private message, which you can view by first verifying you are logged into our forum, and then clicking the envelope icon in the upper right corner of this screen.

Sincerely,

[rellarillear]

Synopsis: All credit cards will operate this way, as it is the law, regardless of the bank or retailer.

[Bob_A]

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rellarillear wrote:

"Synopsis: All credit cards will operate this way, as it is the law, regardless of the bank or retailer."

______________________________________________________________________________

WRONG!  That simply isn't true.

"ALL Credit Cards" Do not charge $200 of Interest on a $12 balance.

"ALL Credit Cards" Do not charge deferred Interest retroactively to the first day of original purchase.

"ALL Credit Cards" Do not charge the extraordinarily high and exorbitant Interest rate of 29.99%, compounded monthly.

Beware the Best Buy Spin Doctors!

[Mbrguy Emerging Expert]

Bob_A, don't take things out of context.  The comment you are replying to was basing itself on the OPs wondering about how HSBC was applying the payments, which IS regulated by Federal Law.

Federal Law dictates how payments above the minimum are applied to the balance, which is what this thread was mainly about(based on the OPs opening post).

BTW, "deferred Interest" plans do typically start to accrue interest from the day of original purchase.  The interest is just not charged as long as the customer makes the proper payments according to the aggreement they signed(thousands of people do this all of the time with no problems).  I'm sure that there may be a "deferred interest" plan that starts interest from a later date, but I'm not aware of any.  And even if there were, why would they use "deferred" in the name of the promotion if they aren't deferring anything and instead just not charging interest for a set period of time? 

Just a FYI, Apple has financing with deferred interest programs also.  Apple's Deferred Interest Program.  (curious how some people on these forums were mad at Best Buy over this deferred interest program and said that they should have shopped at some other store - some even mentioning apple - but they didn't understand that they'd be in the EXACT same predicament if they didn't pay their bills properly with those companies either)

Hmmm, Apple also charges interest retroactively from the date of original purchase.

If you miss a payment, pay late, or don't pay it off on time, their current interest rate is 23% (a bit lower, but that all depends on the bank and the person's individual credit).

And if you miss a payment, pay late, or don't pay it off on time, i'm sure that you'll have a big sticker shock on the interest that has accrued on the apple product.

This is how deferred interest programs work and it's not just Best Buy that offers them.

[khenline86]

Just an update: I got in touch with someone on the phone with the credit card service through Best Buy that apologized for the miscommunication and was kind enough to explain what happened to me. They were also kind enough to drop the interest charge. When I emailed the company, they kind of brushed it off and didn't really have much to offer. If this happens to anyone, I highly recommend calling up to the Best Buy Credit Card center to see what they can do. I however will be very careful the next time I get something on a no interest policy again, if I ever do. All in all, I did feel that the lady in customer service was very helpful and did all she could to get the interest off for me, which I thought very highly of.

[Jimmienomam]

Great to hear! I was hoping they could do something like this for you. You seemed responsible and wanted to pay it properly just were unaware of how payment was dispersed.