Buy now pay later advice please

That makes more sense, if other items were added but the DD wasn’t altered to make extra payments, then interest would have accrued. Change your password and don’t tell your DH the new one, so that he can’t buy anything else from them.

Rosie1959
Yes, I probably originally had that plan in mind, however things went awry and now here we are . Update is that I have made the payment in full and have also made a complaint ,I have spoken to the UK Complaints team and am expecting a call back today .
I will get back to give the response

Germanshepardmum, Unfortunately , not so the statements only go back to Oct 2022.
It seems that other small items purchased also had tiny outstanding balances (when I say tiny under £2.00 !)were incurring interest .....

tickingbird ,

Neither do I ! This the the whole point , it is a complete nightmare . I have not defaulted on any payment and now that I am in the account I can clearly see that the payments have been taken monthly on a regular basis no defaults as some have suggested.
The fact is/was that Yes I knew payments were being made from our joint account to this company (Very) but my husband has an account and has often purchased things from them so I was not too concerned about the monthly payments ,Although ironically I have often asked him not to be for purchasing via this medium rather than paying direct

When you first took the loan out OP what were the terms for bnpl usually with such small amounts as your new coat it would be a three month term or at the most 1 year.
So if it was 3 months your DDM would have to have been around £50/to clear the balance in time.
If you did not clear the balance by the end of the term interest would accrue on the balance due.
I occasionally use this method to get a discount on products but tend to make the payment in full once I get the first statement if it is for a smaller amount.

Speak to Citizen's Advice or Trading Standards. They will know whether this is legal or not.

I think it all hangs on the messages going into your spam for three years and you not noticing !!!

Is the OP confusing a credit card type of Catalogue account where you will be charged interest each month , or an actual Buy Now Pay later account where you don’t pay anything for a number of Months and then the payments start?
I don’t think we were in lockdown until after March 2021 so it all seems a bit confusing.

GSM is right.

If you look at the statements you will see exactly how the original cost has escalated between Jan 2021 and October 2023.

@Chestnut, thank you for reply , yes I am fully intending to take this further .however BNPL is unregulated (have spent lots of time researching over the week end ) Martin Lewis has lobbied parliament to have this changed (July 23) to no avail . Section 75 does not cover BNPL payments .
Which is obviously what I had done knowingly at the time . What I do not comprehend is "the how and why" this has rolled over for 3 years and I am "still "owing £196 an amount that will increase daily .
like many people ,I did not buy via this method because I could not afford to pay in full at the time but because it was available and I fully intended to pay ,with the option of 3 months to pay .. I need to investigate how it got to this point ...!!! (shock)

If the company in question is Next (OP’s description fits), if the amount outstanding on a credit account is not paid in full when a statement is generated interest is charged on the entire balance outstanding - i.e. interest is compounded, as with credit cards. There is nothing to be done other than paying off the entire amount outstanding.

You really have had some bad times with all the flooding and I can't imagine how difficult that has been. So sorry for that.

The first thing I would do is get a statement showing all the payments and the running balance, so you can see how the amount owing has changed over time. At least that will give you an idea of what has happened and how it happened. You could then try contacting them with a sob story of how you've been flooded twice etc. and tell them how much you have actually paid over time. If they are not sympathetic then I agree about contacting Martin Lewis or another such financial service to see what they advise. Alternatively, if you can afford it and don't want the hassle, just pay the amount owing and be done with it. At least that will stop the interest accumulating.

£600 on a £150 loan while you were making regular payments even if they were only the minimum?

Those numbers do not look right unless there have been other charges e.g. punitive fees for late payment.

If you put the numbers into an APR calculator at an average APR of 25% over three years you will get nowhere near that.

This will take you to a calculator.

tinyurl.com/y7h7h9dn

Ultimately, you are responsible for having taken your eye of the ball. You bought the coat and presumably agreed to pay it back over an agreed period although you don't say what that was. If this is a catalogue company, are you sure you haven't bought addition items and added them to a rolling account without adjusting your payments?

You have had some emergencies but you say you have been back in your house since March 2022 and are only now, 18 months later, realising what has happened.

There will be an online account where you should be able to check every statements to determine exactly how this debt has accumulated. I doubt that there is anything you can do as you agreed to the terms but it will at least explain how £150 ended up costing £600.

Only the minimum payment was collected each month tickingbird. That wouldn’t cover the interest which was accruing - exactly like credit card debts if you don’t pay the amount owed in full each month.

Be careful of deferred payments they are credit agreements with T&Cs
A new Sofa £250 pay in 12 easy installments 0% interest.
That only applies if you keep up the payments, if you default the interest rate increases a lot and may double the cost. The OP had unexpected circumstances that affected payment, regardless you do need to be aware how these “deals” can bite you

I don’t understand why you owe more than you originally did if the direct debit has been collected for so long or have I misunderstood?

You seem to have had a few tough times, this situation must have been an added shock. Sorry.
As others have said, companies like this do make money from people’s honest mistakes. I also think that you should contact the company and make a final payment. Even if involves borrowing from you bank or putting it on your credit card.
If I buy anything on line I always put it on my credit card, then I know I’m only dealing with my bank and the choice of payment in full or spreading it out, is mine.
Hope it’s sorted soon.

Was it Next by any chance? Here are their standard T&Cs for credit purchases. Note the references to interest and minimum payments.
xcdn.next.co.uk/pdfs/Directory-Card-Credit-Agreement-v4-0-NoV4-DW-20180723.pdf

You seem to have received emails from this company - even if they go into your spam box they are easily retrieved. I’m afraid you didn’t check their conditions for a credit purchase when you bought the coat. In all likelihood you would have seen they are not unlike credit card conditions, whereby if you only pay the minimum amount each month the debt just keeps growing because of interest which is greater than the minimum payment. These small dds were probably just such minimum payments.

Contact Moneybox at the BBC Radio 4, they sometimes cover this sort of issue. Maybe Martin Lewis? I totally agree that the interest rate is extortionate. I'm sure that you are not the only one who has been caught.

You have to be so so careful NanaTuesday. They make their money by catching people out which is what happened to you in unfortunate circumstances. I’m always afraid of being caught out so am extra vigilant. It’s entirely legal as you signed the agreement, which is invariably in small print. Have you noticed how high the interest is on a credit card and how that accrues. Worse are these money lending companies with extortionate nearly 100% interest rates? Poor people who can’t get credit elsewhere are sometimes forced to use them and end up deeper in debt. I think they’ve stopped these companies advertising on the tv which is something.

I m not sure I fully understand what are you saying
Do you mean you ve been making payments for 3 years but not enough to cover the interest which has accumulated to £196 ?
Who set the monthly amount you needed to pay to cover all costs ?
If they have sent you emails warning you that you were in debt and you haven’t seen them, for whatever reason then I m afraid you won’t have a leg to stand on and they ve done nothing wrong
I d pay up and forget about it it doesn’t sound as if they re at fault but through your negligence (albeit a valid set of problems took your eye of the ball) you ve missed the warnings
I d put it behind you continue enjoying your 3 year old coat and look to the future

It does happen. Years ago I knew someone at work who bought a bra from somewhere similar to what the OP describes. It didn’t fit so she returned it - or thought she had. She was going through a divorce at the time and had other problems so hadn’t realised that the parcel hadn’t been taken to the PO as she misremembered, but was tidied away and left in a drawer for ages.

As with the OP, she had a lot going on financially because of the divorce, and didn’t notice the payments coming out of her account. When she did notice she stopped them, thinking that the bra had been returned. Later, she applied for a mortgage in her own name and was horrified to find that she was refused because of what showed as an unpaid debt. The payments she had made for the bra more than covered the cost of it, but the interest mounted after the payments stopped, and late fees were added each month.

I can’t remember what happened in the end, but it was out of all proportion to the cost of a bra - particularly as she could have afforded to pay outright and as it didn’t fit anyway.

Her fault, no doubt- but these things do happen, particularly when people are under stress.

Have you checked with them? Maybe the DDs were taken in error? Do you still have the catalogue so that you can read the current interest rates?

Could be a simple error on their part, most reputable ‘ ‘ ‘Catalogue’ companies only charge a small interest fee.