Explanation of the Flexible Account Agreement
Flexible Account allows you to spread the cost of purchases offered in the catalogues, leaflets, website or literature of Littlewoods Ireland which is a trading brand of Shop Direct Ireland Limited.
Minimum Payments & Statements
Every 4 weeks, you will receive a statement detailing what you've bought, paid for or returned and what your next minimum payment should be. This will be 10% of your Flexible Account balance, or €10, whichever is greater. Some months it may suit you to pay more, or even the full balance. Other months you may just want to pay the minimum. You choose whatever works best for you.
Using Your Flexible Account
The account is a continuing, open end, running account. There is no need to have cleared your balance before you buy again using the account. We simply add the new value of the order to the outstanding balance and you can continue to spread the cost, provided you keep up your repayments and stay within your credit limit.
Your Application & Credit Limits
We review each new account application. Approval of credit is subject to status. If approved, you will be granted an initial credit limit. If your application is not approved, you will be notified. We are happy to consider any request for an increase but reserve the right to decline it. If you think your credit limit is not enough for you, contact us on 01 811 2222. We may decrease your credit limit from time to time, at our discretion, to reflect factors such as changes in your personal status, shopping requirements, or other characteristics. If we do so, we will notify you. We may also suspend your credit account or reduce your credit limit so you cannot make further purchases against your Flexible Account if you fail to keep up your repayments.
How we charge interest and cost of credit
Interest is charged on the daily balance on your account. The annual percentage rate (APR) is variable and is currently 39.9%. Interest is applied on each statement date.
As a representative example, if you are given a credit limit of €350, you then use your Flexible Account to buy a single item for €200 and make the minimum payment each month of 10% (or €10 if greater), the total amount payable will be €251.06 spread over 21 payments and the total cost of credit will be €51.06.
Promotional Offers and Buy Now Pay Later (BNPL)
We may offer special promotional interest rates and special offers such as BNPL promotions. BNPL will be available to selected customers. The terms of these will vary from offer to offer and you should ensure you understand them before taking advantage of them. In particular, promotional interest rates will usually only apply if you keep up your repayments. BNPL offers will normally be interest bearing, unless you pay for the item in full before the end of the BNPL period but, if you do so, you will not have to pay any interest on that purchase. Some BNPL offers may not incur interest in the BNPL period. We will tell you which options apply to your account and which purchases they can be used for. We will publicise special promotional interest rates and BNPL offers in our books, websites and advertising.
If the offer does attract interest during the BNPL period but you do not want to pay interest, you must pay the full price of the relevant purchase and tell us you are doing so by calling us on 01 811 2222 before the due date shown on your statements. If you do not do this, interest from the date of the purchase will be charged to the account at the end of the BNPL period. If you are not sure how BNPL offers work, call us on the above number.
Sometimes, we may offer reduced interest rates (called Promotional Interest Rates) on certain purchases. We will advertise the full details of these promotional offers, including the items to which they apply, the period they last and any special conditions. We will charge interest at the promotional interest rate on the outstanding balance in respect of items purchased on Promotional Interest Rates, for the period of the offer. After the end of that period, we will charge interest at the standard rate. However, as these rates are special offers, they are conditional on you keeping to the terms of the account. If you do not pay, we may withdraw any Promotional Interest Rates and charge interest at the standard rate on the full outstanding balance.
If you don't pay off the full balance every month, we apply the payments you have made between balances on Promotional Offers, BNPL and standard interest rates in a specific order. Details of this are contained in the agreement and in the pre contract information form we give you before you enter into a credit agreement with us for the first time. You should read these carefully as they do affect the amount of interest you pay.
If you miss a payment
The sooner you contact us the sooner we can help. Missing payments, or paying less than the minimum payment shown on your monthly statement, will mean you pay more interest and there may be additional costs to pay. We may also register information with credit reference agencies and it may make it harder for you to obtain credit in future. We may also transfer the account to a debt collection agency and may result in legal action being taken.