UNDERSTANDING YOUR LITTLEWOODS IRELAND ACCOUNT
Warning: This is high-cost credit. Consider alternative options before applying for this credit, including alternatives from other lenders regulated by the Central Bank of Ireland
Here is an explanation of the key features of the Littlewoods Ireland Flexible Account. You should read this information carefully along with the Standard European Consumer Credit Information sheet (SECCI) and the credit agreement, both of which are provided later in this journey.
Please do not sign the credit agreement until you have considered all of the information provided and are happy to proceed.
If you have any questions about the Flexible Account, please ring us on 01 811 2222.
The Flexible Account allows you to spread the cost of purchases made from Littlewoods Ireland and is suitable for customers who do not want to pay in full when they buy goods and services.
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 value of the new 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.
We review each new account application and approval for an account is subject to eligibility and lending criteria. Once approved, you will be granted an initial credit limit.
We are happy to consider any request you make for a credit limit increase but we reserve the right to decline it. If you think your current credit limit is not enough, you may contact us on 01 811 2222 to request an increase.
We may decrease your credit limit to reflect factors such as changes in your personal status, shopping requirements, or other characteristics. If we do so, we will notify you. If you fail to keep up your repayments, we may suspend your account or reduce your credit limit so you cannot make further purchases using your account.
We will issue you with a statement every month detailing what you've bought and returned, what payments you've made and what your minimum payment is.
The minimum payment will be 10% of your current balance (the outstanding balance less the balance of any BNPL transactions in the delayed payment period) or €10, whichever is greater unless your current balance is less than €10, in which case the minimum payment will be the full current balance.
You must pay at least the minimum payment each month but you can pay more if you wish to do so. If you only make your minimum payment each month, it will take you longer and cost you more to pay off your balance. Some months it may suit you to pay the minimum payment and some months you may wish to pay more, even the full balance. You can choose whatever works best for you. Any payments you do make will immediately reduce the outstanding balance so the more you pay and the earlier you pay, the less interest you will be charged.
Buy Now Pay Later (BNPL)
We may offer you the opportunity to defer payment on some transactions for up to 12 months with our Buy Now Pay Later offers.
With BNPL transactions you do not have to make any payment during the delayed payment period, which begins at the point of order, including transactions for items which are purchased on a pre-order basis or are not ready for immediate despatch.
Interest starts to accrue from the date of order but it will not be charged to the account until the expiry of the delayed payment period. However, if you pay the full purchase price before the end of the delayed payment period, no interest will be charged.
So if you want to avoid paying interest, it is important you pay for the transaction in full before the end of the delayed payment period. If you do not, all of the interest that has accrued on the transaction will be charged to your account at the end of the delayed payment period.
Any payments you make to BNPL transactions will immediately reduce the balance of that transaction so the more you pay and the earlier you pay, the less interest you will be charged for that transaction.
When you want to make payment to a BNPL transaction, you must target your payment to that particular transaction. You can do this by clicking on the "Pay Buy Now Pay Later" tab in the Payment section of My Account online and choosing the specific BNPL transaction or, if you are paying over the phone, by asking our advisor to target the payment to the particular BNPL transaction. If you do not target your payment, it will go through the account's payment allocation rules and may not be applied against the intended BNPL transaction.
Cost of Credit
The annual percentage rate (APR) is currently 39.9% and is variable meaning that we have the right to change it subject to giving you written notice but we will not increase it above a maximum of 43.7%.
The borrowing rate is also 39.9% although we may, from time to time, offer a lower rate (a Promotional Interest Rate) on selected purchases or types of purchase. We may vary the borrowing rate subject to giving you 30 days notice. If we increase the borrowing rate and you do not wish to accept the new rate then you can decline it and instead pay off your outstanding balance at the original rate over a reasonable period that we will agree with you.
Interest is charged on the daily balance (excluding any balance on BNPL transactions in the delayed payment period), is compounded daily and is applied to the account every month. If you pay off the full current balance owing on your account by the payment due date shown on your statement you will not have to pay interest for that statement period.
As a representative example, if you 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 €256.77 spread over 22 payments and the total cost of credit will be €56.77.
It is very important that you pay at least the minimum payment every month by the due date. Missing payments may mean your account is passed to a debt collection agency and may result in legal action being taken against you. We may give details to credit reference agencies and you may find it harder to obtain credit in the future. We may also withdraw any promotional interest rates that apply and start charging interest at the standard interest rate.
If at any time you think you have a problem in keeping up with your repayments, please consider the following options:
1. Contact our Collections Team on 01 811 8636. They can help you work out a payment plan to suit your situation.
2. The Money Advice & Budgeting Services (MABS) is a national free, confidential and independent service offering credit counselling services. Their number is 0761 07 2000.
3. Alternatively, StepChange Debt Charity Ireland is a free debt advice service offering independent and impartial debt help. Contact them on Freephone 1800 937 435.
Changing your mind about your Credit Agreement
You can decide not to go ahead with the credit application at any time until the agreement is made and, even afterwards, you will still have time to change your mind and withdraw. You have fourteen days to withdraw from the agreement beginning the day after the agreement is made. We treat the agreement as made when you sign it. You can withdraw by sending a written notice of cancellation to:
Shop Direct Ireland Limited, Cape House, Westend Office Park, Blanchardstown, Dublin D15 Y9DV.
Alternatively, you can communicate your withdrawal to us through Webchat on our website.
If you do withdraw after the agreement is made, you will have to pay back any money you have borrowed and any accrued interest without delay and within 30 days at the latest.
We have the right to vary the terms of the credit agreement including the interest rate. We will give you plenty of notice in advance of any change which is not to your benefit so you can pay off the balance before the change takes effect if you are not happy.
How We Use Your Data
NOTICE: Under the Credit Reporting Act 2013 lenders are required to provide personal and credit information for credit applications and credit agreements of €500 and above to the Central Credit Register. This information will be held on the Central Credit Register and may be used by other lenders when making decisions on your credit applications and credit agreements.
The Central Credit Register is owned and operated by the Central Bank of Ireland. For more information see www.centralcreditregister.ie
In order to process your credit application and during our relationship with you, we may share information with third parties including credit reference agencies or registers.
Under the Credit Reporting Act 2013 we are required to share information on qualifying credit applications and agreements with the Central Credit Register ("CCR"). To do this, we will supply your personal and credit information to the CCR and they will give us information about you. This will include information about your financial situation and financial history. The CCR will also link your records together to create a Single Borrower View.
The CCR provides a reliable and secure source of credit information, showing an accurate picture of your qualifying loans and guarantees reported which will facilitate enhanced creditworthiness assessments and responsible lending.
We will continue to exchange information about you with the CCR while you have a relationship with us. We will also inform the CCR about your settled and closed accounts. If you borrow and do not repay in full and on time, the CCR requires us to report on any restructure during the lifecycle of the agreement due to arrears or financial distress. This information may be supplied to other organisations by the CCR.
When the CCR receives a search from us they will place a search footprint on your credit file that may be seen by other lenders.
You may request a credit report free of charge once a year. Further information can be found in the Consumer Area of www.centralcreditregister.ie.