Terms & Conditions for a credit account

With Shop Direct Finance Company Limited, whose registered office is at Aintree Innovation Centre, Park Lane, Netherton, Bootle L30 1SL (the Creditor) and you.
Key features

1. Credit Limit: You will be notified of a credit limit upon successful application.
2. The credit under this agreement is running account credit and is to be used by you to make transactions for goods/services and digital content from retailers, outlets and brands agreed by us from time to time. We may debit your account on each occasion upon which you provide us with authority to do so, including verbal authority. This agreement is open ended and does not have a fixed duration.
3. You will be sent a statement every 28 days. The minimum payment due date will be shown on your statement and will be 20 days after the date of your statement.
4. The minimum payment due for each 4 week statement period will be shown on each statement. The minimum payment on current balances will be £5 or 7% whichever is greater or the full current balance if less than £5. You may pay more if you wish to do so. Any insurance premiums due, Buy Now Pay Later set up charges or default charges (described below) that are applied in the statement period will be payable in full in addition to the minimum payment described above.
5. For certain items we may ask you to make an additional payment to your account in relation to that item. This additional payment will not increase the price of the purchase. If this requirement applies we will determine and notify you of the amount and timing of the payment when you order the item.
6. Allocation of payments: Any payments made under this agreement will be applied in an order depending on the amount you pay and what offers you have taken up. We may change this order for specific promotions and if we do so we will tell you when we give you details of the promotion:
All payments will be applied firstly in the following order;
1. Any Payment Protection Insurance premiums and then other insurance premiums (including, first, any arrears).
2. Any default charges and then any other charges (including, first, any arrears).
3. Any other arrears or overdue sums on the account.
If you have paid less than the minimum payment, we will then;
4. Repay items on the standard interest rate, If you have more than one item, we will apply to the oldest item first;
5. Repay items on Interest Opt-Out.
If you have more than one item, we will apply to the oldest item first; or If you have paid exactly the minimum payment, we will then;
4. Repay items on Interest Opt-Out, promotional interest rates and the standard interest rate pro rata; or
If you have paid more than the minimum payment but less than any applicable optional Take 3 payment, we will then;
4. Repay the minimum due for items on Interest Opt-Out, promotional interest rates and the standard rate pro rata
5. Repay items on promotional interest rates. If you have more than one item, we will apply payment to the highest interest rate first and if there is more than one item on the same interest rate, we will apply to the oldest item first.
6. Repay items on the standard interest rate, If you have more than one item, we will apply to the oldest item first;
7. Repay items on Interest Opt-Out. If you have more than one item, we will apply to the olderst item first; or
If you have paid exactly any applicable Take 3 payment, we will then;
4. Repay the minimum due for items on promotional interest rates, the standard interest rate, and any optional payment for Interest Opt-Out and Take 3 Facility pro rata; or
If you have paid more than any applicable Take 3 payment, we will then;
4. Repay the minimum due for items on promotional interest rates, the standard interest rate and the optional payment for Interest Opt-Out and Take 3 Facility pro rata.
5. Repay items on promotional interest rates. If you have more than one item, we will apply payment to the highest interest rate first and if there is more than one item on the same interest rate, we will apply to the oldest item.
6. Repay items on Interest Opt-Out. If you have more than one item, we will apply to the oldest item.
7. Repay items on the Take 3 Facility if applicable. If you have more than one item, we will apply to the oldest item.
8. Repay items on the standard interest rate, oldest item first.
9. If you make a payment that is more than the full balance for all items due for payment (including new purchases) and also have Buy Now Pay Later (BNPL) items which are not yet due for payment, we will apply the excess towards those BNPL items, starting with the item which will next become due.
If you have more than one agreement with us, then unless you notify us to the contrary, we may appropriate any payments received from you to sums due under this agreement or under any other agreement you have with us as we decide.
7. Total amount you will have to pay - Will be provided upon successful application. - Assuming you draw down your full credit limit in a single transaction at your standard rate and repay over 13 equal instalments.

Costs of credit

8. APR - A variable APR will be allocated upon successful account application and will be subject to your credit status.
9. Interest rate: The following will apply as the standard rate; A variable interest rate will be allocated upon successful account application and will be subject to your credit status.
The rate quoted is on an annual percentage rate basis.
10. Charging Interest: If the Take 3 Facility or Interest Opt-Out apply to any purchases on your account, your statement will show a Take 3 Payment. This amount will be the sum of (i) the minimum payment; (ii) any insurance premiums due; (iii) the optional payment in respect of any Take 3 Transactions; and (iv) any optional payment in respect of any Interest Opt-Out Transactions. Take 3 and Interest Opt-Out are detailed in clause 12 of the terms & conditions. No interest will be charged on the balance on Take 3 Transactions or on Interest Opt-Out Transactions for a statement period if you paid at least the Take 3 Payment shown on the previous statement by the payment due date. If you do not pay the Take 3 Payment, interest will be calculated on the average daily balance at the standard rate and applied to the account every 28 days. For all balances which do not relate to Take 3 or Interest Opt-Out Transactions, interest will be calculated on the average daily balance at the standard rate and applied to the account every 28 days.
11. Promotional Interest Rates: We may from time to time offer reduced interest rates (Promotional Interest Rates) on selected purchases or types of purchase ("Promotional Transactions"). We will advertise the Promotional Interest Rate, the period for which it applies ("Promotional Period") and any other additional terms which apply to the Promotional Transaction in such a manner as we consider appropriate. We will charge interest at the Promotional Interest Rate on the outstanding balance in respect of Promotional Transactions for the Promotional Period, and after the end of the Promotional Period we will charge interest at the standard rate. The availability of Promotional Interest Rates is conditional on you keeping to this agreement, and if you do not keep to its terms we may withdraw any Promotional Interest Rates and charge interest at the standard rate on the full outstanding balance.
12. The following repayment options may be offered on selected purchases or transactions as published from time to time:-
12.1 Take 3 Facility: If you have been notified that the Take 3 Facility applies to your account, it will apply to purchases made on the account, apart from BNPL Transactions, Interest Opt-Out Transactions, and Promotional Transactions. We may also exclude other transactions from Take 3 from time to time, and will notify you of them. Purchases using the Take 3 Facility ("Take 3 Transactions") will be charged to your account in full immediately. On the first statement after any new Take 3 Transaction has been charged to the account the optional payment for your Take 3 Facility (which will form part of the Take 3 Payment shown on your statement) will be one third the cost of that Take 3 Transaction. On the second statement, the optional payment will be one half of the remaining balance for that Take 3 Transaction and on the third statement it will be the full remaining balance for that Take 3 Transaction. However, the Take 3 Facility will only be carried forward from one statement to the next if you make the Take 3 Payment shown on the statement in full. If you do not make a Take 3 Payment shown on a statement the Take 3 Facility will cease to apply to all previous Take 3 Transactions, and the outstanding balance for all Take 3 Transactions included in your previous statement will be charged interest at the standard rate from the start of that statement period (or the date of purchase for any items bought in the preceding statement period). Accordingly, if you wish to avoid paying interest on Take 3 Transactions you must pay the Take 3 Payment shown on each consecutive statement. If you do not do so you will lose the benefit of the Take 3 Facility for all outstanding Take 3 Transactions, but will still be able to use it on future Take 3 Transactions.
12.2 Interest Opt-Out Transactions: Interest Opt-Outs of 6 months, 12 months, 2 years, 3 years and 4 years may be available on selected products as advertised from time to time. For Interest Opt-Out Transactions the cost of the purchase will be divided by the number of months in the Interest Opt-Out period applicable to that purchase (i.e. 6, 12, 26, 39 or 52) to produce the amount that will be charged to the account on each statement for the duration of the relevant Interest Opt-Out period. As an example, for a purchase on the 6 months Interest Opt-Out, one sixth of the purchase price will be charged to the account on each of 6 consecutive statements. When an Interest Opt-Out Transaction is charged to your account it is added to any balance of Interest Opt-Out Transactions ("the Interest Opt-Out Balance") carried forward from your previous statement. We then use the new Interest Opt-Out Balance to calculate the optional payment for your Interest Opt-Out Transactions which will form part of the Take 3 Payment shown on your statement. On the first statement after any new Interest Opt-Out Transaction has been charged to the account this optional payment will be one third of the Interest Opt-Out Balance. If there has been no new Interest Opt-Out Transactions on the second statement the optional payment will be one half of the remaining Interest Opt-Out Balance, and on the third statement it will be the full remaining Interest Opt-Out Balance. Whenever a new Interest Opt-Out Transaction is charged this cycle starts again. If you do not make a Take 3 Payment shown on a statement the Interest Opt-Out Balance will be charged interest at the standard rate from the start of that statement period. Accordingly, if you wish to avoid paying interest on Interest Opt-Out Transactions you must pay the Take 3 Payment shown on each consecutive statement. Each amount charged will be treated as a new transaction, and accordingly the cycle described above will restart every month that an Interest Opt-Out amount is charged to the account.
12.3 Buy Now Pay Later Transactions: Selected purchases may be available on one of the following Buy Now Pay Later offers ("BNPL Transactions") as published from time to time. A set up charge may be payable on Buy Now Pay Later Transactions. Any such set up charge will be one of the amounts shown in clause 15 below and will depend on the specific Buy Now Pay Later Transaction offered. We will state the amount of any applicable set up charge when we communicate the Buy Now Pay Later offer to you.
12.3.1 No interest during deferred payment period: The BNPL Transaction will be charged to your account on the order date and will become due for payment on the first statement for which the payment due date occurs after the end of the deferred payment period. Once it is charged it will be shown as part of the outstanding balance and will not become liable for interest and payment, until after the expiry of the deferred payment period. No interest will accrue on the BNPL Transaction until after the end of the deferred period. Amounts owing under a BNPL Transaction but not yet due for payment will be deducted from your credit limit when we calculate the amount you have left to spend. The amount of credit available to you in relation to your account will be reduced accordingly
12.3.2 Interest accruing during deferred payment period: The BNPL Transaction will accrue interest from the order date and will be compounded every 28 days, but this interest will not show on your account until the first statement after the expiry of the deferred payment period. The BNPL Transaction will be charged to your account on the order date and will become due for payment on the first statement for which the payment due date occurs after the end of the deferred payment period. Once it is charged it will be shown as part of the outstanding balance and will not become liable for payment until after the end of the deferred payment period. If the cash balance of the BNPL Transaction is not repaid in full by the first payment due date after the end of the deferred payment period the accrued interest will be charged to your account. Amounts owing under a BNPL Transaction, but not yet due for payment will be deducted from your credit limit when we calculate the amount you have left to spend. The amount of credit available to you in relation to your account will be reduced accordingly. If you pay the cash price of your BNPL Transaction before the expiry of the deferred payment period, you will not be required to pay any interest on the Transaction.
12.3.3 BNPL Transactions will not qualify for Take 3 or Interest Opt-Out.
12.4 All Promotional Interest Rates and the availability of the Take 3 Facility and Interest Opt-Out are conditional on you keeping to the terms of this agreement. If you do not do so we may remove the Take 3 Facility and Interest Opt-Out in respect of all outstanding Take 3 Transactions and Interest Opt-Out Transactions, and we may start charging the standard interest rate on the full outstanding balance on the account and on all new transactions. We may restore the Take 3 Facility and apply Promotional Interest Rates and Interest Opt-Out to new purchases once you have corrected any breach of this agreement and are complying with it again, but we will not be obliged to do so.
13. We may from time to time allow you or offer you the option to transfer purchases or balances between the standard rate, BNPL and promotional offers.
14. In calculating the APR, no account has been taken of any variation of the interest rate which may occur under this agreement. We have the right to vary the interest rate, for commercial reasons, upon giving 30 days written notification to you.
15. Administration charges are payable by you in respect of the following matters:
• Buy Now Pay Later set up charge - £10, £15, £20, £25
• If you make a payment via Paypoint or the Post Office - £1
• If you make payment by cheque - 25p
• You fail to make at least the minimum payment by the payment due date - £12
• For any letters, telephone call or other (other than home visits) debt collection activity we undertake - £12
• Any cheque, direct debit or other item for payment into your account that is unpaid or dishonoured - £15
• Any court fees & costs incurred by us in pursuit of arrears.
We reserve the right to vary these (or introduce new charges) at any time in accordance with clause 19 of Further Terms and Conditions.
16. Missing payments could have severe consequences, such as court proceedings being taken and judgement being enforced against you. It may make obtaining credit more difficult. We may also transfer your account to a debt collection agency.

Further Terms and Conditions

17. Under the Consumer Credit Act 1974 you have the right to sue the supplier, us or both if you have received unsatisfactory goods or services paid for under this agreement costing more than £100 and less than £30,000.
18. You have the right to pay the balance of this credit agreement in full or in part under section 94 of the Consumer Credit Act 1974. If you wish to do this you must give notice to us before payment is made by contacting us on; telephone number 0800 092 3355, e-mail [email protected], or in writing to Shop Direct Finance Company Limited, Customer Support Team, Sandringham House, Sandringham Avenue, Chelmsford, CM92 1LE.
19. We reserve the right to vary the terms of this agreement at any time to reflect:-
• changes in applicable laws or regulation;
• changes to our systems;
• changes in market conditions affecting our business;
• new developments in products, technology or other changes in lending practices;
• additional, enhanced or revised product features;
• new promotional offers;
• changes in your personal circumstances;
• changes which in our view effect your credit status.
We will give you 30 days written notice of the variation, where any such change is not to your benefit. You may end this agreement by giving us notice and paying us the full outstanding balance before that change takes effect.
20. We may vary the credit limit from time to time. You may request us to increase or reduce your credit limit at any time, and we shall consider such request, but we may agree or decline at our discretion. We may at any time restrict or suspend the availability of credit to you, but would usually only do so if we believe that you may not repay the balance, suspect fraudulent use of the account or believe any events in clause 22 has or is likely to occur. You must not exceed your credit limit, and if you do so you must repay the excess to us on demand.
21. Either you or us may terminate this agreement. If you terminate the agreement, you must give at least 7 days written notice by contacting us at the address specified in details clause 18 and you must immediately pay the full outstanding balance to us. If we terminate the agreement we will give you at least 2 months notice unless an event mentioned in under clause 22 has occurred. You must repay the full outstanding balance to us on demand.
22. We may demand immediate repayment of the full outstanding balance and/or terminate the agreement and/or suspend your right to use the account if:-
• you fail to pay the minimum payment by the due date;
• you exceed your credit limit;
• you become bankrupt, enter into a voluntary arrangement or make proposals for reduced payments;
• you have provided any false or misleading information on which we have relied;
• you breach any of the terms of this agreement in a way which we reasonably believe to be material;
• we believe the account is being used fraudulently or for an illegal purpose.
If we terminate the agreement you will be liable to pay us the full outstanding balance and any other sums due to us under it. The outstanding balance for all purposes of this agreement will include all sums due on the account (current balance) together with all amounts due for payment on your account at any time in the future.
23. If you have failed to pay us any amount you owe under this agreement, we may use the money we owe you (whether under or in relation to this agreement, or in any other way) to reduce or repay the amount you owe us. This is called a right of "set off". We can use our set off right without telling you in advance.
24. We may transfer any or all of our rights, duties and obligations under this agreement, or arrange for any other person to carry them out on our behalf, without giving notice to you. Any such transfer will not effect your rights under this agreement, or any other legal rights you may have, such as under the Consumer Credit Act 1974. You may not transfer your rights, duties or obligations under this agreement.
25. This agreement is governed by the laws of England and Wales, which we also take as applying prior to the making of this agreement.
26. All communications in relation to this agreement will be in English.
27. We may put your statements and any other notices that we wish to send to you, or are required by law to send to you, such as notice of sums in arrears and notice of default sum in the Transaction History of My Account on our website (or such other secure electronic location as we may notify to you). We will send you an e-mail to let you know when we do this. You agree that you consent to receive statements and notices in this way. Statements and notices will remain in My Account for up to 12 months after posting. If you wish to obtain a copy of any statement or notice after it has been received, we may charge you for supplying it in accordance with our practice at that time. We would therefore recommend that you print off a copy and keep it secure.
28. If we temporarily relax any terms of this agreement e.g. allowing you more time to pay, we may strictly enforce those terms again at any time.
29. If any term of this agreement is unenforceable for any reason, it shall not affect the enforceability of any other term of this agreement.
30. You must notify us in writing of any change of your address within seven days of such change.
31. You have the right to withdraw from this agreement under the Consumer Credit Act 1974. This right of withdrawal ends on the expiry of fourteen calendar days beginning with the day after the agreement is concluded. You can withdraw from this agreement by contacting us as specified in clause 18.
If you intend to withdraw you must repay any credit and any accrued interest without delay and no later than 30 calendar days of giving the notice to withdraw. Upon request we can advise you of the amount of interest you will be charged per day. You must still pay for any goods you have bought under this agreement, unless you have separate right to return them, such as under a home approval guarantee or statutory distance selling rights. You should not use any goods you have purchased using credit under this agreement if you plan to return and you should keep them safe (legal action may be taken against you if you do not take proper care of them). You can make payment by contacting us as specified in clause 18 or you can go online.
32. If you are not satisfied with any aspect of this agreement then write to: Shop Direct Finance Company Limited, Customer Excellence, Sandringham House, Sandringham Avenue, Chelmsford, CM92 1LQ. If you have complained to us and we have been unable to resolve your complaint you may then refer the matter to the Financial Ombudsman Service, Exchange Tower, London, E14 9SR. Telephone 0800 023 4567 or 0300 123 9123. www.financial-ombudsman.org.uk. You can view a copy of our Complaints Procedure on the website. Following our complaints procedure does not affect your right to take legal action.
33. The regulatory authority of consumer credit agreements is the Financial Conduct Authority, 25 The North Colonnade, Canary Wharf, London E14 5HS.
34. Reference in this agreement to "you" and "your" are to the Customer named on the agreement. References to "us" and "we" are to the Creditor named above, and include any other party to whom our rights and/or liabilities under this agreement may be transferred.
35. Shop Direct Home Shopping Limited, 1st Floor, Skyways House, Speke Road, Speke, Liverpool, L70 1AB are the credit intermediary for this agreement.
36. We are required to inform you that there is a possibility that other taxes or costs may exist during the currency of this agreement that are not paid via us or charged by us under this agreement.