Why should i pay for 36 months for 24 month device contract.

[Pavan09]

Why should I pay for 36 months for 24 month device contact, even though I don't want swap in future. Why should I pay half the amount extra, is it a scam.

 I bought a Samsung 24 ultra 512,  its actually cost £1200 in Samsung store, but in sky its £1740, I paid £156 upfront now 1584 pending.

It's a scam, they are not even giving option for customers, like they want to swap or not, directly charging 12 months extra eventhough u dont want to swap u should, so, my device price is twice the amount of retail price. Not even providing invoice of purchase if its legal. 

[caesarome]

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@Pavan09 wrote:

Why should I pay for 36 months for 24 month device contact

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It isn't a 24 month contract as Swap 24 is a 36 month contract, what the 24 part refers to is that after 24 months you have a decision to make, you can either swap for a new device or continue to pay for the last 12 months as probably a slightly reduced amount until it has been paid off in full.

[63johnw]

Hi @Pavan09  its not a scam. All the payments are given to the customers before they choose to proceed. Spreading the payments over 36 months allows for lower monthly payments which suits most customers. It's up to customers to decide what they want and are free to choose to go elsewhere if they want. 

[PandJ2020]

The credit agreement (if you actually read it) makes it crystal clear.

The purchase process also makes it clear, when selecting Swap24 it says "This is a 36-month contract. You can swap to a new phone anytime after 31 days, or from 24 months at no extra cost."

Also, "Subject to status and credit check. Swap12: 24-month interest-free loan required. Swap24: 36-month interest-free loan required."

And you can click on 'payment breakdown':

Upfront payment   £0

Months 1 to 24   £26

Months 25 to 36   £23.25

Total credit    £903

Length of agreement    36 months

It seems some only look at the monthly payment figure and don't actually read what they are signing up for.

However, in criticism, although it's 0% finance the total purchase price is sometimes higher than RRP - but as noted, nothing is hidden and you can shop around.

But to answer the headline: Because you've agreed to it.  Failing to pay will result in a credit default and recovery actions.

[TimmyBGood]

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@Pavan09 wrote:

my device price is twice the amount of retail price. 

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'retail price' is whatever a retailer can convince a customer to pay.

[PandJ2020]

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@TimmyBGood wrote:

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@Pavan09 wrote:

my device price is twice the amount of retail price. 

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'retail price' is whatever a retailer can convince a customer to pay.

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1784 isn't twice 1200 but it does seem a hefty mark up.

@Pavan09 if you are still within your cooling off period then you can return the device and cancel the contract.