Watchdog - Mail order - know your rights

It's becoming more and more common for mail order companies to offer credit terms, so you can spread the cost of your PC over a couple of years, or maybe buy now, then pay later after an interest-free period. It's worth knowing that they are bound by exactly the same rules as anyone else offering you credit.

The advert must say exactly how much your credit will cost you. Companies always quote a 'headline rate' for interest, but depending on how they calculate the charges, the real cost can be a lot more. Always check the APR - annual percentage rate - as this gives a better idea of what you'll actually pay. It's illegal for companies only to sell on credit and build some profit into the credit charges - the goods must also be available if you want to pay cash.

Always read the small print, which normally includes a typical example of the overall charges. It can be frightening how much extra it costs to pay for a #1,500 PC over, say, three years.

If you buy goods on credit from a doorstep salesman, you have the right to change your mind during a 'cooling-off' period. If you buy a computer mail order, there is no such right. Once you've signed the agreement, you are bound to keep up the payments.

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