Several merchants promote “no fees or interest,” “buy now and pay in 12 months” or “pay in 24 equal monthly instalments” offers.

Are you taking up such an offer, for example to purchase furniture? You are probably receiving a loan of money extended from a credit card. Merchants often require that you pay the taxes at the beginning. The statement of account for this loan usually appears on your credit card statement. The section on money loans provides all the information on this type of loan: contents of the contract, cancellation terms, etc.

Fees that apply after the “no fees” period

Have you been led to believe that you would be granted a grace period "at 0% financing," during which you would not pay any credit charges? Such a claim must clearly specify the credit rate that will apply once that period is over, if you have not reimbursed everything in full by then.

Taking advantage of “no payments before...” offers

Such offers may be to your advantage if you pay off the invoice in full by the scheduled due date; otherwise, interest will apply at the rate set by the financial institution with which the merchant does business. This rate is often high, and can sometimes be even higher than the interest rates charged by the major credit cards.

Taking advantage of “no fees or interest” offers

If you pay for your purchase up front rather than agree to this type of financing, you can often get a discount from the merchant.

In order to offer this type of financing, merchants themselves do business with a credit institution that charges fees. Merchants include those fees in their pricing. By paying up front, you are saving the merchant money.


Last update : August 31, 2020

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The information contained on this page is presented in simple terms to make it easier to understand. It does not replace the texts of the laws and regulations.