Migliaccio & Rathod LLP is investigating retailers offering “0 financing” promotions with retroactive interest converting to 30–35% interest if the balance is not cleared by the exact promotional deadline.
Reported Issues
Consumers report financing marketed as “0% interest for 6–48 months” through store cards administered by Synchrony, Bread, or similar lenders. In reality, these promotions often defer interest, which is later retro-billed at 29.99%–34.99% if the balance is not paid in full on day 180 or 365. Many consumers state they were unaware of the fee structure until a lump-sum finance charge suddenly posted to their account.
Why Consumers Should Be Concerned
If the promotional terms are presented as “0% interest” while concealing deferred-interest triggers, this may violate Truth in Lending Act (TILA) disclosure rules and state UDAP statutes governing deceptive financial practices. These misrepresentations may cause consumers to incur hundreds of dollars in undisclosed finance charges.
Signs You May Be Affected
- Accepted a “0%” store financing offer since 2019
- Were later charged 30%+ retroactive interest
- Did not receive clear written disclosure of retro-billing terms
If you experienced these issues, fill out the form below or contact [email protected] or (202) 470-3520.