Ritz Camera Scam?

[Bill F]

I am looking for some feedback. My father purchased a $1,500 camera body from Ritz camera in Nov 2007 under a program that indicated no interest for 10 months. Apparently Ritz camera's program provides for GE money bank to finance the purchase on a credit card that is automatically set up when you sign up for this program. The Ritz Camera associate assured him it was a zero interest program not an interest deferral program. My Dad proceeded to pay the camera off in full within the 10-month period and ended up with an interest bill from GE money bank for about $250.00. My Dad has sent numerous correspondences to both Ritz Camera and GE money bank since September of 2008 with no response requesting that something be done to correct this. Since then GE money bank has charged him penalties, interest at 29.99%, and interest on penalties and interest on unpaid interest. The most recent problem is that they have reported to the credit bureaus that he is late and have indicated a charged off against him for over $450.00, yet GE money bank keeps sending him statements requesting the full amount be paid. II have currently contacted both GE money bank and Ritz camera and am getting a complete run around. Does anyone have any suggestions or has anyone had a similar experience???

Bill F

[another view]

The Ritz Camera associate assured him it was a zero interest program not an interest deferral program.

If this is the case, then I would imagine the Ritz employee either didn't understand the question or know the difference between "no" and "deferred" interest. Obviously, if "didn't understand" was the case, a decent employee should involve a manager but in reality we know what happens. And I'd suspect a lot of people don't understand the difference between the two, given the current state of life in general...

Did your father read the fine print of everything he signed? I hate to kick him while he's down, but it looks like he may have to pay this interest. If it's any consolation, he's probably in a lot better financial shape than the Ritz chain at the moment...

In the future, my advice would be that if it's 10 months, pay it off in 8 so you have a month to correct any error on the loan provider's part and still a clear statement by the end of the interest-free term. I did this once and it worked, but I won't do these deals again.

[drg]

Bill,

Contact your local Better Business Bureau for a local store issue. I if you have all the paperwork and are certain of the terms of the original 'deal' contact the Attorney General of your state.

The Ritz/Wolf chain is undergoing bankruptcy
(read more by clicking on this) which may contribute to problems you are having getting an easy resolution.

As was pointed out, there is a distinct difference in deferred and no interest plans.

With the financial issue that this chain is experiencing and that GE Finance is also going through, a negotiated deal should be easier to accomplish.

Let us know what happens and Welcome to Photography Review, even if under less than the best circumstance.

[Bill F]

In further checking, the program offers a 10 month interest program provided the principal payment is paid in full no later than the very last day of the program promo period. If you are one day late, all deferred interest and other finance charges are then charged to you. The problem is that by the time you get the final statement you don't have time to pay it by the drop dead date. Also the statements accrue the interest as you go and show balances owing with interest throughout the billing period, as to confuse the customer. It is definitely a scam. According to my Dad he was never explained the program and signed one form the the balance of the contracts were sent to him later, and are lenghty and very confusing. They also are rediculously one sided, they allow for GE Bank to convert your checks to electronically take money out of your checking account with having the cash the checks, they totally remove any rights to arbitration for disputes, they kick the interest rate to 30% if you are one day late and hit you with penalties. They charge you 10$ for each bank statement you request from them. In my mind it is a scam and 'Ritz camera knows it but will do nothing about it to change it, When I called ritz they indicated that we had to deal with GE that is was totally out of their hands and their was nothing they could do. Pretty Sad...

[another view]

They also are rediculously one sided, they allow for GE Bank to convert your checks to electronically take money out of your checking account with having the cash the checks, they totally remove any rights to arbitration for disputes, they kick the interest rate to 30% if you are one day late and hit you with penalties.

It's not just GE or Ritz. Like I said, best bet is to avoid these "deals". Credit card debt is probably a better solution, and I never recommend that (unless you can find a 0% balance transfer, charge it on one card and then transfer it to the new 0% card, but there are risks with that too).

You may be able to get somewhere trying to fight it with the BBB, etc but honestly I doubt it. GE's legal team drew up what I'm guessing is an iron-clad contract. The money they want in interest wouldn't go far with an attorney either.