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The information set out below is very important and it’s a legal requirement to give it to you with an information sheet (known as Standard European Consumer Credit Information or SECCI) before a new credit account is opened. Please read all information carefully.
If you already have a La Redoute Credit Account and are looking to upgrade, the new account will be familiar but includes our EASY3 payment option. If you upgrade, your account number will be the same and any existing account balance will simply transfer across to the new account.
If you’re thinking about opening a La Redoute Credit Account for the first time, welcome!
If you don’t already have a La Redoute Credit Account, we will search information about you held at Credit Reference Agencies to help us to decide whether to offer you an account. This will provide information about you and people to whom you are financially linked. The Credit Reference Agency will store details of this search.
Credit is mainly provided to allow you to buy goods from us. We may allow you to use it to buy from third parties but we’ll let you know. Credit cannot be used for anything else.
If you’re a new credit customer, we’ll send you a statement around 17 days after we’ve sent your first order with details of your purchases. This will include the amount of your credit limit and the amount and due date of payment required under the agreement. You can then choose how you want to pay, including our EASY3 payment option, which is explained below.
If you’re an existing customer upgrading your credit account to the new La Redoute Credit Account, you’ll continue to receive statements as normal but you’ll see that your statements include the EASY3 payment option. Statements will continue to show your credit limit and payment date and, if you have a balance transferring from your existing account, interest will be charged as normal unless you pay it off in full at your next account payment date shown on your statement.
The credit provided is known as running-account credit, which means that the agreement has no fixed duration and continues until you or we close your account.
Statements will be provided free of charge.
With the EASY3 payment option, you'll be able to spread the cost of items you purchase by making 3 equal payments over 3 months. Pay your EASY3 payments on time every month and you’ll pay no interest on new purchases you make.
You don’t have to pay the EASY3 payment each month. You can choose to pay more or less but you must pay at least the Minimum Payment shown on your statement. If you pay less than your EASY3 payment, interest will be charged in future at your account rate on items purchased that are included in that EASY3 payment and that were interest free up to that point. However, if you buy more items in future, you can use EASY3 to pay for those items interest free over 3 months.
If you pay more than your EASY3 payment or if you return items, this will reduce your future EASY3 payments.
Your statement will show a Minimum Payment and, if you have items interest free on EASY3, an EASY3 payment option. Your Minimum Payment and EASY3 payment will be shown separately on your statement but the EASY3 payment also includes your Minimum Payment so you won’t need to pay both.
You don’t have to pay the EASY3 payment each month. You can choose to pay more or less but you must make at least the Minimum Payment each month. If your balance is less than £5, then your Minimum Payment will be the full outstanding balance. Otherwise, your Minimum Payment will be the higher of: (i) £5; (ii) 5% of your outstanding balance (rounded down to the nearest pound) or (iii) all interest and fees on the current statement plus 1% of your remaining outstanding balance.
Payments are due 21 days from the date your statement was produced.
Remember that, if you only make your Minimum Payment each month, it will take longer and cost more to pay off your balance. You have the right to repay your balance early at any time in full or in part so you can always choose to pay more. If you wish to do so, you should contact us. You can also reduce or cap your credit limit to help to manage your account and your finances more generally.
The rate of interest charged on any interest-bearing balances is 34.1% a year and is variable. This rate of interest is a flat rate. This means it does not take into account the fact that the amount you have borrowed will reduce over the year if you keep to the terms of this agreement. The fact that the rate is “variable” means that it is not fixed and can change from time to time under your credit agreement. Based on the current rate, the Annual Percentage Rate (APR) is 39.9%. In calculating the APR, we assumed the rate of interest will stay the same (even though we can change it) and you will keep to all the terms of this agreement. The APR is there to allow you to compare the cost of this product to other products.
We calculate and charge interest on the opening balance on the statement date each month (minus any returns and other adjustments from items bought in previous statement periods) and interest is charged to accounts on the statement date. If you clear your balance in full and on time each month, no interest will be charged the following month.
If you do not make at least the Minimum Payment by the due date, we will apply a late payment fee of £12 to your account. A £12 fee will also be added if we issue further payment reminder letters, if any method you use to make payment is not honoured, if we transfer your account for debt collection or if we have issued you with a default notice. Interest will be added to these fees at the normal rate of interest under the account, which is currently 34.1% a year. Interest will continue to be added to any overdue amount, interest and fees at the contractual rate until they are paid in full.
We record details of your payment history, including details of missed payments and defaults, with Credit Reference Agencies. This information stays on your credit file for 6 years and is used by other lenders to help them to decide whether or not to offer credit to an individual. Missing payments could have severe consequences and may make it more difficult for you to obtain credit in the future.
We may also bring legal proceedings and seek the costs of doing so from you.
As explained below, you have an initial short-term right to withdraw from the agreement but, after that period ends, you can still close your account and pay off your balance at any time.
You may withdraw from this agreement without having to give a reason within 15 days. The 15 days starts on the later of the day the agreement is made or the day you receive a copy of your credit agreement or written notification that it has been executed or the day on which we tell you of your credit limit.
To withdraw from the agreement, you must tell us in one of the following ways:
If you withdraw from the agreement, you must repay any outstanding balance without delay and no later than 30 calendar days after you give notice of your withdrawal. Interest is payable on the outstanding balance at a rate of 34.1% a year. We will tell you on request, without delay, of the amount of interest if you draw down credit before and/or during the 15-day withdrawal period. Details of how to make payments are provided on your statement.
If you do not withdraw, you’ll continue to be bound by all of its terms.
After the 15 day withdrawal period, you can still close your account at any time and there is no need to give us notice. All you would need to do is contact us using the contact details above and repay your outstanding balance in full.
As you have used the account to purchase goods, you own them and must still pay for them.
If you need further information or an additional explanation of how the La Redoute Credit Account works, please contact us using any of the above methods.
The terms and conditions that apply to your account are set out below. They are full of important information, including our promises to you and your promises to us. Please read them carefully and keep a copy safe so you can look at them later if you need to.
Credit Agreement regulated by the Consumer Credit Act 1974
This is an agreement between us, LRUK (Retail) Limited trading as La Redoute, of 2 Holdsworth Street, Bradford, West Yorkshire, BD1 4AH, and you:
References in this agreement to “we” or “us” are initially to LRUK (Retail) Limited and include any other party to whom any rights and duties are transferred under clause 7 below.
The credit provided under this agreement is known as “running-account” credit, which means that the agreement has no fixed duration and continues until you or we close your account under clause 5 below. Your credit limit can change (see clause 2 below for more information).
Credit is provided by us to you.
By applying for this agreement, you consent to us performing a credit search. For more information about credit searches and how we use your data, please see clause 10 below.
Credit is mainly provided by us to you to allow you to buy goods from us. If we tell you before you agree to buy goods or services from third parties, we may also agree you can use the credit to buy those goods or services. You cannot use the credit for any other purpose. The value of goods and services you buy will be deducted from the available credit and we will debit your account each time you authorise us to do so if you have enough available credit.
If, with our agreement, you use credit to buy goods or services from a third-party costing more than £100 and not more than £30,000, and you have a claim against the third party for misrepresentation or breaking the terms of any contract you have with the third party, you may bring the same claim against us under Section 75(1) of the Consumer Credit Act 1974.
You will receive an initial credit limit, which will be shown on your first credit account statement. Your first statement will be issued to you around 17 days after we have sent your first delivery to you. We then send you statements each month where there has been activity on your account (e.g. purchases, returns, interest). Under clause 9, statements may be delivered or made available to you electronically but, if you ask us to do so, we will send them to you by post.
You can ask us to increase your credit limit at any time. While we will consider requests, we are not required to increase your limit. Similarly, to help you to manage your borrowing, you can ask us to reduce your credit limit at any time and we will do so. However, if your account balance at the time is more than the proposed reduced limit, you will need to reduce your balance so that it is no more than the reduced limit.
We may decide to change your limit from time to time but we will give you at least 30 days’ notice if we decide to increase your limit (unless you asked us to do so). You may decide you do not want to receive credit limit increases so, for example, you can limit your borrowing to a certain amount. If you do not wish to receive limit increases, please let us know and we will make a note on your account.
Your monthly statements will show the credit you have borrowed and the amount of credit available to spend.
The rate of interest is 34.1% a year and is variable. This rate of interest is a flat rate. This means it does not take into account the fact that the amount you have borrowed will reduce over the year if you keep to the terms of this agreement. The fact that the rate is “variable” means that it is not fixed and can change from time to time under clause 6 below. Based on the current rate, the Annual Percentage Rate (APR) is 39.9%. In calculating the APR, we assumed the rate of interest will stay the same (even though we can change it) and you will keep to all the terms of this agreement. To calculate the APR, we have used the formula set out in rules made by the Financial Conduct Authority. The APR is there to allow you to compare the cost of this product to other products.
As a typical example, if you buy and keep £500 worth of goods at the start of this credit agreement and repay that amount in equal monthly instalments over a year at the standard interest rate above (34.1% a year), the total amount payable would be £597.16. This assumes that no further purchases are made and you and we keep to the terms of this agreement. The APR is 39.9% variable and has been calculated on the basis set out in this clause 3 and ignoring any change to the interest rate that could be made under clause 6.
If interest is payable in a statement period, the minimum interest charged will be £0.50.
Your account includes our EASY3 payment option where you can buy items without paying any interest if each month you pay at least your EASY3 payment. Your EASY3 payment will be included on your monthly statements.
With our EASY3 option, everything you buy in a one month statement period is split evenly across 3 months. For example:
In this example, if you pay less than your EASY3 payment (£30, £50 or £20 in the above example) in the relevant month, EASY3 would no longer apply to the purchases covered by those payments and you would start to pay interest (currently 34.1% a year variable) until those items are paid for in full. Those items would form part of your interest-bearing balance.
If, using the same example above, you were to buy another £60 of items in May, you could still use EASY3 to pay for those items interest free over 3 months by paying at least your EASY3 payment in June, July and August. The EASY3 payments shown on those statements would include payments towards the interest-bearing part of your balance.
If you pay more than your EASY3 payment or if you return items, this will reduce your future EASY3 payments. If you buy more items, this will increase your future EASY3 payments. Other adjustments may also be made for items you buy which can affect your future EASY3 payments.
In summary, your EASY3 payment will be calculated as the total of:
Your EASY3 payment will only be less than £5 if your total outstanding balance is less than £5. Your EASY3 payment would then be your total outstanding balance.
If you do not have any balances outstanding on EASY3, then there will not be an EASY3 payment applicable.
We may remove the EASY3 payment option from your account at any time but, if we decide to do so, we will tell you before we remove it. EASY3 will not apply to purchases you make after the date we tell you we have removed the EASY3 payment option but this does not affect anything you bought before we told you.
We may also exclude items from EASY3 from time to time but we will make sure this is clear when you buy them. Purchases covered by EASY3 will be charged to your account when the products are sent to you.
Your monthly statement will show an EASY3 payment if applicable. If each month you always pay your EASY3 payment on time, you will not pay any interest on your EASY3 purchases. If you do not pay at least your EASY3 payment in a month, EASY3 would no longer apply to the purchases covered by that payment and you would start to pay interest (currently 34.1% a year variable) until those items are paid for in full. Interest would be calculated on the opening balance at the standard rate and applied to your account each month.
If you do not pay your EASY3 payment on time, you may still be able to make future interest free purchases using EASY3 (but your EASY3 payment may include a payment towards your interest-bearing balance).
If you have any questions about EASY3, please contact us:
We may from time to time advertise BNPL offers where we delay charging items bought to your account until a later date specified in our offer. For example, we might say in July 2017, “buy by the end of July and pay in January 2018”. Items ordered in July would not be charged to your account until January 2018 and, if you paid at least your EASY3 payment from January, you would not pay any interest on those July 2017 purchases.
So, any BNPL purchases you make will be charged to your account on the date advertised and will be included on the first statement you receive after that date. No interest will be added to the cost of those items in the meantime and you will not be expected to make payments before that statement (subject to clause 5.4 below and so long as you keep to the terms of this agreement).
BNPL purchases will, however, count towards your credit limit from the time when you place your order with the amount of available credit being reduced by the total price of the goods bought using a BNPL purchase.
If you do not keep to the terms of this agreement, we may remove EASY3 and BNPL from your account for all previous transactions covered by EASY3 and BNPL and we may start to charge interest at the standard rate on your full outstanding balance and on all new transactions. If you correct any failure to keep to the terms of this agreement, we may add EASY3 and BNPL back to your account for future purchases but we are not required to do so.
We will tell you the amount of your Minimum Payment in each statement we send to you. You must always pay at least your Minimum Payment each month. If you have balances outstanding on EASY3, your statement will also include your EASY3 payment (which includes the Minimum Payment). If you always pay each of your EASY3 payments in full and on time, you will not pay any interest for those purchases. You do not have to pay the EASY3 payment shown but, if you do not pay at least this amount, we will charge you interest on those EASY3 purchases.
Your Minimum Payment is calculated as follows:
We may, however, set different amounts as part of any repayment plan agreed with you under clause 8 below.
Your monthly payment will be due 21 days from the date your statement was produced or such later date as we may allow. Your statement will show you the Minimum Payment that is due and will also show your EASY3 payment (if applicable).
Please remember that, if you only make your Minimum Payment each month, it will take longer and cost more to pay off your balance. You have the right to repay your balance early at any time in full or in part so you can always choose to pay more. If you wish to do so, you should contact us in one of the ways set out in clause 5.1 below. You can also reduce or cap your credit limit to help to manage your account and your finances more generally (see clause 2 above).
Payments you make under this agreement will be used in a certain order depending on the amount you pay. We may change this order for specific promotions and, if we do so, we will tell you when we give you details of the promotion. If a balance is transferred from a previous La Redoute credit account to this agreement, we will also charge interest on that balance unless we agree otherwise with you. If interest can be charged on a balance, we call it an "interest-bearing balance".
Your payments will be applied in the following order:
(a) If there is an EASY3 payment shown on your statement, and none of your balance is interest-bearing, your payment will be applied as follows:
(b) If there is an EASY3 payment shown on your statement, and part of your balance is interest-bearing, your payment will be applied as follows:
Because you have paid less than the EASY3 payment shown, all of your balance will become interest-bearing. However, as explained in clause 3.3 above, if you were to buy more items in future, you could use EASY3 to pay for those items interest free over 3 months by paying at least your EASY3 payment each month.
(c) If there is no EASY3 payment shown on your statement, your payment will be applied as follows:
Payments towards non-interest-bearing balances will be applied to the items in the month you bought them first (e.g. if your non-interest-bearing balance includes an item bought in January and an item bought in February, your payment will be allocated towards the item bought in January first).
The following service fees apply to your account:
We reserve the right to change any of the above fees at any time under clause 6 below.
Missing payments could have severe consequences. Details of missed or late payments will be recorded at Credit Reference Agencies which may make it more difficult for you to obtain credit in the future. We may also bring legal proceedings and seek the costs of doing so from you (see clause 5.5 of this agreement).
If we owe you money, we may use it to reduce the balance owed to us.
If you think someone has accessed your account details without your permission, or your account may have been misused, you must contact us as soon as possible. We will then suspend the account. We may pass any information to the police.
As explained below in this clause 5.1, you have an initial short-term right to withdraw from this agreement but, after that period ends, you can still close your account and pay off your balance at any time under clause 5.2 below.
Your short-term right to withdraw is a right to withdraw from this agreement without having to give a reason within 15 days. The 15 days starts on the later of the day the agreement is made or the day you receive a copy of your credit agreement or written notification that it has been executed or the day on which we tell you of your credit limit. To withdraw from the agreement, you must tell us in one of the following ways:
After the 15-day withdrawal period, you can still close your account at any time and there is no need to give us notice. All you would need to do is contact us using the contact details in clause 5.1 above and repay your outstanding balance in full. As you have used the account to purchase goods, you own them and must still pay for them.
You have the right to repay in full or in part under the Consumer Credit Act 1974. To exercise this right, you can contact us by telephone, by email or in writing saying you want to repay in full or in part.
We may restrict, suspend or end your ability to borrow more under this agreement if we reasonably consider it is necessary to do so for any of the following reasons:
If we refuse a transaction and you are unsure why, you are welcome to contact us.
Unless we need to close your account immediately or on shorter notice, we will give you at least 2 months’ written notice before doing so. We may close your account and require immediate repayment (after we have given you any notice we need to give you by law) of your total outstanding balance in any of the following circumstances:
We will comply with any legal requirements before we close your account. Please note that this agreement will continue until you have paid everything you owe, including amounts added to your account after notice to close is given.
If we close your account because of non-payment or arrears, we may take legal proceedings to recover the amount due under this agreement. If we do so, we may also seek to recover the costs and fees incurred in doing so from you.
We may change your interest rate (including making changes to the way we charge interest) for any of the following reasons:
Any change that we make will be reasonably proportionate to the effect the change has on us. We will not change or introduce any fees to cover the same cost twice.
We will tell you about any changes under this clause 6.1 (including when they will apply) either by including a message in your monthly statement or by sending you a separate written notice by post, email, text message or any other written communication. We will give you at least 30 days’ notice unless we reduce your interest rate in which case we may give you less notice.
If you decide that you want to close your account after these changes take place, you will need to contact us to let us know.
If we give you notice of an increase in your interest rate, you will have at least 30 days to tell us if you do not want to accept the change and instead you wish to pay off your balance at the existing rate. However, if you do so, you will not be able to place further orders on your account without our agreement and any further orders would be subject to the increased rate, which would also then apply to your entire interest-bearing account balance. Remember that you can repay the balance on your account in full at any time.
We may make changes to the terms and conditions of this agreement (including fees) for any of the following reasons:
We will tell you about any changes under this clause 6.2 either by including a message in your monthly statement or by sending you a separate written notice by post, email, text message or any other written communication. We will give you at least 30 days’ notice unless the change is to your advantage, in which case we may give you less notice.
If we make any changes under this clause 6.2, we will let you know when the changes will apply to your account. If you decide that you want to close your account after these changes take place, you will need to contact us to let us know. The changes will still apply until the agreement ends.
We may withdraw EASY3 or BNPL at any time and we refer you to clauses 3.3 and 3.5 above.
We may transfer to any other person any or all of our rights and duties under this agreement at any time (including our duty to lend to you). We may do this without telling you first. Your rights under this agreement and your legal rights (including those under the Consumer Credit Act 1974) will not be affected. You cannot transfer your rights or duties to anyone else.
From time to time we may decide not to apply certain conditions of this agreement. For example, if there are exceptional circumstances, which explain why your payment is late, we may, at our discretion, waive the late payment fee payable under clause 3.8 above. This does not mean that the condition, which we have waived, no longer applies to the agreement (and we will still have those rights). For the avoidance of doubt, we always reserve the right to apply every condition of the agreement.
Where we, at our discretion, allow you to enter into a temporary repayment plan with us, which allows you to make minimum monthly payments of a set amount (instead of the payments due under clause 3.6 above), then these payments will be the amounts due under this agreement until we tell you otherwise. If you fail to make any payment due under the repayment plan in full at any time, the repayment plan will end and the normal Minimum Payment calculation as set out in clause 3.6 above will apply.
You agree that, if we wish to do so, we may deliver statements, notices and documents (including notices of sums in arrears and notices of default sums) to you using our website or other similar secure electronic means (including to any email address you give us). We will send you an email or text message to let you know when we do this. We recommend that you print and keep copies of statements and notices for your records. If you prefer to receive documents by post, let us know and we will send them to you by post.
Credit providers like us (e.g. credit and store card providers) want to be confident customers will be able to repay credit provided. To help with this, we may look at information held by Credit Reference Agencies (e.g. Equifax, CallCredit and Experian), including publicly held data (e.g. Electoral Register, county court judgments, bankruptcy and other insolvency data) and privately held data (e.g. details of how you have managed other financial commitments such as other credit products, mobile phone contracts and utility bills). You agree to us performing credit searches as follows:
If we perform a search under (a) above, the Credit Reference Agency will record the search whether or not credit is granted and information they provide to us may include details of people “financially linked” to you and your “associates”, e.g. someone who has a joint credit with you. Other lenders searching your credit file to make lending decisions will be able to see our search on your file.
In addition to Credit Reference Agency data, we use our own credit scoring methods and processes to assess applications, make decisions and verify identities. We also work closely with former group companies, Vertbaudet and Daxon, and we may check their records for customer identification and to try to detect and prevent fraud.
If you would like details of the Credit Reference Agencies we work with, please contact us using the contact details in clause 5.1 above.
If we enter into this agreement with you, we will supply details of the agreement to Credit Reference Agencies and we will also send them other details of your account and how you manage it. If you do not pay amounts due on time and in full, we will tell the Credit Reference Agencies and they will record details on your credit file. That information will be seen by other organisations carrying out searches and may be used by them to make decisions about whether or not to lend to you or those individuals who are “financially linked” or “associated” with you. Information may also be used for debt tracing and prevention of money laundering.
We, Credit Reference Agencies and fraud prevention agencies may also use records for statistical analysis about credit and fraud and we may pass information to financial and other organisations involved in fraud prevention to protect ourselves and our customers. If you give false or inaccurate information and we suspect fraud, we will record this.
Please note that your consent is not needed to do this. Sharing information with Credit Reference Agencies is carried out on the basis of “legitimate interests” under data protection laws.
As is normal for organisations like us these days, we use reputable third party suppliers from time to time for a range of services (e.g. statement printing and mailing, parcel delivery, customer contact centre services, debt collection) and we may need to share your information with our suppliers (e.g. sharing name, address and account details with statement printers).
It is very important that you continue to receive information from us about your account, including your monthly statements. If you change address without telling us, we may continue to send monthly statements to your old address, which may mean a third party you do not necessarily know will receive your personal information. You may also forget to make payments and this could affect your credit rating and your ability to obtain credit in future.
You must tell us about changes to your details (including address) within 7 days of becoming aware they will change. If you have provided an email address and you receive information, statements or notices about this agreement by email, you must tell us of changes to your email address so you continue to receive that correspondence from us.
Our regulatory authority is the Financial Conduct Authority of 25 The North Colonnade, Canary Wharf, London E14 5HS. LRUK (Retail) Limited, trading as La Redoute, is authorised and regulated by the Financial Conduct Authority. Our firm reference number is 312583. Our company registration number is 110433.
If you have a complaint about us, which we cannot resolve with you, you have the right to complain to the Financial Ombudsman Service (www.financial-ombudsman.org.uk). The Financial Ombudsman Service can be contacted by post at the Financial Ombudsman Service, Exchange Tower, London E14 9SR or by telephone on 0800 023 4567 or 0300 123 9123. However, you must raise any complaint with us first. You can complain using any of the contact details shown in clause 5.1 but please direct your complaint to the Financial Services Complaints Department.
You also have the right to refer any complaint to the Online Dispute Resolution (“ODR”) platform and can do so by using the following website: http://ec.europa.eu/odr.
As we are a UK financial services business, the ODR will still refer you to the Financial Ombudsman Service as the alternative dispute resolution body. The Financial Ombudsman Service will refer you back to our complaints process unless you’ve already been through this. If you use the ODR, please give the following email address as our contact address: firstname.lastname@example.org.
English law applies to this agreement (unless you live in Scotland where Scottish law will apply, or Northern Ireland where Northern Irish law will apply) and all communications with you about this agreement will be in the English language. The English courts will determine any dispute unless you are resident in Scotland or Northern Ireland. If you are resident in Scotland or Northern Ireland, then the Courts of the country in which you are resident will determine any dispute.