Be careful using Future Shop's financing

[jesuschrist]

My mortgage for my property is up for renewal after a 5 year term, and I thought I would take the chance to get it out of the Royal Bank's grubby hands and into another institution with competitive rates. So while doing that at another institution, I got a credit bureau report stating that there is a flag on my rating dating back 7 years ago (the purchase was 7 years ago), but posted to the credit bureau 4 years ago.

I was shocked to hear anything like this, and upon further investigation it turned out that it was for a laptop I financed through Future Shop for 0% interest 1 year term. I had paid the full amount out, month by month as per the contract (something like $150 a month), all on time as I have always done, and I had no reason to think anything was amiss.

Turns out it had gone to a collection agency, for the entire amount, and posted to the credit bureau 4 years ago. Because I thought there was nothing wrong when I paid each payment, I didn't bother keeping the receipts when it was all said and done. I never heard a thing from Future Shop or any collection agency.

Regardless of having paid on time the full amount to Future Shop, they nevertheless thought I didn't pay a dime and sent it off to collections anyways. Now I have to follow up with the collection agency and set my credit rating back on track.

Just thought I'd give a heads up. I always suspected Future Shop to be shady scum bags, now I know for sure.

 

[twoblues]

On the other hand, I have never had a problem with their financing service (other than using it too much ). Mistakes happen at any company.

 

[bigguy]

KEEPING RECORDS!

In spite of the effort to systematically retain records (payments plus the original transaction document(s)) of any "significant" transaction, there is no other way to absolutely prove details of what occured. This should be a lesson for all perbies who fail to do so. Of course, in the Good Old Days, ALL bank cheques were returned to the account holder with the monthly statement. That was at least the material then readily accessible so you have the grounds to prove payment. Technological advances are mostly gains, but this problem is one of the losses.

Maybe the issuing bank will provide you with a copy of the monthly statements that would at least confirm you made the $120monthly payments over the period you claim. At a cost, of course!

bigguy

 

[wilde]

A lot of holes in that story. 1) Unless you paid cash you should have proof of payment, old bank statements and cancelled cheques should be available on micro-film for a charge. 2) They put it to a collection agency and nobody tried to contact you? 3) Don't you get some kind of statements showing you your payments and balance outstanding?

 

[twoblues]

I had a horrible experience with them involving a warranty.

Dear God, I'll grant you that their warranty process is atrocious! I don't know anyone who has had a good experience with it. Though, I did have the pleasure a few years back of being a real pest to them until they fixed a laptop that was clearly still under their warranty.

 

[jesuschrist]

A lot of holes in that story. 1) Unless you paid cash you should have proof of payment, old bank statements and cancelled cheques should be available on micro-film for a charge. 2) They put it to a collection agency and nobody tried to contact you? 3) Don't you get some kind of statements showing you your payments and balance outstanding?

1) I paid cash sometimes, I paid with my debit card most times, as I usually do.
2) Yes, I've never been contacted by any collections agency.
3) Yes, I had receipts, the operative word is HAD - and that was many years ago, but I got rid of them because I thought nothing was amiss.

 

[wilde]

1) I paid cash sometimes, I paid with my debit card most times, as I usually do.

Did you ever paid by cheque or by bank transfer or internet banking or in branch payment (ie something with a paper trail)? How does one make a loan payment using debit card?

3) Yes, I had receipts, the operative word is HAD - and that was many years ago, but I got rid of them because I thought nothing was amiss.

Then I fail to understand how it is that you made full payments and they never credited them into you loan account which is what I think the problem lies. Did you get receipts or statements? A receipt sometimes only shows the payment but a statement will show that the payment has been credited to your account.

 

[tokugawa]

It became that a particular manager hated me, she would see me come in hoping that she wasn't there and she'd run across the store saying "I've already dealt with her"
After my friend fixed it I made a point of going back to tell the other managers about my experience and their reply was that basically they knew and that she's the store manager and that she's a complete chunt but there's nothing they could do about it.

Which Future Shop location was this?

 

[Sleepmonger]

My mortgage for my property is up for renewal after a 5 year term, and I thought I would take the chance to get it out of the Royal Bank's grubby hands and into another institution with competitive rates. So while doing that at another institution, I got a credit bureau report stating that there is a flag on my rating dating back 7 years ago (the purchase was 7 years ago), but posted to the credit bureau 4 years ago.

I was shocked to hear anything like this, and upon further investigation it turned out that it was for a laptop I financed through Future Shop for 0% interest 1 year term. I had paid the full amount out, month by month as per the contract (something like $150 a month), all on time as I have always done, and I had no reason to think anything was amiss.

Turns out it had gone to a collection agency, for the entire amount, and posted to the credit bureau 4 years ago. Because I thought there was nothing wrong when I paid each payment, I didn't bother keeping the receipts when it was all said and done. I never heard a thing from Future Shop or any collection agency.

Regardless of having paid on time the full amount to Future Shop, they nevertheless thought I didn't pay a dime and sent it off to collections anyways. Now I have to follow up with the collection agency and set my credit rating back on track.

Just thought I'd give a heads up. I always suspected Future Shop to be shady scum bags, now I know for sure.

Oddly enough something very similar happened to me. I financed a desktop computer from them a good 13 or 14 years ago. Halfway into the financing the creditor sold the account to a third party and I wasn’t notified. I kept making payments to the original creditor (of course they never complained) and the third party ended up sending my account to collections. I also found out about it during a mortgage application, near what should have been the end of my payments.

Luckily in my case the bank still had my records of payment so it wasn’t a major issue.

Has future shop switched to doing their own financing? Or do they still rely on third parties?

 

[jesuschrist]

Did you ever paid by cheque or by bank transfer or internet banking or in branch payment (ie something with a paper trail)? How does one make a loan payment using debit card?

By going downstairs from the condo where I lived, in Metrotown, and paying Future Shop which was literally steps from my front door, at the service counter.

Then I fail to understand how it is that you made full payments and they never credited them into you loan account which is what I think the problem lies. Did you get receipts or statements? A receipt sometimes only shows the payment but a statement will show that the payment has been credited to your account.

I got a receipt every time I paid. I got statement at the end. I threw all those away after everything was paid off and several months had passed. It's been many years now and I have never heard from them or any collection agency. This is why I am so surprised.

 

[wilde]

If you paid by debit card then you have a paper trail, contact your bank and be prepared to pay some bank charges for fishing those out of micro-film. Then contact the credit bureau and challenge that note in your file in writing with the evidence from the bank. Hopefully, that will increase your credit rating from Greece status to a C+.