Interest-free hire purchase

Menards, number three in the US DIY retail scene, is making its customers a special offer: for a two-week period in early September, all purchases worth more than US $ 299 will incur "no interest until 2007". The customer is obliged to use Menard's own credit card for such purchases, not Mastercard or Visa. Which should result not only in boosting sales, but also in increasing customer loyalty. Minimum monthly payments are required once the credit has been approved. If the total balance has not been paid off by January 2007, an annual interest rate of 20.9 per cent will apply from the actual date of purchase. The promotional contract will be cancelled in the case of accounts not kept current, and a default interest rate of 24.9 per cent annually will apply. These high interest rates are expected to contribute to financing the promotion.