Black Friday is probably going to turn into Bleak Friday for some credit users at Oregon retailers. 

“When it Comes to West Coast Furniture Stores, We Have the Best Prices in Home Furniture,” Mor Furniture says on its website. On Nov. 26, the site is highlighting: “IN-STORE ONLY. No interest with equal monthly payments for 61 months on purchases of $6000 or more made with your Mor Furniture credit card. Equal monthly payments required for 61 months. Learn more.”

If you’re not careful, it could be a costly trap

Let’s say you buy furniture that costs $6,800. The monthly payment due for 61 months, Mor told me, would be $112.00.  BUT, if you still owe any of the $6800 at the end of the 61 months, even $1, Mor Furniture will charge you interest on the full $6800 at a 35.99% rate starting from the purchase date. 

Do the math. The total interest on an amortized $6800 loan paid off in 61 months at an annual interest rate of 35.99% would be approximately $7,422.39, more than the cost of the furniture itself.  In other words, that furniture will cost you $6,800 + $7,422.39, a total of $14,222.

Shop at Key Home Furnishings and you will encounter the same problem if you don’t pay off your entire purchase price in the time required. “No interest will be charged on the promo balance if you pay it off, in full, within the promo period.,” Key says. “If you do not, interest will be charged on the promo balance from the purchase date. The promo balance is equal to the promo purchase amount and any related optional debt cancellation fees. “

Wayfair credit card financing also offers 0% interest options for a set period (e.g., 6, 12, or 24 months) on qualifying purchases, but if you don’t pay the balance in full before the promotional period ends, you will be charged retroactive interest on the entire original purchase amount at a high APR. 

A perceptive consumer observed on Reddit, “One really has to study a business structure. They aren’t furniture dealers first, they are credit companies first, predatory lenders that have attached a tangible item or service to their scheme.”

It’s worth noting that deferred financial schemes are not restricted to furniture stores. Numerous other retailers offer it, too. 

For example, Car Toys, a specialty car audio and mobile electronics retailer, promotes “No interest if paid in full within promotional period” but “Interest will be charged to your account from the purchase date if their purchase balance is not paid in full within the promotional period.”

Window company Renewal by Andersen can trap consumers, too. NO MONEY DOWN, NO MONTHLY PAYMENTS, NO INTEREST FOR 12 MONTHS* its website says. Then it adds, “*Interest is billed during promo period but will be waived if the amount financed is paid in full before promo period expires.’

Anybody can be caught in these credit schemes, but the people most likely to be vulnerable are consumers with lower credit scores who suffer a job loss or medical emergency that makes it hard to pay off the balance, triggering the retroactive interest charge. 

The now beleaguered federal Consumer Finance Protection Bureau cautions all consumers to know the difference between zero interest and deferred interest, because the differences can have big effects on your wallet.

A zero percent interest promotion will not add interest based on the balance of your purchase during the promotional period. If you still have an unpaid balance when the promotional period is over, you will start to pay interest on the remaining balance only from the date the promotional period ends. 

In contrast, some retailers offer financing such as “No interest if paid in full in 12 months.” That’s when you need to be wary because it usually means the promotion is a deferred interest offer. 

Caveat emptor.