Bought several items from AO.com on finance, who use New Day to provide their finance, so I bought two ovens on Buy Now Pay Later in November, then a Washing machine on 12 months 0% in March. Made payment to clear the oven balance before the 6 months was up (so as not to incur interest) in May 2021. New Day decided that they would take this payment and instead pay off the Washing machine first as, in their view, this was the 'more expensive' debt. Despite it being 12 equal payments with 0% interest. So, I now have to pay interest on the 2 ovens I bought, despite having done everything required of me as stated within the finance agreement to prevent interest being charged. Having complained, they rejected the complaint, still insisting that a 0% interest free credit agreement is, somehow, the most expensive debt and so they are correct in paying this off first. Utter shambles of a company, their helpline know nothing of credit regulations or even credit products that are available through the various retailers they work with (they don't know the difference between an instalment plan and Interest Free Credit). Even their complaints dept know the difference between an Instalment plan and a 0% Interest Instalment Plan. If they did, they would have realised the mistake and corrected it. Instead they gaslight and try to get away with charging interest that they are not entitled to. Told AO that they need to review who they use to provide their finance as it is dragging their name down too. The images attached show their mistakes. Clearly, I have 11 months left of the interest free agreement. This would have been 11 equal payments of £38.25 to clear the balance (422) withouth any interest. This clearly being the 'cheapest' debt. 0% interest free instalment plans are clearly a clearly different product to the standard instalment plan. Yet New Day don't seem to know the difference. The images show the £1350 deposited, but £420 of which is first used to clear the balance on the 0% interest free instalment plan. The rest is then used to clear the BNPL balance, so £422 left outstanding on the BNPL is then transferred to a standard (i.e. interest bearing) account.