That's how they make their money.
They're hoping that a percentage of people who take that deal will go past the 1 year term.

Then you have to pay the full years interest , or what ever the agreement was , at 29.00% interest, or whatever you agreed to.

It's an expensive lesson that's for sure.

I'm afraid they can, and that's a common occurence with "don't pay for one year" scenarios.

Unless you can get them to forgive the interest (unlikely) you're on the hook for it and must pay it... the sooner the better because retail interest is compounding.

we took a loan $2000.00 with Citifinancial when purchased airconditioning in 2006, one year no payment. but nobody told us, that if we pay one day later, Citifinancial will charge interest in amount of almost $700. we paid full amount of 2000 in few week past date of one year. now citifinincial calling us and sending letters, asking to more than $1000 (including their interest)
Just wondering, if they can do anything, like report a bad credit, or give our case to collection agency. is our case serious?