Company I Had 'Loan' With Gone Bust

pvincent · 27 January 2010 at 7:15PM

Hi,

I have been on an IT course for the past three years. Not completed the course yet.

The loan agreement (with the training company, who provided the training as well as the loan or whatever it was) was that I would pay £4750 at a rate of 16.8%APR for ten years. So far I've been paying £76.08 every month (without fail).

To date I have paid around £3,000

Since this company is making arrangement for "insolvency" will I be refunded any of the money I have paid? I paid for a service that I have not received. They were supposed to provide me with a certain high level qualification and I am only part way (a very small part way) there.

Or does insolvency mean they are unable to pay anything to anyone?

Thanks for any info. Also do I have any sort of recourse or right to any sort of money or compensation? I feel like I've wasted £3,000.00.

I assume that payment will not be taken from February onwards? I hope so, since they are insolvent but I am really not too clued up on these sorts of matters.

pvincent · 27 January 2010 at 7:56PM

I've been looking at the finance agreement / terms of business of the insolvent business. It states the following:

"in case of all other Events of Default our liability shall be limited in aggregate to the Fee."

(Fee is the Total Price of the course which is £4,750)

But it goes on to say:

"Except in the case of an Event of Default...we shall have no liability to you...unless you shall have served notice to us of the Event of Default within 30 days" (of becoming aware of the Event of Default).

So do I have a case or not? Or does the insolvency negate all this?

jonesMUFCforever · 27 January 2010 at 7:56PM

The training side and finance side are normally completely separate.

You may find that you are still liable to pay the loan even if the training side has gone bust.
You need to contact the administrators of the training company to see where you go from here.

pvincent · 27 January 2010 at 8:58PM

Let's hope not. At the very least I want the payments to stop. Some sort of compensation would be nice too but I'm not expecting it.

Upon further reading the 'Appointed Agent' of the training company although under a different name has practically the same address (different postcode but same town, building, number of building etc).

There's also a section about my rights which reads:

"If you have received unsatisfactory goods or services then you may have the right to sue us."

Which sounds like its in my favour but I don't want to incur legal costs (if that's what it implies, which I think it does.

Anymore input?

Thanks.

nikki2804 · 27 January 2010 at 9:06PM

What IT company i it? Hoping it the one that the OH is with!

nikki2804 · 27 January 2010 at 9:12PM

jonesMUFCforever wrote: »

The training side and finance side are normally completely separate.

You may find that you are still liable to pay the loan even if the training side has gone bust.
You need to contact the administrators of the training company to see where you go from here.

Technically they have breached there contract as they are no longer providing the service which has been paid for. So even if they persue payment then I'm sure people will sue.

That said my OH has finance with them and I'm hoping that he doesn't have to pay anymore. He's never had anything from them apart from a textbook so god knows how they can persue any monies "owed"

lumsden169 · 27 January 2010 at 9:15PM

is that advent computer training by any chance? i am in the same boat

paying £90 a month for over a year on a 5 year deal, so no way i am gona pay for another 4 years.

jonesMUFCforever · 27 January 2010 at 11:20PM

The problem for you all is that you have been given a loan by a finance company which has been given to the training company upfront to educate you but they have gone bust.
The loan provider quite rightly want their money back as they have done nothing wrong - I have not seen what kind of CCA agreement you have signed but I think that you all need to seek professional help immediately.

pvincent · 27 January 2010 at 11:43PM

Yes it is Advent! I didn't want to name names

I think at least legally I/we have a case but I think the issue is can Advent afford to pay?

Also I found this online:

I can't post links but if you type FS7NEW nov07 responsible into google its the first thing that comes up.

Which seems to say that since they failed to provide the product/service we can pursue both the training provider and the finance company. Is that right?

JMH_Dorset · 27 January 2010 at 11:54PM

I just dug out all the "Student Finance Plan" paperwork... I'm fairly sure this is not a 'proper' Credit Agreement, i.e. bound by the CCA.

On the form itself, which you sign, there is no mention of the Consumer Credit Act, whatsoever.

I wish I could post links, because I'd upload scans.

There's also a couple of pages of T's & C's which mention nothing about CCA, FSA or anything - only stating that you must pay on time, that your details may be used for marketing, that they may do a credit search, the option for early repayment - nothing like you would expect from, say, a bank loan or credit card agreement.

Nevertheless, as jonesMUFCforever suggested, I will seek professional help - just to be sure.

Company I Had 'Loan' With Gone Bust

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