Goods delivered before credit agreement signed

peterdoherty

Hi,

A friend of mines is in a bit of a dilema.

They recently (2 months ago) ordered a large electrical item from a large website which offers buy now pay 6 months later credit terms (after 6 months pay off the balance or take out 36 installments)

The item they ordered was not in stock at the time of ordering. They placed the order and were told the goods would be sent when they were in stock after the credit application was signed and returned to the credit company.

2 days later he got a phone call saying the credit was approved and the item in stock for immediate dispatch T.he goods arrived the next morning even before the credit agreement arrived!

He thinks that he has the item for free as he never signed and returned the agreement/direct debit mandate (or proofs they required) to able 2 buy (the credit company).

The company has his bank details on file (acc no/sort code etc) can they take the money, either all at once or in monthly installments after the 6 months?

The company (website) recently left a message on his answer machine saying if he could return the forms so they could proceed with his order or phone them if there was any problem. Do you think the company made a mistake and think the goods havent been sent?

He doesnt know whether to do the immoral thing and keep his mouth shut and possibly get the item for free or phone up the company to see whats happening.

Has he got away with it?

Jammy sod if he has!!!

rrwfotr

As the goods were most probably high priced item they will most probably have proof of delivery. Therefore if he does not pay then they could go for a action of theft or non payment.

I'm sure that he/she would filled some forms on the website to agree terms and conditions etc. I very much doubt it they will let it go as every Tom !!!!!! and Harry will try it on.....

daveboy

An additional thing to think about here, is that for something like that, a signature would have been needed when it was delivered.

If they were to take this further, that signature would act as evidence.

It seems they have made a mess of it - your friend doesn't have to sign the agreement for credit and could pay another way still. But the company will know he's got it so he'll certainly have to pay.

peterdoherty

I agree with your points but wouldnt it be the case between the comany and the credit company?

If the company informed the customer the credit was cleared then surely its the companys fault?

peterdoherty

Daveboy,

HE signed on delivery so yep there is a record of him getting the goods.

I think the best thing to do is wait til the company chases it up further. Their mistake so they should have to chase the money. He a was slightly worried that because the credit company has his bank details they could take the money from his account either in 1 lump sum or in direct debit monthly payments but I think that because the direct debit mandate was not signed & retuned the credit company cannot take the money legally.

daveboy

I would agree on letting them make the next move but your friend must be prepared to have to pay eventually.

Having a bank account number and sort code only is useless in terms of getting payment for the item. They certainly can't do it by DD as that needs the signed mandate. If they had a debit card number and expiry date then they could get something that way.

Would be interesting to know what the item was and which company it is too!

peterdoherty

Daveboy it was a 32" LCD HD TV!!!

Lucky sod!

Wouldnt want to reveal the company though.

BWZN93

With many online orders, you never actually sign an agreement (i.e - next online) and by applying and the company subsequently accepting, there is a contractual agreement whether the form was signed or not.

For him to 'keep his mouth shut' would make no difference. The items would have been couriered and signed for, so they have been accepted. In these cases - he ordered and the company accepted, they delivered as per the agreement and your friend accepted the item and has not called and asked for them to be returned. The company has even rang and asked for the forms to be returned, so he should do that!!

When you put in an order with for e.g telewest online, they do thier part of the agreement and ask you to return the contract and dd details, often this is after the installation. No court would accept his argument and would get himself into trouble.

Finally - it is morally wrong to attempt to defraud a company because he 'hasnt signed the agreement yet'.

Jo xx

EDIT: P.S - it is true they cant take money unless there is a signed dd mandate. He wil get a bill though and by trying not to pay, may have the credit agreement revoked (he hasnt done his part of the agreement) and would have to pay the full amount a lot quicker or risk a default on his credit report.

peterdoherty

Thanks Jo,

He has the money sitting waiting just incase they do ask for payment in full which I think they may do soon!

gizmoleeds

Believe it or not, what is fair and right is actually a significant part of court process. It is neither fair nor right that your friend should get to keep this TV without paying due to a possible administrative error.

As the credit agreement was never signed and your friend was told this would need to be done, he would probably have a good case for arguing that the deal should never have taken place and returning the TV. However, he cannot keep the TV and not expect to pay anything.

As you have already said, the credit company have his bank details, and they will take the necessary payments. The only was he could stop them would be by (a) closing the account (in which case the debt would probably be passed to a debt collection agency) or (b) going to court (where he doesn't really have a case).

So unfortunately, he will just have to pay for the TV like everyone else.

Malestrom

Is it just me or is there no dilema at all here? He ordered the goods, he was willing to pay for the goods at the time of ordering, so whats changed now the goods have been delivered? Just because he hasn't fulfilled his part of the contract, i.e. returning the DD mandate or paying by other means, doesn't mean he gets a free TV!

Sheesh.....