Credit Agreement signed no goods received. Company has gone into liquidation!

caztastic_2

My husband recently signed a credit agreement to finance the purchase of a moped but a week later the supplier (shop) went into liquidation and we never received the goods. The finance company still want us to pay as they have already paid the supplier. We are trying to get them to cancel the agreement by holding them jointly and severally liable for breach of contract but they do not want to back down at the moment. I just wondered if anyone has had any experience of this in the past and what was the outcome.

Any advice greatly appreciated!!

Caroline

~Brock~

You have no liability to the lender because the supplier has clearly failed to complete the contract. You are covered under Section 75 of the consumer credit act, and there is no defence for them in a case like this - they either supply you with the moped themselves or alternatively cancel the loan. Simples!

It is a shame that such a clear open and shut case is being disputed by the lender. Contact your local Trading Standards Department and see if they can make them see the error of their ways.

caztastic_2

Thanks for that. Yes that's what we have been advised by Trading Standards and that's what we have told Blackhorse but they seem very reluctant to cancel the agreement at the moment. It's been dragging on since the beginning of June now and I'm getting anxious that they will force us to pay.

PNPSUKNET

Blackhorse are not what you call bright sparks, dont deal over the phone always in writting and go through their complaints process.

damoandclaire

if theyre being that fussy over it, cease any contact over the telephone and write to them(recorded delivery etc) explaining the section of the CCA that covers you (may even be a template on here) and that you won't be entertaining their request.

if it went to court, which I doubt, then you should beat them hands down. Don't pay anything to them. Stand your ground, don't let them bully you. FSA might be good people to talk to also and tell them you're doing that.

jonesMUFCforever

I don't want to burst OP's bubble but I don't accept that he might have a claim against the lender - the retailer yes - but IMO should get help from CAB or their like to look into this.

How many posts have there been on here primarily for people saying that home learning courses are no good etc but the finance is still payable.

I hope I am wrong for OP's sake.

I_know_my_ABC_and_my_CMYK

jonesMUFCforever wrote: »

I don't want to burst OP's bubble but I don't accept that he might have a claim against the lender - the retailer yes - but IMO should get help from CAB or their like to look into this.

How many posts have there been on here primarily for people saying that home learning courses are no good etc but the finance is still payable.

I hope I am wrong for OP's sake.

Even though TS have actually said the same?

caztastic_2

I have only been dealing with Blackhorse in writing. Have kept copies of all the letters. Have written to them in the last few days saying that I do not accept their decision saying they won't cancel the agreement and explaining why. Trading statndards said we have no claim from the supplier but can hold the finance co. liable but may have to go to court. Hopefully it will not come to that. We are not going to make any payments to them in the meantime but I'm worried that will affect our credit record!!
Also I have been informed that the supplier tried to cancel the agreement with them because he knew he was going to go into liquidation. Blackhorse told him it was too late to cancel but it wasn't. I was informed by the liquidators that the money could have been recalled from the bank up to three days after the supplier tried to cancel the agreement.

I have informed Blackhorse of this but they have not adressed this issue yet even though I have brought it up in two of the letters I have sent them.

I think I have a pretty good case but if they still refuse I will go to the Ombudsman. Has anyone had experience of this process before?

I_know_my_ABC_and_my_CMYK

Must be terrible to be in this position, I should imagine we will start to see allot more of this happening unfortunately.

I really hope you get this sorted, stick to your guns.

caztastic_2

Update on my situation.
I have just received a reply from Black Horse finance and after considering my complaint further and referring it to their legal department they have finally agreed to cancel the credit agreement. Much to our relief!! It took them three and a half weeks to reply to my latest letter and we were beginning to get worried!. They stated in their letter that they are cancelling it as a gesture of goodwill and admitting no liability that they have done anything wrong. They say they will try to recover their losses from the administartors and will remove any adverse from our credit file. I will of course be checking that this is the case!! I have to say that if I were to enter into a credit agreement for anything in the future it will definitely not be with Black Horse Finance as their customer service has been awful.

I am please with the outcome but it has taken us three months to get to this point!!

~Brock~

caztastic wrote: »

Update on my situation.
I have just received a reply from Black Horse finance and after considering my complaint further and referring it to their legal department they have finally agreed to cancel the credit agreement. Much to our relief!! It took them three and a half weeks to reply to my latest letter and we were beginning to get worried!. They stated in their letter that they are cancelling it as a gesture of goodwill and admitting no liability that they have done anything wrong. They say they will try to recover their losses from the administartors and will remove any adverse from our credit file. I will of course be checking that this is the case!! I have to say that if I were to enter into a credit agreement for anything in the future it will definitely not be with Black Horse Finance as their customer service has been awful.

I am please with the outcome but it has taken us three months to get to this point!!

Nobody was saying that they had done anything wronge per se............it wasn't them that went bust having not supplied the moped.

Admitting no liability seems a bit pointless though - s75 of the CCA clearly makes them 100% liable!

At least it's resolved now though :beer: