Has my mother in law been ripped off?

redandblue

My mother in law signed a contract for a 15K conservatory on 19th October. I think she might have been conned. She signed on the basis of being able to borrow the money from the conservatory company's finance scheme with an interest rate of 0.79% over 10 years.

She got a letter from Barclay's (who run the conservatory company's finance scheme) today and it says that the APR is 10.5%, not 0.79%.

At the time she signed the contract at her house, she had no written information about the Finance deal - only what the salesman told her. But she based the decision on signing the contract on the (false) knowledge that she could afford it and that the interest rate was unbeatable (this is what the salesman said).

All she has is a contract detailing the measurements of the conservatory.

Is this an unfair term in the contract? Can she cancel and get her money back based on this?

dampdaveski

Hi red,
I think with the consumer credit act there is a 14 day cooling off period, so I suggest you check the small print and get it cancelled

redandblue

Hi, thanks. The contract says you can cancel within 7 days of the order and apparently (just googled it) Consumer Law is within 7 days when ordering services. Its 14 days for goods.

Oh dear. Thanks though!

thebaldwindowfitter

as stated there is 14 day cooling off period with finance but also she should have a copy of the finance agreement which she should of signed setting out in writing what the apr is

redandblue

Ah right, I see. So, if she cancels the finance then, in affect, she is cancelling the conservatory order as well?

She got the finance agreement today and hasn't signed it. So, do you think that she can cancel?

thebaldwindowfitter

when was the agreement signed and i would be asking where her copy of the finance documents are .this is a common scam by salesmen we do not do finance did do but rather let customers sort themselves out

redandblue

She signed the agreement on 19th and tried to cancel on 26th but they said this was the 8th day (fair enough) - not within 7 days of the date of the order. She didn't have any finance documents when she signed the contract so I will ring them and challenge them based on this.

She's very vulnerable and on medication so really no fit state to be making decisions like this with a pushy salesman in her home.

They seem very keen to protect their reputation so I could always threaten them with ombudsmen and press. I have plenty of time on my hands and motivation to get fair deal for her.

Thanks so much for your help.

Primrose

Try Trading Standards at your local council as well.

bigheadxx

The cooling off period is 7 days if it is made in your own home. The 0.79% APR seems to me to be a monthly equivalent of 10.5%.

You should lodge this with Consumer Direct, attempt to cancel directly with the company and if that fails go to the Financial Ombudsman Service on the basis that the agreement is unfair because she was given misleading information and no account was taken of her ability to enter into this agreement.

spmc

I would send a letter as soon as possible recorded delivery setting everything out, how your mother in law was misled and misold finance, when you rang to cancel (it would still be possible to be within 7 days on the 26th depending on the time of the call) and stating that you want the order cancelled. They shouldn't have started processing the order for 7 days so I doubt they had progressed the order very far when you called.

I doubt they are that worried about their reputation if they didn't agree to a cancellation 7/8 days after the contract was signed. I think if they were they would have simply agreed to the cancellation.

It might be worth speaking to Citizens Advice

redandblue

I've just foud out what they do. They have transplanted her signature onto the Barclays Finance deal from the contract. That's not good is it?

Fortunately, she is within the 14 days so can cancel the agreement.

They are so evil, aren't they?!!