Advice regarding failure to take payment.

russelldav

Hi,

I purchased two sofa's from DFS in December 2010. I took their 4 year interest free credit deal as it seemed to make perfect sense to me to spread the payment (~£700) over as greater period as possible.

After a few days all the paperwork came through from the creditor Hitachi Capital, with confirmation of my direct debit details (which are correct) and informing me that my monthly instalments would start in January of this year. It is now May and I have been unable to get Hitachi to start taking any payments, despite a handful of phone calls and emails to their Customer Service team and DFS.

I think the matter has been confused by DFS who ended up agreeing to refund me £114 for missed delivery promises - and who credited HC directly on my behalf. I received a letter from HC confirming they had received the refund but only part of it - and I am still chasing confirmation of the outstanding refund amount through DFS.

What are my rights? I am completely confused by the situation and do not know when and how much payment will be taken now, as the original schedule with the HC paperwork is obviously now incorrect.

Thanks.

R

mountainofdebt

How much were the monthly DDs originally for?

The reason I ask is that if the payment that DFS made to Hitachi Capital covered the payments for the period Jan - May then they wouldn't need to take the payment from you (if that makes sense)

visidigi

£700 / 48 months = £14.58 monthly

HC won't have changed the finance agreement as a result of the credit, so if DFS have credited more than £73 then thats why HC haven't taken any money as they are already up to schedule - so I agree with mountainofdebt on this one...

arcon5

I'm confused.

Your rights against who/what? DFS are paying the first few months installments, isn't that a good thing? .

molerat

Agree with above, any other scenario other than DFS having made advance payments for you would mean a new credit agreement required.

Flyboy152

arcon5 wrote: »

I'm confused.

Your rights against who/what? DFS are paying the first few months installments, isn't that a good thing? .

I think what the OP is concerned about is, what are his rights if the finance company start proceedings to recover the monies owed. Will they start to charge interest on the whole amount borrowed, will they register a default etc.?

visidigi

There is nothing owed, this is the point, as the OP says, DFS credited and informed the finance company, therefore the initial payments due on the agreement were cancelled out by the amount of credit DFS applied.

Flyboy152

But this is what the OP is seeking to have clarified and is why he is on here asking for advice.

Flyboy152

dpraved wrote: »

you that hard up to take 4 years to pay back £700?

What is wrong with that? We are not here to pass judgment on someones ability to pay anything.

If it's interest free, I'd take a lifetime; the money is better off in my bank account earning interest, than in someone else's charging me interest. However, that is not why the OP has come to MSE in the first place.

arcon5

dpraved wrote: »

you that hard up to take 4 years to pay back £700?

If they are not paying more for the 4 year term than a shorter term then why not?

Moneys always bettern in your pocket than theirs

russelldav

Cheers for all the replies, I hadn't considered that the refund would supersede the DD payments (I assumed it would just reduce the principal and so in effect I'd pay off the credit sooner). I have been putting the payments to one side anyway just to be safe.

dpraved wrote: »

you that hard up to take 4 years to pay back £700?

As a few people have already pointed out, why on earth would I want to give DFS any money when I can stick it in a savings account for 4 years - the interest alone is worth about 5% of the cost of the sofas.