I Applyed for finance before my IVA can i cancel it?

dazzie666

Hi Guys i really need some help. I signed an agreement 17 days ago for conservatory finance, I was told they would be in touch the next day to arrange a surveyor.since we signed weve heard nothing back from the company so thought we must have failed the credit check. Due to debt restructuring,I was advise by a debt company to take an IVA rather than a consolidation loan to which im about to start, However tonight ive recieved a call from a finance company saying my application has been approved. Is there anything i can do to cancel this agreement as i no longer want it? Please help!

skintandscared_2

Have you actually signed anything? If not, I'd just call them and say thanks but no thanks.

dazzie666

They got me to sign a "fixed sum loan agreement" but was told it was to see if finance would be passed? and also what looks like a conservatory contract for the company. Im really worried this is going to hamper my IVA as ive never been in this position before.

FoggyBrain_2

Well, the finance company have two choices --- cancel the agreement and walk away, or pay the money, you get the conservatory and they get bound into the IVA and get a fraction back. This, of course, depends upon the amount of credit they are advancing. If it is near 25% of your total debt they could vote no and scupper the IVA.

dazzie666

My IVA is for 21,000 with the biggest loan being 12,000 they want 13,500 so they possibly could. I will try and ring them tomorrow with the hope the words IVA scare them off, if not looks like bankrupcy would be the other option however one ive tried to avoid Thanks for your help though feels good to get some advice on it thanks

FoggyBrain_2

Well -- they might know that they could scupper an IVA ( although they won't know how big a fish they are). But they might also know they cannot scupper BR -- so that threat would carry more weight.

adyj73

Sorry if this seems rude but why did you apply for a 13 grand conservatory knowing your finances were already so screwed you would need to do a consolidation loan or an IVA? Seems a bit crazy to me and could understand creditors, IVA IP, and possibly the OR in Bankruptcy being mighty annoyed with you. How did you expect to be able to pay for it under normal conditions??

DrSqueeze

dazzie666 wrote: »

Hi Guys i really need some help. I signed an agreement 17 days ago for conservatory finance, I was told they would be in touch the next day to arrange a surveyor

With any financial agreement there should be a "cooling off" period when you can review and cancel with no penalty. I'd tell them you want to do precisely that.

FoggyBrain_2

Only a 14 day cooling off period for financial products, I'm afraid.

adyj73

Maybe this is why he heard nothing from them - they were going all silent until the cooling off period had elapsed...however I fail to see how they could benefit here. He's going IVA so they should just cancel the agreement or if they 'INSIST' on him fulfilling the agreement he will have to add them to the IVA and they will legally have to provide the Conservatory. If they then decline the IVA he goes bankrupt and they end up with sod all having built a conservatory so I fail to see why they would not just rip up the agreement to be honest - they can't win

FoggyBrain_2

This is true adyj73 --- but, as we know, sense does not always prevail ! Let us know how you get on Daz ... best of luck.