Third-party finance agreement?

lmitchell

Hi guys, I'm hoping you can help me.

I've been trying to purchase a new sofa on 0% interest free finance this week but have been declined on two occasions from companies used by the sofa retailer in question.

I'm a little bemused as to why I've been declined but it may be due to the fact I'm not yet on the electoral roll of my new address.

Anyway, the chap suggested on the phone there was a way around it so that a parent/guardian could put their name and address to the sofa order and I would sign the direct debit commitment. Is this normal practice? I think he said it was a third-party finance agreement on the phone but I may be wrong.

In essence would it mean my parent/guardian would be acting as a guarantor?

Your guidance would be much appreciated.

Many thanks

ChopperST

lmitchell wrote: »

Hi guys, I'm hoping you can help me.

I'm a little bemused as to why I've been declined but it may be due to the fact I'm not yet on the electoral roll of my new address.

In essence would it mean my parent/guardian would be acting as a guarantor?

Your guidance would be much appreciated.

Many thanks

Electoral role is probably the reason for the decline as you can't be linked to your new address.

Using your parents details will mean the loan is 100% theirs and not yours.

lmitchell

ChopperST wrote: »

Electoral role is probably the reason for the decline as you can't be linked to your new address.

Using your parents details will mean the loan is 100% theirs and not yours.

I'd like to think it's the only reason. I've stupidly just not got around to sorting the electoral roll out - I've been at this address over a year now.

So the loan would be 100% theirs but I could use my bank details to cover the Direct Debit?

lmitchell

Just found out I'm still registered on the Electoral Roll at my family address (which I gave as my previous address in the credit applications). Would this be enough for lenders to reject?

Apples2

What else is on your Credit File?

How much debt do you have compared to your Salary, any missed payments, CCJ's, DMP's etc.

Do NOT get your family involved in taking ownership of your debt. If you fail to repay they will be Sofa king mad at destroying their own financial situation.