Paul simon administration - Loan

parking_question_chap

Hi all

Not sure if this is the right section, but we have had a call today from the branch saying they have gone into administration.

We have paid about £250 (unfortunately by debit card) deposit
We have £900 balance on finance with the finance company paul simon set you up with.

We have about 10days left to be able to withdraw from the credit agreement. The form says that if you withdraw from the credit agreement you have 30days to pay off the balance. However would we still have to pay a balalnce if we dont get any goods?

I have phoned the credit agreement company and they do not know the answer to the above.

Also is there any kind of cooling off period that would apply?

chalkie99

Depending on what type of debit card you used, you may be able to get your deposit back.

Have a read of the details at this link:
http://www.moneysavingexpert.com/shopping/visa-mastercard-chargeback

Tixy

According to the press tody the administrators will continue to run the company.

What have you ordered from them and when is delivery expected.
The call you had - did they say that this meant your goods would not be delivered? or did they not say one way or the other.

What order/contract have you signed with paul simon?
Have you signed the finance agreement with the finance company? when?

If they do not deliver the goods you may be able use the visa chargeback scheme to get your deposit back.

If the finance was arranged by the retailer and if the funds were due to be paid straight to retailer on your behalf then this will likely be covered by section 75 of the CCA.

Tiny_Tina

parking_question_chap wrote: »

Hi all

Not sure if this is the right section, but we have had a call today from the branch saying they have gone into administration.

We have paid about £250 (unfortunately by debit card) deposit
We have £900 balance on finance with the finance company paul simon set you up with.

We have about 10days left to be able to withdraw from the credit agreement. The form says that if you withdraw from the credit agreement you have 30days to pay off the balance. However would we still have to pay a balalnce if we dont get any goods?

I have phoned the credit agreement company and they do not know the answer to the above.

Also is there any kind of cooling off period that would apply?

Do not exit the credit agreement (else you might lose everything)

Keep to the agreement. If the goods fail to materialise (unsure what the position is) then if all else fails you can get all your money back from the credit provider under S75 (including the deposit)

Best to wait and see what happens ... you may still get the goods you ordered

parking_question_chap

Hi thanks for the replies

I have phoned the bank and they have said they cannot claim on chargeback unless I have written or email confirmation that the carpet will not be delivered, I do not have this, and guess I am not going to get this at the moment.

Tixy, the agreement was set up by the retailer and we signed this last sunday, the fixed sum loan agreement is with "Ikano bank". What we are concerned about is if we cancel the credit agreement are we still protected by section 75? Could they then say you will need to pay the balance of £900 in full? We are able to do this financially, but we dont want to have to pay £900 for a carpet that is unlikely to arrive.

The reason for this concern is, the agreement says we can cancel but still have to pay the balance (within 30days), which would be fine in normal circumstances. But there is no mention on the contract if we are or are not still bound to pay the £900 should the goods not get delivered.

We have been given a number to call for more info, paul simon have 2 of the 3 carpets, but could not advise if we would be getting them. My girlfriend answered the call and took the contact number, but she did not ask who the number going to connect us with. Google does not match a company to the number either.

parking_question_chap

I am now more confused, some people say leave agreement, some say keep it. I just have no idea.

eddddy

parking_question_chap wrote: »

I am now more confused, some people say leave agreement, some say keep it. I just have no idea.

So here's my view...

At this stage, it sounds like Paul Simon and/or Ikano haven't breached the contract with you yet. You have to wait until they do, before you have any rights under s75.

If you cancel the credit agreement now (before they breach the contract), you may lose any rights under s75.

So I would say: keep the credit contract going until a breach occours (i.e. when they fail to deliver the goods). Then make a S75 claim against Ikano.

You can make a visa chargeback claim at the same time, but I believe that you could claim the full amount from Ikano anyway. (Same rule that applies when you make only a part-payment by credit card - which is often quoted in this forum.)