No payments taken on a finance agreement

Gavin83

mrtoyotamr2 wrote: »

Can they back date any payments, being their fault for not having set up whatever is required correctly?

Yes, you owe the balance one way or another. Of course if it's their fault they're likely to be more flexible.

mrtoyotamr2

We've read it line for line and it's literally that they will take £xx a month for 48 months leaving a balance owing of £0 on the final payment.

The finance agreement is with Barclays and when we called they said the store had not requested the funds, meaning the bank won't chase the store as they rightly would keep their money until requested.

The bank can't chase us as we've as of yet not 'borrowed' any money either.

mrtoyotamr2

Interest free credit sorry not BNPL... key point missed off there by me!!

mrtoyotamr2

DoaM wrote: »

Tip: read the finance document and see what it exactly says regarding payments.

Note: If payments are within their control then they cannot penalise you (e.g. add interest charges) for their lack of action.

Yes payments are fully in their control as they have full access to taking them via a direct debit which as of yet have not been taken, and on calling up they say the store has not requested any of the funds.

DoaM

Does the DD show in your bank account as having been set up? If it has been established ... and it is the other party that needs to set it up ... then it will show in your account, albeit without a last payment date. If it doesn't appear then it means the other party haven't requested for the DD to be setup, OR they tried to set it up incorrectly and your bank rejected it.

stragglebod

Interest free credit agreements have very stiff penalties for getting behind with payments. I can see this endly very badly.

DoaM

stragglebod wrote: »

Interest free credit agreements have very stiff penalties for getting behind with payments. I can see this endly very badly.

Except if the issue is caused by the recipient not taking payments then no penalty clauses can be applied.

askmeaboutsofas

If it was me, I would contact the company and tell them. Chances are they will notice, and when they do they might attempt to charge you a fine or penalty as if it is your fault - even though it isn't. If you preempt that by telling them there's a problem and payments aren't going out you should avoid issues with it later on.
Maybe check the terms and conditions as to who owns the furniture, they may retain "title to the goods" until they're paid for in full.

steampowered

askmeaboutsofas wrote: »

If it was me, I would contact the company and tell them. Chances are they will notice, and when they do they might attempt to charge you a fine or penalty as if it is your fault - even though it isn't.

I agree completely with this.

Contact this company by email as well as any phone calls, if possible.

Then, if they do try to claim any penalties at a later date, you will have an email as evidence to prove that they were told about the issue.

Don't spend this money - keep it ringfenced, ideally in a separate savings account so you aren't tempted to spend it. They have up to 6 years from the due date of the payment to claim it.

This forum does unfortunately have a number of threads from people in a similar situation, who are asked to pay a few years later after they have already spent the money and are pushed into financial difficulties as a result.

Fluffybunny80

It'll most likely be 'pay nothing for first year'
Then four years of interest free payments.
That's why it's called five years interest free credit.
Check your paperwork I bet it's that
First payment will likely be one year since order date ours was and was with DFS and Barclays partner finance.