Loan for training provider who's now gone bust

fwor

Hooli wrote: »

i paid the outstanding sum of £155.50 on my credit card. Does this now mean i'm covered by my credit card under section 75 of the Consumer Credit Act?

I don't think that's likely. I would expect that if you use a credit card to pay under a contract that's already in dispute, you would not be able to subsequently blame the credit card provider for the dispute.

Hooli

I've looked through my finance contract and it states:
'The loan must be used to finance the purchase of the goods/services specified in the PCI. Those
purchases are covered by section 75 of the Consumer Credit Act 1974. This means that for
purchases of goods or services costing between £100 and £30,000, you may have a right to sue the
supplier of the goods/services, us or both, if the supplier of the goods or services fails to carry out its
obligations under its contract with you (for example if the goods are not delivered or they are not of
satisfactory quality) or if the supplier has persuaded you to enter into the contract on the basis of
incorrect information. Otherwise, we will not be responsible in any way for the goods or services
supplied to you.'
Does this mean i can now put a claim in to the finance provider?

Brock_and_Roll

Hooli wrote: »

I've looked through my finance contract and it states:
'The loan must be used to finance the purchase of the goods/services specified in the PCI. Those
purchases are covered by section 75 of the Consumer Credit Act 1974. This means that for
purchases of goods or services costing between £100 and £30,000, you may have a right to sue the
supplier of the goods/services, us or both, if the supplier of the goods or services fails to carry out its
obligations under its contract with you (for example if the goods are not delivered or they are not of
satisfactory quality) or if the supplier has persuaded you to enter into the contract on the basis of
incorrect information. Otherwise, we will not be responsible in any way for the goods or services
supplied to you.'
Does this mean i can now put a claim in to the finance provider?

The course provider becoming insolvent does not automatically make it in breach of contract, however, presumably the OP has been told that the courses will no longer be provided, in which case I think we can take it as a given that there is a breach.

I would do 2 things:

1) keep paying the loan payments on time for the time being

2) write a short and strictly factual & polite letter to the lender setting out the factual details - dates, times amounts, parties etc. Can head the letter "Letter before Action"

3) Conclude the letter by stating that under the CCA (don't mention specific clauses) you believe the lender to be jointly and severally liable in the event that the supplier is in breach of contract.

4) Give the lender say 21 days to respond.

Hooli

Thanks Brock_and_Roll

I'll do that, drafted a letter already. I'll keep you posted on progress.
:beer:

Hooli

Hello All
So, i sent the letter to the finance company and they responded with "Your credit agreement was provided as part of our up to 12 months interest free product. This means it is not covered under the consumer credit act."
I don't get it, the T's and C's clearly state

"Those purchases are covered by section 75 of the Consumer Credit Act 1974. This means that for purchases of goods or services costing between £100 and £30,000, you may have a right to sue the supplier of the goods/services, us or both, if the supplier of the goods or services fails to carry out its obligations under its contract with you (for example if the goods are not delivered"

In the meantime, i've had a letter from a liquidation company advising the training provider has placed itself into 'Creditors Voluntary Liquidation'. It also encloses a Voting Form for me to vote on whether i'm in agreement with either the fee of the liquidation company (£7500) being paid as an expense of the liquidation OR the liquidator being authorised to draw category 2 disbursements.
How I wish i'd never signed up to this provider.

Ironic that a company providing training courses to equip students with the skills and knowledge to improve peoples physical and mental health can do something like this that causes no end of anguish and financial problems!!

Any advice and guidance much appreciated as always. :-)

sourcrates

The terms and conditions written on your agreement surpass anything the company may tell you verbally or in writing.


You can invoke sec 75 and take your card provider to court, it dosent cost much.

fwor

I think there may be some confusion here. As I understand it, the OP did not originally pay any of the repayments by credit card. Those payments were all by Direct Debit.


Once it became apparent that there was an issue with the provider, the OP then made one repayment by credit card.


As I said earlier, I doubt that would qualify for Section 75 - not least because the payment was made when it was already apparent that the provider was in trouble. I don't think you can use a technique like that to put a credit card provider "on the hook" after the event.

Hooli

Sorry, i wasn't very clear.

When i signed up with the training provider I could either pay in full or take out their finance with a company called Omni Capital. It was 12 months interest free. The T's & C's I'm quoting are those of Omni Capital.

Hooli

Hi All

I'm still here, fighting the battle.
I put a complaint into the FSO only to be told, as the finance agreement was 0%, it is exempt from Section 75 of the CCA 1974.

I've just looked back through my credit card statements to find I paid the initial deposit (£208) on my credit card. Does this mean that I can now claim the loss from my CC?