Section 75 - what are my rights if company goes bust and we have an agreement with a finance company

peschke52

Hey,
We recently commissioned company to fit a new fireplace, cost around  £9k which we paid deposit on a credit card of £950, and were going to pay the balance on a 12 month interest free agreement with Hitachi finance - full balance payable before 12 month period up. If the Company goes bust without the work being done, will we still be liable for payment of the balance, or can we claim  section 75 to either the credit card card company who we paid the deposit through, or the finance company if we go that route?
Because of the current situation, we asked the Fireplace company to cancel the order, but they have told us they can't do that because they have ordered the fire, and surround etc and we have to pay. The other thing was we still haven't signed off the final design yet, and we had said to them the order was subjct to them supplying a final design - any thoughts?
Many thanks 

MallyGirl

I edited your title as it was all in capitals which is considered shouting on forums

eskbanker

peschke52 said:

We recently commissioned company to fit a new fireplace, cost around  £9k which we paid deposit on a credit card of £950, and were going to pay the balance on a 12 month interest free agreement with Hitachi finance - full balance payable before 12 month period up. If the Company goes bust without the work being done, will we still be liable for payment of the balance, or can we claim  section 75 to either the credit card card company who we paid the deposit through, or the finance company if we go that route?

Section 75 rights should apply in these circumstances, which would enable you to claim via the credit card company.

peschke52 said:

Because of the current situation, we asked the Fireplace company to cancel the order, but they have told us they can't do that because they have ordered the fire, and surround etc and we have to pay. The other thing was we still haven't signed off the final design yet, and we had said to them the order was subjct to them supplying a final design - any thoughts?

Was the design precondition specified in writing?  Your order will be subject to Ts & Cs, which should specify any cancellation rights and/or cooling-off period, but unwise to assume that you're at liberty to cancel unilaterally, so you may still be liable for the full cost....

Tildaplum

1. you can't cancel the order unless the T&C allow you to - it is a binding contract
2. because it is a credit agreement you are protected if the fireplace company goes bust.

born_again

Chargeback on te £950 on the credit card. Then odds on card co will tell you that given you have finance any S75 will be by them.
But if you cancel neither of the above are available.