Sofa finance

WOODY1986

We signed up for sofa finance in store and we want to cancelled. We've not yet received the sofa but the t&cs we have to pay 25% of the balance if we have received the sofa. But like I said we've not yet received it, but the company we ordered from using the corona virus as an excuse not to cancel our agreement. Our estimated delivery date has passed by over a month and they still can't give us an estimated time of delivery. Where do we stand for cancelling our finance agreement without paying the 25%?

DoaM

Ordered in store = no automatic right to cancel, other than any cancellation terms offered in the contract. You can cancel the finance (although this may incur cancellation charges as you're more than 14 days since arranging it - unless the clock doesn't start ticking until delivery), but that doesn't cancel the sales contract - it just means you need to find another means of paying.

You can advise them of cancellation due to the estimated delivery being missed and no confirmed date yet being advised, and refuse to pay any charges. They would then need to take court action against you to try and force you to pay - whether they would in this instance is open to debate; your counter-argument would be that 25% is an arbitrary sum, hence looks like a penalty (which is not allowed in consumer contracts) and put them to strict proof that this amount is a true estimate of their losses caused by your breach of contract.