Magnet kitchen deposit and 0%

meganwatkins6

Hi everyone. Around a month ago we agreed a kitchen design and price with Magnet and paid a £1000 deposit. We were told at the time they had 0% finance to spread the cost over 5 years which is why we paid the deposit. We then found a builder and have been agreeing plans with them. I’ve gone back to Magnet to start the application for the 0% finance (which they told us we can do at a later date) and have been told they no longer are offering the 0% finance. Do I have any rights here? I don’t have it in writing about the 0% but we don’t want to pay the 5.9% rate now offered with their finance and frankly can’t afford to pay up front. I’d like my £1000 back or them to honour the 0%. 

Jenni_D

What can you prove? Was 0% advertised at the time? (Try the Wayback Machine [Internet archive])

meganwatkins6

It was advertised at the time, I’ll see if I can find evidence of it! 

DanDare999

What does You contract say about taking out finance?

meganwatkins6

I haven’t got any kind of contract 🤷‍♀️ All I was given was a receipt for my deposit of £1000. 

meganwatkins6

We were told that they’d bring us back in within a few weeks to do the finance application.

DanDare999

meganwatkins6 said:

I haven’t got any kind of contract 🤷‍♀️ All I was given was a receipt for my deposit of £1000. 

meganwatkins6 said:

We were told that they’d bring us back in within a few weeks to do the finance application.

You have a contract as you paid £1000 deposit for a kitchen. What you mean is you have no paperwork. 

Given you have no paperwork and didn't apply for finance, your options are take their finance or pay by other means. 

meganwatkins6

I thought that may be the case Dan. So I’d have no rights to my £1000 back? I paid on a credit card if that makes a difference. 

DanDare999

meganwatkins6 said:

I thought that may be the case Dan. So I’d have no rights to my £1000 back? I paid on a credit card if that makes a difference. 

If you want to cancel the contract then Magnet have a right to keep any reasonable costs they have incurred so far.  

meganwatkins6

Thanks Dan, I don’t think they will have incurred many costs at all but let’s see. Id ideally like to continue with our purchase so will explore other finance options such as credit card. 

Jenni_D

Unless you're able to pay it all off within the interest free period (up to, say, 56 days) of a credit card, then a CC is probably one of the worst financial products you could use for this ... it could cost way more than the 5.9% rate Magnet are now offering. (Bearing in mind that the interest rate [APR] on a CC is usually around 30%, some are much higher).