Snug Sofas - not getting my sofa or a refund!

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Meanwhile of Facebook they are coming up with statements like this:

Hey Jennifer, I know its super unfair right now. I'm really gutted to read your conversations but I completely understand your feelings right now. The Snug team are doing everything we can to work with our customers through this transition under new management and one day, hope to regain your trust but in the meantime we unfortunately have to support our community through 'due process.' If there's anything I can do provide a human element at the end of the line please don't hesitate to reach out to me in DMs and I'll do my best. x Lauren

Londonvictoria

And I still don't understand how the company is still active on companies house with no reference to administration....

Is this something worth getting in touch with trading standards? Seems very odd.

born_again

Londonvictoria said:

I am in the same boat. Ordered in October, was due delivery in two weeks. £1500 down. Paid debit card, so no immediate right to have it reimbursed by the bank (has submitted a request). The company was taking orders right up until the day they sold, and they stated that they'd been planning this for a while, so they knew full well this would happen. It's absolutely disgusting. The sofa that I ordered to be made that was due for delivery will now be sold to someone else!

Chargeback for non receipt. Nice easy one if you have proof of not longer trading. 

There is always a hope that someone will come through & bail them out. So they have to keep trading. While you will get your £1500 back. The staff have lost their jobs.

Londonvictoria

Have staff lost jobs? The press release says all jobs are secure.

I'm not automatically entitled to charge back, am waiting on bank/visa decision.

DullGreyGuy

Londonvictoria said:

And I still don't understand how the company is still active on companies house with no reference to administration....

Is this something worth getting in touch with trading standards? Seems very odd.

It happened on the 10th January... Companies House and the Gazette dont update that quickly.

Alderbank said:
They are a Buy Now Pay Later outfit like Klarna or Laybuy. Their website makes it clear that Dividebuy credit agreements are not regulated by the Financial Conduct Authority and do not fall under the jurisdiction of the Financial Ombudsman Service.

Given we are talking about S75 of the Consumer Credit Act the key thing is if the loans fall within the scope of the CCA or not rather than FCA or Ombudsman.

The CCA only covers for loans that are paid in 4 or more installements or with durations longer than 12 months. There are upper and lower bounds for the loans too but the key thing is the OP said theirs was 2 instalments and Klarna offers 3 instalments hence not a regulated loan and no S75 protection. 

stitchmaker85

Hi, just catching up on this. 

Snug staff have not lost their jobs, all have been secured as the operation was bought entirely by ScS.

There is absolutely no guarantee that I will get any of my money back, meanwhile I will have to keep making monthly payments on it for 10 more months or end up screwing my credit rating.

I split payments over 12 monthly payments using Divide Buy on checkout, (my OP said I had only paid 2 so far - I still have 10 to pay) but technically it won't be 12 months as first payment was taken late November and last payment is due late October, so only 11 months really. 

Divide buy and Snug are not giving any more information other than the fact that it will take 14 days to investigate. 

Meanwhile I can't sleep or eat over the fact that it's highly likely I won't get my money back or my sofa and they are all sitting pretty.

DullGreyGuy

stitchmaker85 said:

I split payments over 12 monthly payments using Divide Buy on checkout, (my OP said I had only paid 2 so far - I still have 10 to pay) but technically it won't be 12 months as first payment was taken late November and last payment is due late October, so only 11 months really. 

It's an OR statement not an AND... if it's designed to be more than 3 payments it should be in scope of the CCA and therefore covered under S75. It its less than 4 payments but intended to be over 12 months then it too would be covered.

The CCA may have changed since I last looked and companies do spend a lot of money trying to work out how to fall outside the scope but I know last time I was asked to look into it for a client the lawyers couldn't recommend a way to avoid being in scope unless they were willing to reduced payments to 3 or less.

stitchmaker85

DullGreyGuy said:

stitchmaker85 said:

I split payments over 12 monthly payments using Divide Buy on checkout, (my OP said I had only paid 2 so far - I still have 10 to pay) but technically it won't be 12 months as first payment was taken late November and last payment is due late October, so only 11 months really. 

It's an OR statement not an AND... if it's designed to be more than 3 payments it should be in scope of the CCA and therefore covered under S75. It its less than 4 payments but intended to be over 12 months then it too would be covered.

The CCA may have changed since I last looked and companies do spend a lot of money trying to work out how to fall outside the scope but I know last time I was asked to look into it for a client the lawyers couldn't recommend a way to avoid being in scope unless they were willing to reduced payments to 3 or less.

Thanks for the info, are you able to direct me to a link to the limitations/scope of their liability? Everything I have found says they aren't required to be regulated by the FCA or comply with the CCA as their 'loans' are interest free and for a maximum period of 12 months (number of payments regardless)

stitchmaker85

This is direct from the Government Website: 

"Offering credit to consumers: the law

You must be authorised by the Financial Conduct Authority (FCA) to offer credit to consumers"

So how are DivideBuy getting around this? They are a UK registered company, I'm so confused.

DullGreyGuy

stitchmaker85 said:

DullGreyGuy said:

stitchmaker85 said:

I split payments over 12 monthly payments using Divide Buy on checkout, (my OP said I had only paid 2 so far - I still have 10 to pay) but technically it won't be 12 months as first payment was taken late November and last payment is due late October, so only 11 months really. 

It's an OR statement not an AND... if it's designed to be more than 3 payments it should be in scope of the CCA and therefore covered under S75. It its less than 4 payments but intended to be over 12 months then it too would be covered.

The CCA may have changed since I last looked and companies do spend a lot of money trying to work out how to fall outside the scope but I know last time I was asked to look into it for a client the lawyers couldn't recommend a way to avoid being in scope unless they were willing to reduced payments to 3 or less.

Thanks for the info, are you able to direct me to a link to the limitations/scope of their liability? Everything I have found says they aren't required to be regulated by the FCA or comply with the CCA as their 'loans' are interest free and for a maximum period of 12 months (number of payments regardless)

What's exempt is covered by:

https://www.legislation.gov.uk/uksi/2001/544/part/II/chapter/14A/crossheading/the-activities

Personally I'd be putting it on them to identify which clause they are relying on rather than trying to interpret all of them yourself as there are a fair few but it covers things like mortgages, employer/friend/charity loans etc etc