Rijo Coffee Machine; Ending Contract with CF Corporate Finance

Monkeys123567

I took out a contract with Rijo for a Brasil Coffee Machine, as a new business starting out I was nervous of signing a contract but advised it would all work out but not to worry if it didnt, support would be in place! I obviously decided to take the monthly payment options as could not afford the £8k they advised it would cost outright. So given the full sales pitch and i fell for it.

The contract, monthly payments £215 less VAT for 63 months………6 months on the business failed.

I have had to chase hard for responses and we are now here:

• There is £13,500 left to pay
• Rijo has offered to collect the machine and pay £50 as a Gesture of good will……
• I had been advised by CF Corporate that machines are practically worthless and often not even worth collecting
• I am not being provided with the actual value of the machine (have asked about 6 times and keep getting a very long answer that doesnt answer the question)
• I have the option to sell the machine (taken in to account the above they have told me)

So in summary i have been sold what was at the time the finest and best coffee machine that is ultimately now worthless.

Fully appreciate i was naive enough to sign the contract but I always thought there would be a way out in it being returned or last resort sold.

The business is now closed with me moving out the premises end of march, I have no way of paying the debt currently. And all of this has been fed back to CF Corporate.

And no support provided from Rijo, all correspondence now via CF Corporate.

I need advice or support on where i stand or what avenue i can go down? Financial ombudsman etc or if anyone can state if i even have any rights!!

MSE_ForumTeam5

We've moved this to our section for small business questions, as it's not strictly a 'consumer' matter.

born_again

Hopefully you set up a Limited Co.

Or was this taken as a personal loan?

FOS will not be able to help you.

Monkeys123567

I am just a sole trader, so against myself.

i was not sure if there is anything against Rijo rather CF Corporate, in terms of being sold equipment that holds no value? it just does not seem right at all.

molerat

It will have a value to someone, it is just the suppliers don't want to buy it - why should they when they can flog a new one for silly money. You need to look at other avenues to shift it. All equipment devalues, some faster than others, especially when it was likely over priced in the first place. A business needs to carry out due diligence before entering into a contract, a hard lesson I am afraid.

MattMattMattUK

https://forums.moneysavingexpert.com/discussion/comment/81908797#Comment_81908797

Lots of things lose a significant proportion of their value once sold to the first user.

You signed up for an awful deal, but that was of your own free will. You have no claim against either of them unfortunately.

As you took the contract out in your own name (being a sole trader not a limited company) you are liable for the cost.