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Can I (and should I) cancel this Loan?

(15 Posts)
clumsymum Mon 20-Aug-07 18:58:23

We desperately need new windows, and on Friday night we signed up with a double glazing firm to supply them.
The salesman was good, and persuaded us to take finance too (We don’t have all the money anyway), and made out that we would pay less for the Windows if we took their finance (which turned out to be by GE Capital).

In the cold light of day, I’ve re-read the paperwork, and I think the finance may have been a mistake. The APR is 20% (ouch), although we shall be paying nearly 3 times the necessary payment each month, to pay off a 10 year loan in 2 years. I'm not sure whether this makes the loan cost effective anyway, in which case I may be worrying about nothing

Now we signed 2 separate contracts, one being the order for the windows (remember, we were told our windows discount counted on our taking finance, but there is no mention of this on the order form for the windows), and a separate one for the finance.

We’re still in the cooling off period. If I decide to cancel the Finance agreement, does the contract for the windows stand (we do still want the windows)? I have paid £100 cheque deposit to the window company.

I’m thinking of taking a lower apr loan over 2 years to cover the costs.

ConnorTraceptive Mon 20-Aug-07 19:01:37

there is by law a seven day cooling period in which you can cancel the agreement ifdoubtcancel.

notsure what would happen to your deposit though

LIZS Mon 20-Aug-07 19:03:07

I don't think they can tie you into one price with the other(on which they will get commission). Can you contact Consumer Direct(you can email your local one) to ascertain your rights re: maintaining that price if you cancel. I'm sure even if they do you could get as good a deal elsewhere.

MamaG Mon 20-Aug-07 19:03:47

yy there is a 7 day cooling off. Tell them immediatley and if they mess you about, go to CAB before Friday.

good luck

ib Mon 20-Aug-07 19:07:22

I would cancel. If the paperwork doesn't say the discount/sale is contingent it isn't, whatever the salesman told you.

The only things that are binding are those that are written into the contract.

Sounds like an over pushy salesman to me.

BigGitDad Mon 20-Aug-07 21:45:06

We took out a ten year loan for our flooring and it was the worst thing we did, we paid so much interest it was ridiculous. You can apply for a personal loan on line in minutes and if the term is shorter it will save you money in the long run.
I would see if you can get a loan if you can then go back to him and say you have got the money and can pay in a week or so as most of these loans are pretty quick.
Remember there are plenty of other companies out there and as such he will want your business and will be accomodating to you, do not fall into the trap if thinking without him you will not have the windows you want. Window companies are a plenty.

clumsymum Mon 20-Aug-07 22:15:41

Hmmm On the back of the order form it says they reserve the right to change their price at any time between order and delivery. If they do change the price, we have a right to cancel, and will get the deposit refunded.

It also says I have no cooling off period on the order for the windows if finance is not included.


Further complication. I have discussed this with dh tonight on the phone (he is away again this week). He is currently struggling on the verge of depression, and hates complications. He's in favour of just letting it lie now we've settled on what we are doing.

Bugger. I only let the whole finance thing thru cos we were trying to get ds to bed, my mum was here on a visit, I took my eye off the ball. I wish we hadn't, really I do, cos I do want the windows, and dh doesn't want to go thru the whole palarva again.

hertsnessex Mon 20-Aug-07 22:23:42

cancel...........

LIZS Tue 21-Aug-07 08:19:48

Speak to Consumer Direct (Trading Standards) to check the legality of such a clause, no harm in finding that out even if you don't change anything. I think you can cool off on the order too , if it is in your own home, but it may depend on whether you asked them to come. If you can cancel do as I suspect they will be less than cooperative further down the line if you rock the boat. Then find someone else who uses less pressure and you can arrange your own finance - even adding it to the mortgage would probably be cheaper. good luck

Helennn Tue 21-Aug-07 10:23:42

Do check that you are allowed to make overpayments and repay the loan early without any penalties, (why does it have to be over 10 years any-way which is a very long period of time?). 20% is ridiculously expensive, I personally think you should apply for a cheaper loan elsewhere, (like on-line), then work out what money you would save in interest payments and then tell your husband. Say there is no hastle but it would save you £x. I think if you go the easy route now it would only create stress later.

clumsymum Tue 21-Aug-07 11:26:44

Right, I have rung the salesman this morning, who says that if I pay them the 5000 when the work is done, instead of signing a satisfaction report for the GE loan, then the GE loan will never kick-in, and I will not have to pay GE anything.

I am slightly concerned because he has our signed GE forms.... but I suppose I just cancel any direct debit if they create one.

I think I may have to take an executive decision on this one, and present him with a fait accompli when I've got it sorted.

callmeovercautious Tue 21-Aug-07 11:33:43

I would ask for the forms back. I am very wary of verbal agreements with sales companies especially window firms. We were diddled into taking out paument protection on the finance for our windows. Our copy was blank in that section but we were charged the additional monthly fee. When we queried it they said their copy had it on. When we got a copy - there it was - but not on our top copy. The salesman had filled it in afterwards

We got a full refund and an appology but it has really put me off finance agreements and won't use them anymore - if we don't have the savings we don't buy it!

Get a loan from your bank or other reputable place and pay the window firm once the fitting is finished and you are happy with the work.

MerlinsBeard Tue 21-Aug-07 11:47:42

that sounds a bit odd to me. if you have an agreement with GE then you need to sign it not the salesman. i would be wary of GE anyway but then all my experiences have been bad with them (constant pestering onphone and in writing for one)

Helennn Tue 21-Aug-07 11:54:56

Sorry, but do not like the sound of what he says. If a loan has been set up you cannot just cancel the direct debit, the finance company would have paid the window company the money and would want it back from you. If you have signed the agreement I doubt you would have a leg to stand on, at least ask for all signed copies of the loan agreement.

Like callmeovercautious we were recently nearly diddled by a window company, I had to write to the MD to get our deposit money back after the salesman promised one thing then delivered another. So sorry, don't trust them. I would try to sort a loan out from elsewhere, then tell the window company you will go ahead at the price agreed with your own finance or the deal is off. Like several have already said if you want to make doubly sure ring Consumer Direct and run it past them - they were very helpful for me.

clumsymum Tue 21-Aug-07 20:27:49

Right, I'm cancelling. Persuaded dh that it's the right thing to do. I'll write to GE, and also to Amber Windows, but I'll tell Amber that we want to go ahead with the product.

I suspect they'll try to raise the price, in which case, we'll go elsewhere.

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