PIL's bamboozled into credit agreement - what now?

[KBear]

In a nutshell, my in-laws have signed a credit agreement for a kitchen. We have just found out (7 days later) that then loan is for circa £5,000 with an apr of 19.8% over 10 years. So they will be paying twice what they borrowed.

They are 80 and 75 years old respectively.

Basically, BIL got a kitchen with these people, recommended it to PILs but instead of shopping around they signed there and then because "he seemed like a really nice man". (Give me strength)!

Obviously we are now trying to help them sort this out. FIL is in poor health and has literally been in tears over this tonight. MIL makes matters worse by never listening to sense. I have said that I will call the company tomorrow and cancel the agreement and the kitchen (although the agreement they signed for the kitchen said 7 days to cancel and today is day 7) but I'm hoping to deal with this is a civilised manner and get a result. I know a wee bit about consumer credit law from the net and they haven't received a cancellation notice from the company yet so are okay there.

Any advise for my call the boss of this company tomorrow?

Sounds like sharp practice to me, ring trading standards first.

they told an assortment of lies too - like

1. the interest they will be paying will be just over the amount borrowed - it's nearly five grand FGS!

2. No penalties for early repayment - oh yes there are.

3. Didn't tell them it was high interest rate - 19.8% apr

Kbear Where were they when they signed the agreement? I BELIEVE that if they signed it in their own home the cancellation terms are a MINIMUM of 10 days, whatever the paperwork says.

Find out who runs the credit company (unlikely to be the actual kitchen company) ring them and say that these elderly, vulnerable people were 'persuaded' to sign this agreement. Lay on the elderly and vulnerable with a trowel.

If the finance company won't budge, ask if they would like the press to know about tactics used by their agents (which is what the kitchen company are).

They will probably rescind the agreement.

I think we are okay on the credit agreement because they haven't sent them a cancellation notice which they have to do with the paperwork.

They have paid £500 deposit though and the company's paperwork says they can only cancel within 7 days which is today. MIL tried to cancel today and they talked her out of it so I am going to ring tomorrow. The manager sounds like a bully but I can handle him but I want to do it the right way not lose my rag because I think you can get a result that way. DH wants to kill him of course!

And they were at home when they signed.

A salesman's dream that pair!

Watchdog love stories like this. So do Which.

They do have a cooling off period - but think this may be 7 days. If they've not sent the agreement through though, not sure.

That's my trump card Hunkermunker! Hopefully it won't come to that.

Thanks for your answers everyone - feeling stressed about this and wish I could ring now and get it over with.

Sad when an 80 yo man who fought in WW2 is in tears over an effing kitchen salesman.

bump

Oh no! Good luck, let us know how you get on.

I've taken this over for the PIL's - they are so stressed. They want to cancel the kitchen but the 7 day period of cancellation ended yesterday so I am hoping to appeal to their better nature and make an exception. The deposit cheque has been cashed - we tried to stop the cheque yesterday.

I have just called the company but the manager isn't there until 1pm.

MIL didn't even realise she had signed a credit agreement! I think that part is okay because of the cooling off period etc but I'm just worried about being held to the kitchen contract.

FIL has a long history of heart problems - serious stuff, it's the last thing he needs and I am so worried about him.

Thanks for your support here - it's so nice to just ramble on when you're stressed out!!!!!

Try ringing your local Age Concern .

They can hopefully offer some advice and support. They have previously campaigned against sharp selling practices.

Kbear, I think your PIL are fine here. If you cancelled the credit agreement within the stipulated period of time, the linked sales agreement is automatically cancelled as well and any deposit paid must be returned by the company.

If the company refuses to do so, contact your local trading standards office as this is precisely the sort of thing they deal with. The company will be refusing to honour your statutory rights and trading standards view that very seriously.

Freckle - thank you (are you a lawyer?) - everyone, good news! I called Consumer Direct (god bless em) and they are referring the case to our local Trading Standards office. The relief was unbelievable. I got myself all het up and now I can't calm down!!!

They explained all about the linked agreement so I know we are okay. I have called and cancelled the kitchen and am following it up with a letter to finance co and kitchen co by recorded delivery cancelling it all.

Good news, Kbear. Did the kitchen co. refuse to return the deposit then? Is that why it is being referred to trading standards or are they just concerned about the salesperson's techniques?

I think the salesperson selling a 10 year loan at 19.8% apr to an 80 yo couple is what concerns them.

They said that the credit agreement once cancelled also cancels the linked transaction (ie the kitchen contract) even though the kitchen contract states that they only have 7 days to cancel.

The girl at the kitchen company said was I aware that the 7 day cancellation period had elapsed so they can't have their deposit back.

I said yes and that I was also aware of the Consumer Credit Act so that's not binding. She went silent and said her boss would call me!

Just shows that it pays to know your rights before you contact these companies. But it's disgusting that some companies seem to rely on people not knowing their rights.

Consumer Direct 08454 040506

in case anyone else needs it!

Well done kbear, good result!

It is shockingly bad and sharp practice isn't it?

It is, WWW, and the fear of not knowing your rights is sooooo stressful.

Thankfully DH went round to the PILs yesterday and discovered this mess (and luckily they have a wonderful DIL like me to sort it out for them!!!).

I am still a bit scared of getting the phone call from the kitchen boss man who is due back at 1pm. I called and left a message for him to call me, not my in-laws as FIL is ill, so he'd better not call them now. I hope he isn't a rant and raver but if he is at least I am armed with the facts!

If he rant's and raves, just put the handset down on the table so you can't hear what he's saying, then wait for him to go quiet (he will eventually, as long as you don't try to interrupt).

Then say "are we going to discuss this as civilised people, or shall I just take this through the legal channels"

If he goes off again, put the phone on the table agaain until he stops.
If he hangs up on you, write a very brief, terse letter, explaining that you are happy to take legal action to recover this deposit, unless he wishes to contact you again in a reasonable manner.

Treat him as you would a bullying small child. It usually works.

Unbelievable kbear. You are a bear star

I just called the MD of the kitchen company because he didn't call me.

He seemed very reasonable and agreed to cancel it and refund their deposit.

He did bang on about whether I understood what APR meant and I cut him dead with a nice definition of apr (printed from the internet!!) and told him not to insult my intelligence.

Alls well that ends well - got the result I wanted for the folks and another stressful morning in the kbear household is over!!!

Thanks all!