Who is the Creditor?

[julian]

When a trader offers credit , e.g. one year interest free credit, the loan is not normally advanced by the trader but by a finance house, and goods are not ordered or delivered until the loan is approved, which may take weeks.

Under CCA regs, who is the Creditor for cancellation rights? The application is filled out by the trader on the trader's premises, and the trader isn't the provider, but the receiver of funds from the finance house. If the trader is not the Creditor as the purchase price is paid by the finance house, and the trader gets a commission, is there a cooling off period? Logically, documents were not signed on the Creditors' premises.??????????

The loan agreement must be approved before goods are delivered, so if not approved, the transaction is declined by the trader unless alternative payment I made.
During the loan approval process can the application for credit be withdrawn by the customer, as no Agreement exists? Otherwise it will be an unfair relationship, won't it?

[Never-In-Doubt]

Re: Who is the Creditor?

When a trader offers credit , e.g. one year interest free credit, the loan is not normally advanced by the trader but by a finance house, and goods are not ordered or delivered until the loan is approved, which may take weeks.

Under CCA regs, who is the Creditor for cancellation rights? The application is filled out by the trader on the trader's premises, and the trader isn't the provider, but the receiver of funds from the finance house. If the trader is not the Creditor as the purchase price is paid by the finance house, and the trader gets a commission, is there a cooling off period? Logically, documents were not signed on the Creditors' premises.??????????

The loan agreement must be approved before goods are delivered, so if not approved, the transaction is declined by the trader unless alternative payment I made.
During the loan approval process can the application for credit be withdrawn by the customer, as no Agreement exists? Otherwise it will be an unfair relationship, won't it?

All you need to do is read the PC World / Durkin debacle to establish the answer you seek : --> http://www.bailii.org/uk/cases/UKSC/2014/21.html

In a nutshell,

Mr Durkin has fought this battle for many years. He purchased a laptop computer from PC World in Aberdeen for £1,499 on 28 December 1998. He entered a debtor-creditor-supplier agreement with HFC Bank plc under section 12(b) of the Consumer Credit Act 1974 to fund the purchase, apart from a £50 deposit which he paid.

[julian]

Re: Who is the Creditor?

Ta.

This verdict places both the creditor and the supplier equally responsible, and ties the voiding of the purchase intrinsically to the loan, as if as one where a fault is present in the goods purchased via the loan.

If the purchase is put on hold by the supplier until the loan is approved by the finance company, the purchase is dependent on the approval of finance. The transaction will not complete until credit checks are made e.g. Mon-Fri and not New Year, and credit checks dictate APR and repayment schedule. Consequently, the customer/debtor does not know total cost or success of purchase, until the financial institution returns the application/agreement form with the blanks filled in.

[Never-In-Doubt]

Re: Who is the Creditor?

As with any loan you will be entitled to a cooling off period of at least 14 days - and your contract is (and remains) with the creditor throughout - the retailer is just a medium like an introducer.

Any complaints or cancellation is via the creditor. In the case of HP then usually you'd agree to return goods and the store would contact the finance arm and confirm safe receipt then the finance company can cancel the agreement / credit. However there's a lot of ambiguity over personalised items which can't be returned, sofa's from SCS or a Laptop, for instance could be argued that they'll devalue after usage (or that they were made to order) so any cooling off period may be null and void long before you ever signed an agreement.

In essence it's best to avoid HP and use a credit card as you get s.75 protection.

see TS point of view --> http://www.tradingstandards.uk/cgi-b...v0011-1011.txt