# theoretical question



## Deano (Jul 7, 2006)

if i was to buy goods on finance and the company i bought it off went into administration, could they make you pay in full for the goods or would you get off with it? reason i ask is we want to buy a sofa on the drip from land of leather but word is they're going bang. so if they can demand payment in full i'm not gonna risk it.

Ta

Dean.


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## mattsbmw (Jul 20, 2008)

Yes they can is the simple answer. This is then used to pay the creditors


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## R32rob (Feb 26, 2008)

Can they demand payment as its the finance company that owns the product until payment is complete isn't it?

I could be wrong.... I usually am! :tumbleweed:


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## philworrall (Nov 17, 2006)

Panama, this is a REAL question and not theoretical.


The administration will collect all monies owed...... sorrry mate you still have to pay up.


Phil


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## mattsbmw (Jul 20, 2008)

R32rob said:


> Can they demand payment as its the finance company that owns the product until payment is complete isn't it?
> 
> I could be wrong.... I usually am! :tumbleweed:


Even more so then, because the finance company buy the product from them then you pay the fianance company, so yes you will have to pay for it.


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## parish (Jun 29, 2006)

As said, the finance is a separate contract to the purchase. The big - really big - question you should be asking is should you be buying from a company that you know, or suspect, is going to go under?

IME furniture is hardly ever available from stock - and things like suites are often made to order with long lead times - so the risk is LoL (or the manufacturer) going under between paying the deposit and the suite being delivered.

I know you're going to say you'll pay the deposit with a Credit Card so you'd get it back, but I was reading about another retail company going down and the Administrator said most people who paid with CC would get their money back but it wasn't guaranteed. He didn't elaborate and I thought it was guaranteed so there is obviously some issue/loophole in that.

*Edit* LoL are already in Administration - and it doesn't look good - http://news.bbc.co.uk/1/hi/business/7824133.stm


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## Bazza155 (Aug 30, 2007)

I want to walk out with what I but now days.


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## 1animal1 (Aug 20, 2008)

if only this was true  , we'd have been praying for the banks to go down..... as said the finance company would pay the suite firm and so liabiltity would rest with the finance company...if they went bust then the administrators would view your debt as an asset and sell it accordingly to another firm for a premium, that new firm would then benefit from your interest payments - worth asking though lol


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