Financial obligations post liquidation

[Bernice]

Hi I really hope someone can help.

I signed up to have solar panels fitted. The contract was signed to have 17 panels, and the credit agreement was for an amount that reflected this.

At the survey, we were told they could only fit 16, and we were given a new contract to sign to reflect this.

Then at fitting, the fitters were only able to attach 13 panels and we were told we would get a new contract to sign to reflect this.

Then, two days later, the company went into liquidation.

I chased the credit company, to find out what was happening as the credit agreement we signed was for the contract for 16 panels, and the fitting of the same, which is not the product we received.

They said "I have checked your account with us which is currently Executed and as such will now not be paid out as Solarlec are in liquidation, we cannot complete your loan"

This was six months ago. This week a letter arrived from the credit company saying our loan was live.

I have questioned this and the loan company say they have now paid the loan amount out to the liquidators and are now pursuing us for payments.

Where do I stand regarding this, as the loan does not reflect the product we received and do not have a contract for?

[des8]

Re: Financial obligations post liquidation

Hi and welcome.

So as the loan was completed for installation you would be liable for the payments, as the liquidators would require payment of all outstanding debts to Solarlec.

HOWEVER

If I was in your position I would be writing to the Finance House and quoting the Consumer Rights Act 2015.
Under that piece of legislation you have the right to a reducton in price (sec 24)for delivery of the wrong quantity (sec25 .1) or goods not as described (sec 11)

By virtue of The Consumer Credit Act 1974 Sec 75 the finance house is jointly and severally liable for the breach of contract.

I'm tagging @R0b for his input as well

[R0b]

Re: Financial obligations post liquidation

Hello

I agree with des, if the loan was a 'pure' loan for the installation of the solar panels then you are still liable to payment of that loan. Because the company is now in liquidation your rights for breach of contract will be against them only and if you did not register your interest as a creditor or notify the liquidator of the breach of contract then you could not make any claim against them, though most times your unlikely to get anything from a liquidated company anyway.

As for quoting the CRA, you have mentioned the credit company but I am not sure whether this is the credit card company you used to pay part or all of the money or whether you refer to the credit company as in the company who loaned you the money. If you didn't pay anything by credit card then I don't think there is any recourse here other than to pay the loan off. If you did make a payment by credit card then as des has pointed out they would be jointly liable.

If the loan was a conditional sale agreement then you also may have recourse against the finance company as they would own the goods until all payments have completed.

[Bernice]

Re: Financial obligations post liquidation

Thank you so much for the replies.

We paid £500 deposit from our current account, and signed up for a credit agreement with Shawbrooke Bank for the remainder (around £9k).

They are the ones who said they couldn't execute the loan because the company had gone into liquidation. Now all of a sudden the loan has gone live.

I spoke on the phone to someone in their Complaints Dept and pointed out that technically we would be due a rebate as the loan was for more than we got, and they said they would pay this to us, as well as having paid out the full loan to the liquidators? Does this sound at all fishy?

Do they usually put themselves out of pocket, or are they hoping we'll take the full term to pay them off and end up paying loads of interest? Or are they likely to have bought the debt for less from the liquidators in the hope to push us for the full amount? I don't have much experience with credit agreements and don't know how it works if a credit company is dealing with liquidators.

The chap on the phone was quite sketchy about it, and even said "well do you want us to take the panels away?". He said they could send someone out to assess how much we would be due back, but I'm tempted to ask for a more itemised contract, as I don't see why they should charge us for labour for installing 16 panels when they didn't install this many.

[des8]

Re: Financial obligations post liquidation

I would think that when the company went into liquidation Shawbrooke had to suspend the account.
Eventually the liquidators would have approached Shawbrooke for the payment due to the installers.
This would have been one of their duties in collecting in assets of the installation company.
The installers paperwork as given to the liquidators would have been for the installation of 16 panels as there possibly had not been time to amend the paperwork to reflect the fewer panels. This account would have been met by Shawbrooke.

The finance house have agreed to pay you a rebate to take into account the lower amount they should have paid.
IMO you should not actually receive a rebate, but should push for a new loan contract reflecting the lower amount that should have been paid to the liquidators.
THe rebate/reduction in loan agreement will have to be agreed and take into account the cost of panels (and installation charge if that was itemised seperately on your quotation).