Shire Leasing Rijo42

[KET]

Hello I signed an agreement with Rijo and shire leasing in March 2015. I agreed to pay £208 per month for a coffee machine for 62 months. As I type this I understand how crazy this sounds that is £15,000 for a coffee machine. I have been paying for two years and have now closed the business. I was under the impression that when I closed the company a Ltd company the debt would go with it but it seems in the small print it says I am liable. I now have no use for the coffee machine which if I sold I would get very little for and I still owe just short of £10k. It makes me desperate to know I was so stupid but the mark up is extortionate almost twice the original price I was told. Is there anything I can do I simply cannot afford to pay the balance over the next three years

 

[Lisa Thomas]

In the first instance I would recommend you instruct a solicitor to check that what you signed was legally binding.

I can recommend someone if you like.

If you are unable to keep up the payments and unable to reach a settlement plan (get the same solicitor to help you with this) with the creditor you might need to consider an insolvency procedure.

 

[Big Jase]

Hello I signed an agreement with Rijo and shire leasing in March 2015. I agreed to pay £208 per month for a coffee machine for 62 months. As I type this I understand how crazy this sounds that is £15,000 for a coffee machine. I have been paying for two years and have now closed the business. I was under the impression that when I closed the company a Ltd company the debt would go with it but it seems in the small print it says I am liable. I now have no use for the coffee machine which if I sold I would get very little for and I still owe just short of £10k. It makes me desperate to know I was so stupid but the mark up is extortionate almost twice the original price I was told. Is there anything I can do I simply cannot afford to pay the balance over the next three years

We also signed with Coffee Boss, 3 years outstanding, machine broken, no service just financing. The lease was sold as fully serviced but Shire leasing says it's just finance, so pay. They've enabled scammers to refinance and drop their companies. Shire leasing keeps facilitating this with impunity. It's a complete shame, email me at [email protected] as we'll be taking them to court. The UK government bank finances them which is preying on small businesses and sole traders, somewhat ironic

 

[Mark T Jones]

In reality the PG you signed (or didn't sign) is unlikely to be in small print - whilst I don't deal with Shire, the .any lenders I have dealings with always present it as minum A4 document, sometimes as many as 7 pages- all clearly identified as a personal guarantee

As a start point, ask the to send copies of the guarantee you signed

 

[Gyumri]

I would stop paying and state that you want a full refund or else you will apply to the court for the return of all the payments you have so far made. I think the application under section 137 may be £255 - but check.

Consumer Credit Act 1974

www.legislation.gov.uk

Give them 7 days notice of your intended application which should allow them time to wake up and smell the coffee.

 

[fisicx]

@Gyumri - that’s for B2C. This is B2B.

 

[Gyumri]

@Gyumri - that’s for B2C. This is B2B.

Ah yes!

I closed the company a Ltd company the debt would go with it but it seems in the small print it says I am liable.

If the OP has signed a personal guarantee and if it is buried in the small print I can't see that being enforceable. Even if it is a clear term as a coffee machine costs about £500, then £15,000 for guaranteeing the hire charge would sound to a judge like a scam ie the personal guarantee clause will be regarded as a penalty clause and therefore unenforceable.

So I would tell them to collect the machine and stop paying.

What is a penalty clause in a contract?

The law on penalty clauses in contracts has changed in recent years. Discover what a penalty clause is and where they stand in 2022.

juro.com

 

[MikeJ]

This thread is seven years old, so the OP is long gone now...

 

[Mark T Jones]

This thread is seven years old, so the OP is long gone now...

Well spotted!

 

[WaveJumper]

What is it they say "wake up and smell the coffee" OP probably left the country now and being sort by international law enforcement

As always be nice to know how these issues end especially for those coming to the forum with similar problems

 

[fisicx]

This thread is seven years old, so the OP is long gone now...

Indeed they have but @Big Jase opened the thread again with a new complaint.

 

[bovine]

Big Jase is complaining about Shire, but it doesnt appear their issue is with them. When we did systems on leasing, we generally wouldnt include year 2 and 3 service/support because of the additional cost to the customer in interest. Some wanted it for peace of mind, but most would just want to be invoiced in the subsequent years. Interest cost over 3 years was something like £400 per £1000 spent if i remember correctly. The problem Jase has is what was originally sold - did the coffee co ever say support/service was included for year 2 and 3 (assuming year 1 is part of a normal warranty, but again the terms agreed to would cover this)

We moved away from pushing leasing because at the time the only ones who seemed to want it were the ones who wouldnt get it approved.

A professional barista type coffee machine is going to cost a lot more than £500 btw!

 

[Mark T Jones]

Big Jase is complaining about Shire, but it doesnt appear their issue is with them. When we did systems on leasing, we generally wouldnt include year 2 and 3 service/support because of the additional cost to the customer in interest. Some wanted it for peace of mind, but most would just want to be invoiced in the subsequent years. Interest cost over 3 years was something like £400 per £1000 spent if i remember correctly. The problem Jase has is what was originally sold - did the coffee co ever say support/service was included for year 2 and 3 (assuming year 1 is part of a normal warranty, but again the terms agreed to would cover this)

We moved away from pushing leasing because at the time the only ones who seemed to want it were the ones who wouldnt get it approved.

A professional barista type coffee machine is going to cost a lot more than £500 btw!

Both complainants seem rather unclear on what their actual complaint is or who it should be aimed at.

We have a saying 'when the customer starts complaining about the lease, it's a sure sign that they are struggling'. Whilst there is undoubtedly some miss-selling and bad practice in the industry, the majority of lenders are pretty tight & compliant on process & documentation. They are also very adept at pursuing PGs.

Interestingly, on your last point, I always tell equipment suppliers not to push leasing - it attracts the wrong customers and distracts from your core benefits. When it comes to payment terms, drop in that finance options can be available - but if they want to pay cash, grab it with both hands.