The request for funding often takes place and gladly for particular credit operations, such as the purchase of cars or furniture and usually the sellers themselves provide information in this regard. However, this is not a transaction that remains between buyer and seller, but a third party comes into play: the finance company. The buyer obtains the availability of the asset and pays a small part of what was agreed upon, the other party is anticipated by the financial company which will then request a repayment in installments with interest. Therefore, the purchased good is available immediately and is paid for gradually thanks to the intervention of these specialized companies.
When is it possible to request the cancellation of a loan and how to obtain it?
A necessity that can sometimes be indispensable is to cancel a loan. An important operation all the more so if the right causes exist to implement it.
There may be a case in which you are in the presence of a scam and the seller, for example, does not deliver the goods or even worse closes the cabin and shacks and disappears. In these particular cases, is the buyer obliged to pay the various loan installments or can he request the cancellation and repayment of the installments already paid?
The consumer code in Italy (Legislative Decree 206/2005) tells us that it is possible to do it only if there is an exclusivity between financial and seller, which is quite rare. Yet there is an important precedent of jurisprudence pronounced by the Court of Justice that has focused in the European directive 87/102 the need to protect all those who purchase through forms of consumer finance, as the weakest part in the three figures “buyer-seller -finanziaria “. The Court therefore established that if the asset is not delivered, the consumer has the right to interrupt the financing and request the repayment of the amount paid to the financial institution, regardless of the existence of an exclusive relationship between seller and financial, since, although being two separate contracts, they refer to a single transaction and the loan no longer has any reason to exist in the event of non-delivery.
It is good to do some operations before proceeding, eventually, to a real legal action against the financial company. First of all, the seller must be sent a letter of formal notice to comply with which he requests delivery of the contract within a reasonable time (usually fifteen days). Later, if the seller does not proceed, another letter of “default on the debtor” is sent. The letters must be completed with the assistance of a lawyer and sent both to the seller and, for information, to the finance company.
After sending the letters, and therefore also informing the financial institution of the situation, it is possible to try to reach an agreement with the latter for a suspension of the installments pending the fulfillment of the seller, or, if he did not want to, by sending a letter for termination of the contract due to supplier default.
If the financial company will respond negatively to all requests, then it will be advisable to take legal action against it requesting the cancellation of the loan and the return of the amount paid up to that time. In all phases, it is essential to be assisted by a lawyer.