Emoov customer whose sale fell apart as firm went into administration sent ‘deferred payment’ bill

A seller who instructed Emoov two months before it entered administration has received a letter asking her to settle her deferred payment bill.

When Emoov went into administration last December 3, administrator James Cowper Kreston said the site had 5,000 properties either listed or sold subject to contract.

It said that around 80% had paid upfront – in total, around £1.5m. These former customers have already been told that they are unlikely to see repayment, as the preferred creditors will be unpaid staff.

However, the figures suggest that a number of former Emoov customers who have not yet paid are being sent bills, and this could continue over the summer.

The seller who contacted EYE said that in choosing Emoov she had been given the choice between upfront and deferred payment, and had opted for the latter, which she thought would be payable on completion of the sale.

Shawbrook Bank, with whom the deferred agreement was in place, has now written to the vendor asking her to pay up.

She says she had only received one viewing through Emoov, but subsequently had an offer which she accepted.

As Emoov did not then reply to any emails, she lost the sale, and also the property she had put an offer on.

We have approached both the administrators and Shawbrook Bank for comment.

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7 Comments

  1. dantheman78

    Picked the cheapest she could find, deferred payment (just a loan), it’s callled natural selection

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  2. Jrsteeve

    Got what she paid for. Oh wait.

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  3. CountryLass

    I’m assuming that the contract states it was on completion of sale, or with a withdrawal fee. As the sale did not complete, surely she should only pay a withdrawal fee?

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    1. ALOnline

      Deferred payments are not payable on completion, rather at the end of the deferred period. The customer is mistaken or has been deliberately misled, which does happen.

      A deferred payment is just a loan that is paid back within a certain period of time. As soon as it is taken out, Emoov no longer has anything to do with it and doesn’t communicate with the loan provider at all.

      A direct debit is taken out of the customer’s bank account after a set period of time, sale or no sale, hence why it is happening now despite the administration – because it’s still just a loan.

      It’s exactly the same as if the customer paid upfront, but paid that fee with a personal loan from Wonga. Wonga doesn’t care if the property hasn’t sold, they have a completely separate contract with them.

      The latest iteration of Emoov has a monthly repayment option instead to stop these nasty surprises.

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      1. CountryLass

        Ah, I’d misread, I thought she had said it WAS payable on completion, not that she THOUGHT it was on completion.

        Well, that’s her own fault really, although she probably expected that as the company went bust, she didn’t have to pay. She basically thought she was getting a No Safe No Fee contract, so unless she can prove she was deliberately mislead, she doesn’t have a leg to stand on!

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  4. mrtickle

    I admire the audacity of Emoov to ask for payment. Clearly Mr Quirk did rub off on the business’s approach!

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    1. PeeBee

      It isn’t Emoov asking for payment, mrtickle.
       
      They sold/transferred the debt to Shawbrook Bank, who are now chasing their money.
       
      Emoov had their cash counted, banked and sp****d up against the wall by November.

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