Supplier agreed a refund but I've not had it

[debbiemain]

Hi everyone. This is my first time on the site and I'm looking forward to looking around it. The reason I came across you is because I've hit a brick wall and really need some help. I recently paid a deposit for a service but the company really messed me around and I felt very concerned about their professionalism. So, I complained and they wrote and said they would gve me my deposit back. However, this has not happened and I doubt it will. I'm wondering if the refund agreement is binding? I'm thinking about initiating some sort of proceedings, but don't know if I can simply argue that their action in agreeing a refund is enough to show breach of contract (or do I have to prove this)? Any thoughts or ideas very welcome.

[Bill-K]

Re: Supplier agreed a refund but I've not had it

Hi, and welcome to you, Debbie. This is not my area, and I'm sure you will get some more learnéd advice from others, later. Meanwhile, have a read through some of the threads which might seem to be pertinent.

If they have written to you promising to return your deposit, then that may not in itself be sufficient to guarantee that you will get the refund. However, I would keep that letter safe because I believe it is an admission that they have taken a deposit from you, and therefore an admission that they have entered into a contract with you.

Additionally, if they have promised to refund the deposit, I would say that it is also an admission that they did not fulfil the contract.

I think they should be reminded of this, and that you WILL refer the matter to a court if the deposit is not returned within a reasonable period of time. This will then cost them even more.

[enaid]

Re: Supplier agreed a refund but I've not had it

Can I ask how long you have been waiting fro the return of the deposit and also if you have given them a reminder of their promise?

[debbiemain]

Re: Supplier agreed a refund but I've not had it

It's been nearly two weeks and they did imply that it would be immediate. However, I have sent a couple of emails but not heard anything back.

[enaid]

Re: Supplier agreed a refund but I've not had it

Well tbh nearly 2 weeks is not long, I think I would be prepared to wait up to 28 days as I know they have procedures etc, it's not just a case of sending out a cheque. I would put it in writing if you are worried with a copy of their promise see what they come back with.

[debbiemain]

Re: Supplier agreed a refund but I've not had it

I think what I'm really trying to understand at this moment in time is whether agreeing to give a refund is enforceable.

Or can they change their minds and say that they were too hasty and no longer believe there are grounds for a refund?

If former, then it may be a simpler thing to argue. Better than having to go over all the issues that led to requesting a refund.

[bluebottle]

Re: Supplier agreed a refund but I've not had it

I've had this sort of thing in the past. Where a refund is offered or given due to a breach of some obligation in the performance of a contract, it is due immediately by the method of payment that was originally used. This means that a cash payment must be refunded in cash. A trader cannot fob you off with a cheque in such circumstances. That is an offence under Section 2(1)(b), Theft Act 1978 (Inducing a Creditor to Wait for Payment).

Traders, mainly the larger ones, will try any way they can to either avoid payment altogether or delay payment for as long as they can. They know what they are doing is illegal, but they rely on people not knowing the law. Then again, they don't know LB.

My advice is to report this to Consumer Direct on 0845 4040506. This will ensure your local Trading Standards department get to know about it and relevant departments at the OFT know about it, too. You will need to send this firm a letter giving them 14 days to pay before considering legal action through the Small Claims Court. Add any costs you have incurred dealing with this to the refund. Unless you paid by cheque, DON'T let them offer you a cheque. Be firm and tell them any refund MUST be by the original method of payment, i.e. cash in cash, card debit by card credit.

Let us know how you get on.

[debbiemain]

Re: Supplier agreed a refund but I've not had it

Thank you for that. Really useful to know about and I will look into it and let you know the outcome.

Just to clarify a point, you say that "where a refund is offered or given due to a breach of some obligation in the performance of a contract .. "

From your past experience, did it matter if they agreed to the refund BUT DID NOT explicitly say this was because they breached the contract?

Being a service not goods situation, it can get a bit subjective. However, as Bill-K said in an earlier post, I'm hoping that offering the refund could be seen as their admission that they did not fulfil the contract.

[debbiemain]

Re: Supplier agreed a refund but I've not had it

Just as an update, I have found out that because the payment was made by credit card I can make a chargeback request under an internal procedure offered by certain card issuers. The other similar and legal option is a claim under Section 75 (of the Consumer Credit rules or something?) but there are exceptions that I fall into unfortunately.

As I understand it, chargeback can apply if goods or services are cancelled and the seller agrees to provide a refund and this is not received. The cardholders card provider contacts the sellers cardholder for the refund. The seller can defend the claim but given that my seller agreed in writing and have no refund policy that states any terms on how long etc. I can't see how they can argue against it.

The card providers offer useful advice to sellers on good customer service so that they can avoid chargebacks. I think my seller should read these - they were appalling !

So, hopefully this should work. It's not a legal solution but if I can at least see my money returned safely I shall be happy.

Thanks to everyone for their advice - it has helped to have a place to discuss the issue.

[Bill-K]

Re: Supplier agreed a refund but I've not had it

Nifty move, Debbie. I say go for it - and make sure you have scanned that letter, for when they tru and squirm !!! :beagle:

[bluebottle]

Re: Supplier agreed a refund but I've not had it

If the firm you're dealing with put the refund in writing, they have committed themselves. Also, they are subject to the terms and provisions of the Supply of Goods and Services Act 1982. Either way, it sounds like they've backed themselves into corner and now can't get out.

[enaid]

Re: Supplier agreed a refund but I've not had it

Info on the Charge Back Scheme, be as well armed as you can on it as some bank staff will have never even heard of it, or tell you they haven't lol

Chargeback on credit and debit cards - Your rights when paying by credit card - Sale of goods - Which? Consumer Rights

[debbiemain]

Re: Supplier agreed a refund but I've not had it

That is exactly what i have found. I ended up having to google the bank's guidance notes myself so that i could then tell them what i wanted!