have Evans Halshaw broken the law?

[Ozwald2000]

Back in 04/2018 we bought a car from Exeter EH. After many problems and let-downs we finally agreed terms on our new ‘used’ car. We had previously paid 2 deposits for securing two vehicles (to choose one from). The deposit amounts were ‘transferred’ or rather kept - to go towards the cost of the car and an extended 24 month warranty. As the two deposits were on separate profiles (my wife and I) - the said they would transfer this and put it toward the warranty. Anyway - after our car breaking down last week - we have found out they cancelled the warranty back in 05/2018 because their records showed we didn’t pay enough. We paid an additional cost / £195 / to make up the deposit difference for the warranty and got a receipt for the 24 month warranty. at no point we’re we told they had cancelled the policy. Effectively keeping our money and scrapping our policy. We only found out after having a mechanical problem with our car. Which of course is now not covered because we have no warranty. Have they done anything illegal by retaining funds for services offered and agreed and subsequently withdrawn without notice?*

[ukcommando]

If you have the evidence that you paid the money, and you clearly have a reasonable expectation for what you and your wife expected, then it sounds like you can support your side of the contract you believe was formed. EH would struggle to rebut that I think, as they couldn't explain why they kept the money without it looking like they effectively stole it from you. Did you not have paperwork at the time of purchase showing that you had a warranty with the vehicle? If so, I think you should demand a meeting with the manager, explain that they are in breach of contract and that you intend to take legal action for their criminal misappropriation of the money. Obviously your aim is to get them to repair anything that should have been covered, and to come up with some way of covering the expected remainder of the warranty. If they won't play ball, then you're likely stuck with getting the car fixed at a different garage (as you clearly can't trust them) and then going to court to reclaim it, which isn't great for you. It will likely come down to whether they believe you're serious about legal action or not. There's no doubt that you're in the right, but it comes down to your will and stamina...
Many years ago, my Father who was then retired, bought a car second hand from a main dealership. When the diesel pump then failed many months down the line, it transpired that the warranty had just expired, because they'd put the wrong duration down in the paperwork to the Warranty company, which was at odds with the date on the receipt they gave my Dad.* They did their best to press him into paying for the repair, till I heard about it. I had some very firm words with the Service Manager and made it clear that we'd go to Court if necessary. They immediately backed down when they realised I was serious.* I wasn't rude, just calm and very firm.