Hi

Have seen similar posts about being able to get deposit back if its a 3 party agreement (ie customer, dealer, finance co) but does a bank (providing a straight personal loan) count the same as a finance house ?

My situation is as follows:
1. I'd informed dealer of type of car that I was interested in.
2. A few weeks later dealer rings and says one is in group stock and a refundable deposit would ensure this car is put aside for me pending inspection
3. Give dealer credit card details and agree £250 deposit
4. A few days later informed that car is at local garage but they haven't taken the £250 deposit as they'd wrote the card details down wrongly
5. Test drive car & like it
5. Mull over proposed deal over few days and get offer in principle from bank & finance co's for loan
6. Agree deal with Salesman over phone and provide card details again for £500 deposit (11/10/07)
7. 2 days later big shock, my financial situation has changed and I will no longer have the amount of cash required that I was putting into the deal
8. Emailed salesman informing him of scenario (as he wasn't in) on 15/10/07
9. Spoke to salesman today, bit vague on the deposit being refunded and asked that I call tomorrow when the manager is in

Am I right in thinking that the Distance Selling rules also apply as I paid the deposit over phone via credit card ?

Many thanks for you help !

Hi --- Although your circumstances differ somewhat to a normal credit agreement, you have in fact paid by credit card so this now means that there is a partial credit agreement in place, which you are not obliged to proceed with. This is also reinforced because you paid the deposit over the phone, therefore the distance selling regulations do apply to this transaction.

You have Seven working days in which to legally cancel this agreement and have your money refunded as of right, you need to cancel this agreement in writing within the Seven days to exercise your right to cancel the agreement and have your deposit refunded under the distance selling regulations. Normally I would advice doing this by recorded delivery, but due to the current postal problems I would recommend that you hand deliver this letter in the company of a witness (dated copy retained by yourself) do it tonight, deliver tomorrow. See article below and scroll to, "Right to cancel".

 

http://www.out-law.com/page-430#card

Thanks Conmankiller !

I have emailed the manager at the dealer now, would this count as in writing ?  If not I'll follow your advice and drop a letter in tomorrow in person.

I'm hoping it won't get complicated as its not a 'back street' kind of garage and if they are difficult then they'll be losing a future 25k sale ( I do intend getting the same type of car, just not as soon as hoped).

Many thanks for the advice.
 

Hi -- PP --- If you scroll up to the next paragraph in the same article, " Written confirmation and additional information." It does state that cancellation must be in writing i.e. email is acceptable, so I guess email is okay as well, after all it is dated and timed, you could ring them to also confirm they have received your email. Also asking them if they will simply return the deposit to your credit card.

Although when I absorb it thoroughly on second thoughts, I would not risk email I think that is for the supplier of the contract. You would be safer making sure they have a copy delivered in writing, IMO.

Hi

I'd emailed the manager this afternoon whilst at work and also included the original email to the salesman from the day before.  I also made sure my email client informs me of successful delivery.

But, as you say, I'll call them tomorrow anyway and see how I get on. Letter drafted and ready just in case :-)

 Cheers.
 

Nice one --- best to err on the side of caution these days !

Hi All

Todays update - manager recevied my email and called this afternoon.  Stated that company policy is not to refund deposits, were I to purchase a car from them some point later the £500 would be carried over into that deal.  I said that whilst understanding this the Direct Selling regs applied due to the credit card transaction being done over the phone, and also there is nothing in writing or signed as I'd agreed a price with salesman the same way.  

He seemed surprised that I knew this and asked if I'd taken advice, his attitude then changed somewhat and he effectively tried to lay a guilt trip on me for not being able to go thru with the deal after all the hard work they'd put in finding me a car blah blah blah - yeah right!  I reiterated my rights and he said that he'd talk with trading stds to check this was the case and if so give the refund.   

I'll give him until mid day tomorrow to before chasing him again and will also see if Consumer Direct (who were really helpful) can provide some hard evidence of my rights for him as well.  I also faxed over a formal letter to him and got proof of delivery off the fax machine, as work took me 70 miles away today so couldn't drop in in person.

Re the Working Days - is this Mon thru Friday or working days that the garage is open (as they are 7 days a week) ?  Deposit was placed at 4.30 last Thursday (11th Oct).

 
Cheers


 

doh ! "Direct Selling Regs" of course I mean "Distance Selling Regs" !

Hi --- You are well within the Seven working day period allowed, Sat & Sun are not regarded as working days, even if the garage is open. Just remind him nicely that at least the courts do not regard Sat & Sun as working days, that will surprise him even more. : - )  

All the days since the 11th, until today only make Seven in total, inclusive, so you have cancelled on the fifth working day as the weekend does not count, your written cancellation now brings any agreement to a lawful end.

 

Hi - dealer has spoken with Trading Stds and says that Distance Selling regs do not apply to my case as I have visited garage in person, talked to salesman face to face and seen & driven the car.  He also tried to say that I had effectively agreed to purchase the car at the point where they took card details for a 'holding deposit' (point 3 in 1st post).

Worryingly, when I called Consumer Direct back again the advisor (a diffrerent one this time) agreed with them !!  I had explained the situation to them originally so am feeling confused now !

Garage is now offering 250 refund & keep 250 for future purchase.

 

Hi --- Right then, remind them about point 2 in your first post.

2. A few weeks later dealer rings and says one is in group stock and a refundable deposit would ensure this car is put aside for me pending inspection

 

They should refund the deposit if that's what they said, a verbal agreement is a part of the contract.

 

 

Also it seems that because you originally agreed a £250 deposit face to face, that they are trying to keep that part of your £500.

It would seem that the other £250 they are offering is because you then paid over the phone, therefore to some degree only £250 was agreed face to face and the other half they now want to return. It implies that they know they would be wrong to hold the full amount, perhaps the distance selling regulations do apply to the other £250 because it was paid over the phone ?

Hi - thanks for the quick reply !

Sorry, should have clarified, in point 3 the card & holding deposit were discussed and given over the phone.

I've just spoken to the same Trading Stds guy that they've contacted and he's looking into it further.  The doubt seems to be around the fact that I have visited the garage, seen the actual car in the company of the salesman and that the garage do not trade online in a way such as a Amazon or in the case of cars, Broadspeed or Drive The Deal. 

I mentioned to them about Small Claims court and he didn't seem bothered.

I really must start to do some work soon rather than think about this all day !!

 

 

Hi --- PP --- Me too got lots to do....... but do not give in without a fight, they initially agreed to refund your deposit and that overrides anything else said here, therefore they should return it in full.

Keep me posted ---- Good luck.

Hi Conmankiller

Local trading stds guy who garage spoke to has just got back to me.  His opinion is that my case for Distance Selling regs is undermined due to the fact that some face-to-face contact about the car in question has taken place.  If I'd seen the car on their web site only and then paid a deposit over phone it would be more clear cut.  Clearly the garage and myself have a different opinion on the regs when it mentions "up to and including conclusion of contract".  For me that was last Thursday over the phone, for garage its a lot earlier - unfortunately the rules aren't explicit enough and when trading stds have doubts that makes it worse !

Have to mull it over .....

 

 

Hi there

This is the first time I post here.

I have some similar situation now. We went to a local car dealer last Sunday and paid £250 deposit by credit card to agree to buy a used car not at the showroom. The saleman agreed to deliver the car coming Saturday for us to view the car and to be paid the balance outstanding. We have signed a purchase agreement before we left the showroom.

Now I found another similar car for £1k cheaper in another different dealer. Am I have the right to get the £250 back under Distance Selling rule and Consumer Credit? because we haven't seen the car at the time of agreement signed.

Any comments are much appreciated !!