Natwest Refuses Chargeback

leecasey
leecasey Posts: 18 Forumite
in Credit cards
Hi, I put a holding deposit down on a bike for £100. I said in email I would want a refund if I didnt like the bike when I arrived to see it. They phoned me to reply and agreed I could have my depsoit back for whatever reason what so ever.

After seeing the bike I would like the refund but they are refusing.

I spoke to Natwest to initiate a chargeback but they said this does not qualify unless I have it in writing that they would refund me. I do not believe this to be correct?! Are Natwest pulling a fast one?

Thanks
Lee
«134

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    First Anniversary Photogenic Name Dropper First Post
    It sounds correct to me. Natwest would refund you if the supplier hasn't lived up to his side. But they need to know that failing to refund a deposit counts as that, as many retailers would operate a non-refundable deposit policy. What does it say in any of the documentation, website etc?
  • moonrakerz
    moonrakerz Posts: 8,650 Forumite
    First Anniversary Combo Breaker First Post
    leecasey wrote: »
    Are Natwest pulling a fast one?

    No - but they probably think that you are ! Can you PROVE that they offered to refund your deposit ?

    I presume you paid this on a Visa card ? You have just found the major flaw with the "chargeback" scheme - the bank decides when it will or will not pay out. The whole thing is just covered by Visa's code of practice, not by Law.
    The biggest problem with "chargeback" is that many customers try and use it in cases of "buyer's remorse" (qv) - the banks, quite understandably, do not wish to subsidise people's rash spending decisions.
  • leecasey
    leecasey Posts: 18 Forumite
    there is nothing on the website regarding deposits. I have no paperwork or anything like as it was done as a holding deposit before I even got to the dealer.

    It did raise my suspsicions when they didnt reply via email and called me instead but to be honest I thought I'd be covered if I put it on my credit card.
  • leecasey
    leecasey Posts: 18 Forumite
    moonrakerz wrote: »
    No - but they probably think that you are ! Can you PROVE that they offered to refund your deposit ?

    I presume you paid this on a Visa card ? You have just found the major flaw with the "chargeback" scheme - the bank decides when it will or will not pay out. The whole thing is just covered by Visa's code of practice, not by Law.
    The biggest problem with "chargeback" is that many customers try and use it in cases of "buyer's remorse" (qv) - the banks, quite understandably, do not wish to subsidise people's rash spending decisions.

    Well S.75 states it covers ANY purchase when it goes wrong. It was done on Natwest Mastercard not Visa.

    I have an email I sent to them saying I would only pay deposit on the basis it would be refundable but as stated they called me back rather than email. Sneaky! - or maybe just so they could take payment straight away. Either way it was verbally agreed and I'm not sure this matters or not.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    First Anniversary Photogenic Name Dropper First Post
    The verbal agreement won't count for much, as it's their word against yours. And normally, deposits are non-refundable, due to their nature (ie you're stopping them selling it to anyone else).

    If they won't confirm it's refundable, you'll either need to take the hit or see if they have another bike you could put it against.
  • moonrakerz
    moonrakerz Posts: 8,650 Forumite
    First Anniversary Combo Breaker First Post
    leecasey wrote: »
    Well S.75 states it covers ANY purchase when it goes wrong. It was done on Natwest Mastercard not Visa.

    NO ! Sect 75 does not "cover any purchase when it goes wrong" - please read up on it !

    "Section 75 does not, in itself, provide grounds for a claim against a supplier. Customers must have a valid claim of breach of contract or misrepresentation under other law, such as the Sale of Goods Act or the Misrepresentation Act. If they do, then they have a like claim against the card provider for the full amount of the claim."

    Financial Ombudsman:

    can you PROVE any of the above ?
  • nomoneytoday
    nomoneytoday Posts: 4,866 Forumite
    First Post First Anniversary Combo Breaker
    What about the Distance selling regs?
  • leecasey
    leecasey Posts: 18 Forumite
    Oh well it's only £100. Live and learn. Thanks for your input.
  • dazza.mk
    dazza.mk Posts: 1,927 Forumite
    First Anniversary First Post Combo Breaker
    nomoneytoday wrote: »
    What about the Distance selling regs?

    Agreed, you have full rights to cancel under the distance selling regulations upto 7 days from receiving the goods (which sounds like you met), In this case I would ensure that Natwest know you don't want to do a chargeback, rather a Section 75 claim based on the retailers failure to honour your rights under the distance selling regulations.
  • ICan'tStandIt
    ICan'tStandIt Posts: 455 Forumite
    I agree with those that say in this case a chargeback is not appropriate.

    You bought a bike and you got a bike and you have no paperwork to back up what you said was promised about the deposit.

    You could try pushing the section 75 / distance selling regulations. For this sort of an amount Natwest might just cave in and give you the money. It's worth more to you than it is to them, so it is worth causing a fuss and taking up their time in the hope they cough-up.
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