Deposit Paid but Credit Refused

CodeMonkey99

Hi

We recently paid a deposit on a new kitchen.

£X amount clearly marked as "Non Refundable" for the design phase which we were happy with.

Happy with the design we went further explaining that we would like to use the credit facility method of payment, for which they would need 25% of the total cost of the kitchen up front, this we paid (lots of £Xs) and then waited a week or so until we could visit and sign the credit facility documentation. We signed nothing at this point and were not informed of the 25% deposit being non-refundable - where as the initial design phase deposit clearly stated on the document that it was non-refundable.

When we visited we signed a document confirming the kitchen order and another one detailing that payment method as via the credit facility being offered by the firm, then applied for the credit and had our request refused. We've contacted the credit firm and received a pretty standard response as to why the credit was refused.

So we're now looking to get our 25% deposit back, they haven't refused yet but they are being a little cagey so I'd like a little advice up front if possible.

Would the fact that they were unable to provide the credit facility after taking the deposit make the contract void? It seems to me that they knew we wanted to pay using the credit facility - if they were unable to provide this then it is my opinion that they have failed to fulfill their side of the contract.

Any help appreciated.

[Deleted User]

CodeMonkey99 wrote: »

Would the fact that they were unable to provide the credit facility after taking the deposit make the contract void?

Not necessarily. They weren't to know that you would fail to meet the credit criteria. Payment is a separate issue to an agreement to purchase.

What do the t&cs say about the deposit? On the positive side, it doesn't sound, on the face of it, that they are refusing to refund you - I would have expected them to have said that clearly by now.

CodeMonkey99

Ts & Cs didn't mention refundable/non-refundable.

As the design phase deposit explicitly said "non-refundable" the assumption was that if the 25% deposit didnt explicitly say this then it must be different, i.e. refundable.

I also think there is a fair trading point here, we paid the deposit in good faith, the firm could not provide the advertised credit facility so the deposit should be returned.

forgotmyname

Its your side of the contract that says you need to pay for it not theirs. Their provider declined you so you need to find a loan elsewhere.

They maybe able to find you another provider but the interest rate maybe extortionate.

CodeMonkey99

Thanks - but by stipulating that the means for payment was by their credit facility means they have to provide the credit facility - they've failed to do that.

Arleen

People are giving you good advice here, i understand that this isn't one you want to hear but it is the real one. And unless explicitly specified otherwise in the contract then deposit is not refundable unless the party which received said deposit breached the contract. And they didn't, as I am more than sure that your contract doesn't stipulate that it's their duty to provide you with financing, heck I can guarantee that it says the opposite.

If you will go to talk with them with attitude you show here then they will simply show you the door and you can waive the deposit good bye. But if you will come with a bit of remorse and openness then maybe you can get longer term before the deposit expires so you can try and arrange some other form of financing.

tykesi

CodeMonkey99 wrote: »

they have to provide the credit facility - they've failed to do that.

Ha ha ha - and who's fault is it they've failed to do so?

Let me guess - in your eyes, it's theirs? (HINT - it isn't).

Just because you don't like the replies doesn't mean they're wrong.

CodeMonkey99

Well how lovely the last two replies were, I don't think I said anything about bad advice or had any kind of attitude - I was simply building upon the facts.

Before the deposit was paid the firm knew I could not/would not be going ahead if the credit application was refused, they had been informed of this numerous times but took the deposit regardless - to then say that I can't have my deposit back because credit was refused seems a little unfair to say the least, note that there are no bepoke customer specific requirements here and no services have been provided so they've lost nothing - if they choose to keep the deposit without the contract termination actually costing them anything then I would judge that as pretty shady practice - the firm isn't your local kitchen designer.

Anyway - I will wait to see, thanks for the helpful comments and not so much thanks for the not particularly nice ones.

rtho782

They may offer credit but that doesn't mean they have to provide the credit. You could get a loan or use a credit card.

I would say the agreement stands, although you'd expect normally for the credit to be arranged before the agreement signed.

Stevie_Palimo

You would like to think common sense would prevail in these situations and to pay a deposit for the plans only could have been avoided by using another Company, As for a secondary deposit to have the wok started and kitchen ordered then really to be an ethical Company they really should have implied that this is only started once a loan is approved or in place, Similar stance really by the actual shopper who should also verify that credit can be gained prior to handing over the second part of a deposit.

GingerBob_3

Arleen wrote: »

People are giving you good advice here, i understand that this isn't one you want to hear but it is the real one. And unless explicitly specified otherwise in the contract then deposit is not refundable unless the party which received said deposit breached the contract. And they didn't, as I am more than sure that your contract doesn't stipulate that it's their duty to provide you with financing, heck I can guarantee that it says the opposite.

If you will go to talk with them with attitude you show here then they will simply show you the door and you can waive the deposit good bye. But if you will come with a bit of remorse and openness then maybe you can get longer term before the deposit expires so you can try and arrange some other form of financing.

Astonishing! Words fails me, almost.


OP. Ignore this claptrap. Essentially, if they refuse to pay back your deposit they are stealing from you, whatever the T&Cs might say. I'm not sure what the remedy is at this point, but of course your first action should be to ask them for it back. If they won't give you back YOUR money then maybe Trading Standards is the first port of call. Perhaps also see if your local newspaper would be interested.