Reclaiming unfair 'non-refundable' deposit on a property investment mentoring course

poc_uk

Hi all,


I'm hoping you can steer me in the right direction.


Basically, just less than a month back I signed up to a 4 day property mentoring course based in Glasgow, Scotland. The course is due to start on the 31st of October 2019, so around 44 days from now. It's worth mentioning the property training company who I will not name just yet is based in Glasgow too. I myself am from the UK.


The course itself was around £3600+VAT, however I was not happy with paying this in one go after a real hardsell - so asked if I could make 3 monthly payments to cover this. This was agreed and so on the day of signing up for the course I proceeded to make a deposit of £596.14 to said company.


My financial situation has changed since booking, and as a result I now do not wish to go on the course any longer so have therefore issued notice to them in the form of an email telling them in advance that my direct debit has been cancelled and I no longer wish to take part in the 4 day course.



Unfortunately for me, in their terms on conditions which seem very unfair (in my opinion), they state the deposit is non-refundable. Some people previous to myself paid in full for the course upfront and the terms and conditions also state all bookings are final and cannot be cancelled or refunded. So it seems I am not the only person to fall foul of said company.


I have a feeling they are ignoring my emails if I am honest, as I have not had a reply from them as yet. After looking on the internet it seems a company only has a right to charge a 'fair' amount that is directly proportional to their business loss in the event of a cancellation.


Obviously, I am giving the company plenty of advanced notice (44 days to be exact) of which they can easily fill my place. How can they argue the full deposit is their right to keep? I just don't see how selling a place on a course gives them a right to charge that much cash. This company charge a £500+VAT charge just to change a name on a booking at their discredition, which hopefully gives you a flavour for how their terms and conditions look. The course is literally vocal presentations through 4 days, so no physical goods will have been ordered as a result of my place being booked.



What right have I got as a consumer? I paid on a Visa Debit card and in hindsight should have paid on credit card.


I would like to recover my deposit in full as I really feel this is an unfair business practice as they are charging a hefty amount of money just for a cancellation when i'm sure my place makes absolutely no difference to how their day will run.


Any advice on how best to proceed will be gladly welcomed.

Thanks in advance!

davidmcn

poc_uk wrote: »

What right have I got as a consumer?

Are you a consumer in this context? It doesn't sound like a consumer product, more like training aimed at those running a business.

poc_uk

davidmcn wrote: »

Are you a consumer in this context? It doesn't sound like a consumer product, more like training aimed at those running a business.

Hi David,


I'm not sure in this situation? I have purchased a course in readiness for receiving a training product so does this make me a consumer? I'm certainly no expert so anyone's help is much appreciated!

DCFC79

poc_uk wrote: »

Hi David,


I'm not sure in this situation? I have purchased a course in readiness for receiving a training product so does this make me a consumer? I'm certainly no expert so anyone's help is much appreciated!

Why did you sign up ?


Were you planning on starting your own business ?

born_again

poc_uk wrote: »

What right have I got as a consumer? I paid on a Visa Debit card and in hindsight should have paid on credit card.

Thanks in advance!

Even had you paid on a Credit card. As you cancelled. There is no breach of contract misrepresentation by the company.

DoaM

Even if this was a distance contract (entered into via distance means rather than a home visit, for example), you may still not have cancellation rights as it was a contract for an event to be attended on a fixed date or dates.

poc_uk

DCFC79 wrote: »

Why did you sign up ?


Were you planning on starting your own business ?

No - it was a course to purely increase my knowledge on property and see if it may be a viable option for future retirement plans.

poc_uk

Taken from 'Which' consumer website:



Can a deposit be non-refundable?

Just because something is written in a contract, it doesn’t mean it is always legally binding, as businesses ordinarily cannot rely on unfair terms.


Only in certain circumstances can businesses keep your deposit or advance payments, or ask you to pay a cancellation charge.
If you cancel the contract, the business is generally only entitled to keep or receive an amount sufficient to cover their actual losses that directly result from your cancellation.
This could include costs already incurred or loss of profit.

When can a deposit be kept?

Typically, the business has no entitlement to keep any amount that can be saved by finding another customer, or cancelling any other suppliers they’ve employed. That would likely constitute an unfair contract term under the Consumer Rights Act.



This is the part I am interested in and guidance on how its related to my situation would be great.

davidmcn

poc_uk wrote: »

No - it was a course to purely increase my knowledge on property and see if it may be a viable option for future retirement plans.

How do the organisers describe the course? Do you have a link to where it's marketed?

The Which? advice is correct for consumer contracts.

poc_uk

davidmcn wrote: »

How do the organisers describe the course? Do you have a link to where it's marketed?

The Which? advice is correct for consumer contracts.

To avoid publically naming the company until I give them chance to reply to my email, I have private messaged you with the website.


I initially signed up to the course on a 'taster' day down in London where you are given a load of information and then given a hardsell where they discount the price of the full course to people booking on the day - sounded good so I booked, however I wish I hadn't as do quite a few others!

bris

Which is correct but the wording is key "or loss of profit."
Which in this case is key. The only way they can mitigate this is by finding someone to take your place which they could only do if they had limited places. They will have unlimited places available so that's not going to happen. Even as a consumer this is legally binding on you.


The kicker is they will even have a case for the balance.


This is clearly aimed at the B2B market so I doubt very much you are even a consumer for this contract but you need to tell us who they are to confirm this. You don't need to be in business to enter a contract clearly intended for business purposes.